1. Simply put, using the ABC Class coding for item being

manufactured and/or assembled. Your question is very broad

and hard to answer since you are asking a question that

involves to many departments. But generally speaking, when

it comes to cost, ship dates, quantities ordered, the ABC

rule is best.

2. A "Purchase Order" is a legal and binding contract

between a Manufacturer and Supplier that stipulates the item

ordered, quantity of item, ship dates, and cost of item that

the Supplier agrees to supply the Manufacturer.

A "Invoice" is what the Supplier sends to the Manufacturer

after or with the items that are described in a Purchase

Order. The Invoice contains the item description, quantity

shipped, and cost of said item and is to be paid by the

Manufacturer according to the terms agreed upon either ahead

of time or as described in the Purchase Order or as noted on

the Invoice. Generally, the terms are Net 30 days.

3. All items to be purchased have a blueprint or a listing

of what this item is made of and/or a Manufacturer part

number. If it is to be a manufactured part made from a

blueprint, the purchasing agent has the responsibility to

send out for quote (3 vendor min.) and receive from the

Vendor, a list of prices based on quantity ordered. The best

product and material come from reputable and established

companies that deal with this type of product. Larger

companies have better price since they deal with larger

volumes of raw material and better machining equipment and

more experienced personnel.