Lumber, Inc. is a wholesale distributor of auto parts, such as bulbs, brakes, upholstery, and related items. Customers receive an updated catalog annually and place orders over the phone.

When a customer calls in with an order, a clerk asks for the customer ID and name. The clerk keys in the customer number, and the computer retrieves the customer record from the customer database and displays it on the clerk’s screen. The clerk compares the customer name to the data on the screen to ensure that the customer is legitimate. If everything checks out, the clerk enters the customer’s order. After the order is entered, the computer compares the amount of the order to the available credit to ensure that the purchase does not exceed the credit amount limit.

This results in the creation of an entry in the sales event data store and an allocation of inventory. At the end of the day, the sales event data are processed against the customer data and the inventory data, and the sales order is recorded in the sales order master data store. At the same time, a customer acknowledgement is printed in the mail room and is mailed to the customer. Also, a picking ticket is printed in the ware house and will be used to assemble the customer’s order.

P-1: Enter customer order close to where the order is received

Lumber, Inc. is a wholesale distributor of auto parts, such as bulbs, brakes, upholstery, and related items. Customers receive an updated catalog annually and place orders over the phone.

P-2: Customer credit check

P-3: Populate input screens with master data

P-4: Programmed edit checks

P-5: Compare input data with master data

P-6: Preformatted screens

P-7: Online prompting

P-8: Procedures for rejected inputs

P-9: Confirm input acceptance

P-10: One-for-one checking of picket ticket with goods

P-11: Enter shipment data in shipping

P-12: Turnaround document

P-13: Automated data entry

P-14: Independent shipping authorization

P-15: One-for-one checking of goods, picking ticket, sales order

M-1: Independent customer master data maintenance

M-2: Review open sales orders (tickler file)

****Prepare a control matrix, including explanations of how each recommended existing control plan (P-1, P-2,...) helps to accomplish, or would accomplish in the case of missing plans (M-1, M-2, ...), each related control goal. ****

Answer rating: 100% (QA)

Activities Receive an updated catalog annually To place orders Share Cu... View the full answer