What type of order is referred to as a spot order?

A spot order is characterized as a type of purchase that is made for immediate delivery and is typically a one-time transaction. This type of order is often executed to meet urgent needs for goods or services without a long-term commitment or contract in place.

Choosing a one-off order for capital items accurately represents the nature of spot orders, as they often address immediate requirements rather than ongoing supply agreements or recurring purchases. While long-term supply agreements and recurring monthly purchases imply a consistent demand over time, and bulk orders focus on price reductions through purchasing larger quantities, spot orders are distinct in their immediacy and lack of future commitment. By understanding that a spot order is a transaction that meets an urgent need for a specific item without an ongoing or repeat order agreement, it clarifies why a one-off order for capital items fits the definition of a spot order.