Which term is used for a long-term commitment to purchase from a supplier?

A blanket order is a purchasing agreement between a buyer and a supplier that establishes the terms for future orders over a set period. This agreement allows the buyer to secure products or services from the supplier without having to issue individual purchase orders for every transaction.

The long-term nature of a blanket order ensures that both parties can plan their inventory and production schedules more effectively, as it provides a level of certainty about future demand and supply commitments. By committing to purchase certain quantities over time, organizations can often negotiate better pricing and terms, benefiting both the buyer and the supplier.

In contrast, an open order typically allows for flexibility in terms of quantities and delivery schedules, but it does not imply the same long-term commitment as a blanket order. A traveling requisition refers to a request for materials that may be used at multiple locations, and does not indicate a commitment to purchase from a supplier. A non-stock requisition is generally used for ordering items that are not kept in inventory, and like the others, it does not denote a long-term purchasing commitment.