Glossary
Plain-language definitions of the terms used across this site.
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- Blanket Purchase Order (Blanket PO)A blanket purchase order is one purchase order placed with a supplier to cover repeated deliveries over a set period, often at pre-agreed prices.
- BOM costingBOM costing is pricing each line of a bill of materials and adding the lines to get a cost per unit of the parent product.
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- Warehouse SlottingWarehouse slotting is deciding which storage location each SKU (stock keeping unit, a distinct product) gets, so that picking travel and handling fall.
- Weighted Average Cost MethodThe weighted average cost method assigns every unit of an interchangeable item the same cost: total cost of opening stock plus purchases, divided by total units available.