What is an open order?

An open order refers to a pre-negotiated agreement with a supplier that allows for multiple deliveries of goods or services over a specified period, rather than a single transaction. This type of arrangement provides flexibility for purchasing departments, enabling them to acquire items as needed without having to place a new order each time. Open orders can facilitate better inventory management and help maintain consistent supply levels, as the supplier is aware of the ongoing demand.

In contrast, the other options describe different purchasing mechanisms. A specific delivery schedule aligns more closely with a standard purchase order that details when particular items will be delivered, which is not necessarily applicable to open orders. A formal purchase requisition is the internal process used to request goods or services but does not confirm an arrangement with a supplier. Lastly, a one-time purchase request pertains to situations where goods or services are needed just once, lacking the ongoing nature associated with open orders. Therefore, option C accurately captures the essence of an open order in procurement practices.