A blanket order is defined as an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period of time, sometimes at predetermined prices. It is normally used when there is a recurring need for expendable goods. Hence, items are purchased under a single purchase order (P. A purchase order (PO is a commercial document issued by a Buyer to a seller, indicating the type quantities and agreed prices for products or services O) rather than processing a separate P. O. each time supplies are needed.
Having a blanket order dispenses the customer with holding large inventories and avoids the administrative expense of processing frequent purchase orders, while favoring discount pricing through volume commitments. Inventory is a list for goods and Materials, or those goods and materials themselves held available in stock by a Business.