The flowchart below illustrates two alternative inventory ordering methods. Answer part 1 to 3 based on this flowchart.

Required:

1. Some organizations prefer using alternative two. What are the advantages of using alternative two instead of the alternative one? Be specific.

2. What is the difference between purchase requisition and purchase order?

Purchases Data Processing Department Receiving Accounts Payable Purchase lequisition File Blind Copy Pay Copy Prepare Purchase Blind Copy Acct Pay Copy File Copy Open Purchase Purchase Order File Orders Vendor File Order Bind Copy Acct Pay Copy File Copy Review and Purchase Distribute Order Blind Copy Acct Pay Copy File Copy Purchase Order File Vendor ALTERNATIVE ONE Purchases Data Processing Department Receiving Accounts Payable Transaction Purchase List Requisition File Prepare Purchase Blind Copy Acct Pay Copy Review Open Purchase and Order File Orders Vendor File File Blind Copy Acct Pay Copy Transaction Purchase Order List Transaction List Vendor File ALTERNATIVE TWO