Final answer:
The steps of the purchasing cycle in their correct order are: 1. Receive the requisition, 2. Select a supplier, 3. Place an order, 4. Receive the order, and 5. Monitor the order. This sequence ensures a streamlined purchasing process.
Step-by-step explanation:
The purchasing cycle is a fundamental concept in supply chain management and business operations. Understanding this cycle is crucial for efficiently managing the acquisition of goods and services within a company. Let's arrange the steps of the purchasing cycle in their chronological order.
1. Receive the requisition: This is the initial step where the need for a purchase is formally requested within an organization.
2. Select a supplier: Once the need is established, the next step is to choose a reliable supplier that can provide the goods or services at the desired quality, price, and time.
3. Place an order: After selecting the supplier, a formal purchase order is created and sent, signifying the company's intent to buy the specified products or services.
4. Receive the order: Upon arrival, the goods or services are received and checked for quality and accuracy against the purchase order.
5. Monitor the order: This step involves tracking the order's progress from placement to delivery, ensuring that everything runs smoothly until the order is received and even after that if necessary.
In summary, these five main steps of the purchasing cycle should be executed in the order provided for an effective purchasing process.