PART B QUESTION 1 Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the pharmacies around southern area of Malaysia. The followings are the description of the purchasing process of the company. The company maintain an inventory system that tracks the inventory level of all the products. The store clerk prepares a purchase requisition when the inventory level reaches the re- order point and sends the requisition form to the supervisor for verification. The supervisor checks the inventory system to verify purchase requisition. He signs the purchase requisition form and forwards it to purchasing department. Purchase clerk picks randomly the suppliers from the pharmaceutical supplier's directory website. Then he prepares the purchase order based on the purchase requisition form and mails the order to the vendor. A copy of the purchase order is filed in the purchase order file according to the date sequence. Upon receipt of goods from the vendor, the store clerk prepares two copies of receiving reports. He signs the receiving report and send a copy to accounts payable department. He files a copy in numerical order. The vendor's invoice is sent directly to the accounts payable department. The account payable clerk retrieves the purchase order and matches the details with the receiving report and invoice and then verifies the calculation in the invoice. The documents are filed in open invoice file. Then he posts the entries to the account payable ledger. For goods return, the store clerk prepares a goods return report, send a copy to vendor and files another copy in goods return file. The credit notes for the return will be sent directly by the vendor to accounts payable department. Accounts payable clerk will update the accounts payable ledger and file them. At the end of each month the accounts payable clerk will retrieve the invoices and related documents from the open invoices file, and process them for payment. The cheque together with the invoice are sent to the manager for review. After checking the documents, the manager will sign them and return them to the accounts payable clerk to distribute the cheques to the vendors. The invoices are marked as paid and filed in the paid invoices file. Account payables clerk will prepare a monthly summary of cheques issued to vendor and used them to update the accounts payable ledger. Required: Discuss FIVE (5) weaknesses in managing the purchasing process of Max Sdn Bhd; and b. Suggest FIVE (5) corrective actions that can be used to address the weaknesses identified in (a). Your answer should be written in the following format: a. a. Weaknesses b. Corrective Actions (15 marks) QUESTION 2 SMRBH Sdn Bhd was founded in 2010, focusing on the manufacturing of fabric and textile located in Seremban Prima. Their products have been sold to more than 50 countries and regions and won wide praise from customers. The procedures and process relating to the manufactures of finished products by the company are described in the following terms. The planning and scheduling for production process begins from the information of sales forecast and finished goods inventory status given by the marketing department. The production manager also obtains information from inventory status report, the bill of materials and route sheet that derived from the inventory file, bill of material file and route sheet file. This information is used by the manager in Production Planning Department to prepare a Master Production Schedule (MPS). It is used to specify daily production and raw materials to be used in the next production. Request for purchase of new materials will be done by preparing two material requisition documents. The production manager updates the material requisition file after sends each copy to purchasing department and store department. He then prepares other production documents such as a production schedule, work order and move tickets as part of the production procedures. The manufacturing production operations begin when materials are sent to the production centre for fabric and textiles production. The finished fabric and textile are packed into designated container, assigned an identification number or codes and sent to the warehouse. To reduce production time and cost, this company uses computer-integrated manufacturing (CIM) approach where Radio Frequency Identification (RFID) tags or bar codes are used to automate the tracking of inventories and labour. Then, the information of inventory and labour will be updated in the open production order file and employee file. Required: Illustrate Data Flow Diagram (DFD) for the production process of SMRBH Sdn Bhd. (10 marks) PART B QUESTION 1 Max Sdn Bhd is a medium size company dealing with distribution of medical supplies to the pharmacies around southern area of Malaysia. The followings are the description of the purchasing process of the company. The company maintain an inventory system that tracks the inventory level of all the products. The store clerk prepares a purchase requisition when the inventory level reaches the re- order point and sends the requisition form to the supervisor for verification. The supervisor checks the inventory system to verify purchase requisition. He signs the purchase requisition form and forwards it to purchasing department. Purchase clerk picks randomly the suppliers from the pharmaceutical supplier's directory website. Then he prepares the purchase order based on the purchase requisition form and mails the order to the vendor. A copy of the purchase order is filed in the purchase order file according to the date sequence. Upon receipt of goods from the vendor, the store clerk prepares two copies of receiving reports. He signs the receiving report and send a copy to accounts payable department. He files a copy in numerical order. The vendor's invoice is sent directly to the accounts payable department. The account payable clerk retrieves the purchase order and matches the details with the receiving report and invoice and then verifies the calculation in the invoice. The documents are filed in open invoice file. Then he posts the entries to the account payable ledger. For goods return, the store clerk prepares a goods return report, send a copy to vendor and files another copy in goods return file. The credit notes for the return will be sent directly by the vendor to accounts payable department. Accounts payable clerk will update the accounts payable ledger and file them. At the end of each month the accounts payable clerk will retrieve the invoices and related documents from the open invoices file, and process them for payment. The cheque together with the invoice are sent to the manager for review. After checking the documents, the manager will sign them and return them to the accounts payable clerk to distribute the cheques to the vendors. The invoices are marked as paid and filed in the paid invoices file. Account payables clerk will prepare a monthly summary of cheques issued to vendor and used them to update the accounts payable ledger. Required: Discuss FIVE (5) weaknesses in managing the purchasing process of Max Sdn Bhd; and b. Suggest FIVE (5) corrective actions that can be used to address the weaknesses identified in (a). Your answer should be written in the following format: a. a. Weaknesses b. Corrective Actions (15 marks) QUESTION 2 SMRBH Sdn Bhd was founded in 2010, focusing on the manufacturing of fabric and textile located in Seremban Prima. Their products have been sold to more than 50 countries and regions and won wide praise from customers. The procedures and process relating to the manufactures of finished products by the company are described in the following terms. The planning and scheduling for production process begins from the information of sales forecast and finished goods inventory status given by the marketing department. The production manager also obtains information from inventory status report, the bill of materials and route sheet that derived from the inventory file, bill of material file and route sheet file. This information is used by the manager in Production Planning Department to prepare a Master Production Schedule (MPS). It is used to specify daily production and raw materials to be used in the next production. Request for purchase of new materials will be done by preparing two material requisition documents. The production manager updates the material requisition file after sends each copy to purchasing department and store department. He then prepares other production documents such as a production schedule, work order and move tickets as part of the production procedures. The manufacturing production operations begin when materials are sent to the production centre for fabric and textiles production. The finished fabric and textile are packed into designated container, assigned an identification number or codes and sent to the warehouse. To reduce production time and cost, this company uses computer-integrated manufacturing (CIM) approach where Radio Frequency Identification (RFID) tags or bar codes are used to automate the tracking of inventories and labour. Then, the information of inventory and labour will be updated in the open production order file and employee file. Required: Illustrate Data Flow Diagram (DFD) for the production process of SMRBH Sdn Bhd. (10 marks)