Supply Chain Management Professional (SCMP) · Question
Which document legally binds a buyer to purchase specific quantities at a stated price from a supplier?
A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
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Question: Which document legally binds a buyer to purchase specific quantities at a stated price from a supplier?
Answer options:
- Request for Quotation (RFQ)
- Purchase Requisition ✅ Purchase Order (PO)
- Sales Invoice
Correct answer: Purchase Order (PO)
Explanation: A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
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