Paraphrase If a sales representative places an order for tire rims, for example, the system verifies the customer's credit limit, schedules the shipment, identifies the best shipping route, and reserves the necessary items from inventory. If inventory stock is insufficient to fill the order, the system schedules the manufacture of more rims, ordering the needed materials and components from suppliers. Sales and production forecasts are immediately updated. General ledger and corporate cash levels are automatically updated with the revenue and cost information from the order. Users can tap into the system and find out where that particular order is at any minute. Management can obtain information at any point in time about how the business is operating. The system can also generate enterprise-wide data for management analyses of product cost and profitability.

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When a sales representative initiates an order for tire rims the system checks ... View the full answer