Which term describes a formal request for items to be issued through the supply chain?

• A. Purchase Order
• B. Requisition
• C. Demand Signal
• D. Work Order

Answer: (B)

Requisition is the formal internal request for items or services to be issued through the supply chain. It names what’s needed, how much, where it should go, and often includes funding or authorization details. Once approved, it starts the procurement process and can lead to a purchase order being issued to a supplier to fulfill the need. A purchase order, on the other hand, is the document sent to an external supplier to actually buy goods. A demand signal is more about forecasting or signaling future needs for planning and inventory control, not a formal internal request to issue items. A work order directs someone to perform a task or produce something, rather than to issue an inventory item.