Sourcing and Procurement
Glossary
Your trusted guide to exploring sourcing and procurement terms & definitions,
from the world’s leading procurement experts and companies
Economic Order Quantity
Economic order quantity is the level of inventory that minimizes the total inventory holding costs and ordering costs. The framework used to determine this order quantity is also known as Wilson EOQ Model.
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Economic operator
A contractor, supplier or service provider that operates in a particular market
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Economically Disadvantaged Area Business
Small business eligible for certification as socially disadvantaged business or economically disadvantaged area business: a small business entity organized for profit, including an individual, partnership, corporation, joint venture, association, or cooperative that is a certain percentage owned and is operationally controlled on a day-to-day basis by citizens of the United States. The areas of economic disadvantage are determined by the US Department of Labor.
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Economy of scale
The trend of cost per unit being reduced as output increases due to factors such as increased bargaining power and the cost of tooling being shared amongst larger numbers of units
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Electronic Marketplace
A marketplace on the internet where transactions between business partners can be made. Electronic marketplaces can include the business-to-business, business-to-consumer, or business-to-government purchase and sale of goods or services through the Internet. Typically processes include e-Tendering, e-Auctioning, vendor management, catalogue management, Purchase Order Integration, Order Status, Ship Notice, e-Invoicing, e-Payment, and contract management. See also Electronic Procurement Solution; Supplier Exchange.
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Economic growth
The increase over time in the value of goods and services produced by a country, often defined as a value per head of population
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Economic order quantity (EOQ)
The most economically viable quantity in which to buy stock which considers not only the material costs, but also associated costs such as storage, transport and administration costs
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Economy
The state of money flow, manufacturing, distribution, availability and consumption, or scarcity, of goods and services, energy, labour, or other resources at country level
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Electronic Data Interchange (EDI)
The direct computer-to-computer exchange of business in standard format. Transaction documents, such as purchase orders, invoices, and shipping notices, are transmitted electronically and entered directly into a supplier's (or buyer's) computer or into a third-party network for processing. Electronic funds transfer is a form of EDI whereby funds (or payments) are electronically exchanged from one party to another.
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Embedded carbon
The range of greenhouse gas (GHG) carbon emissions associated with the production process
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