In procurement, what does PO stand for?

In procurement, PO stands for "purchase order." A purchase order is a formal document issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services. This document helps to ensure that the buyer has a clear record of the items they intend to purchase and provides the seller with the necessary information to fulfill the order.

A purchase order serves as a legally binding agreement once accepted by the seller, which helps to facilitate efficient order processing, tracking, and payment. It is an essential component of inventory and supply chain management, allowing organizations to maintain clear and organized purchasing processes.

Other options, such as "price option," "product order," and "pending order," are not standard terms used in procurement and do not accurately describe the function or purpose that a purchase order serves within the purchasing process. Therefore, the term "purchase order" is the correct and most relevant definition in this context.