Health Care LLC specializes in selling hospital,
medical, scientific, laboratory equipment, devices and instruments to
hospital and medical colleges. The company handles both written and
telephone orders, using the following procedures.
One of several company-employed field sales representatives records customer orders on a three-part form (Form A).
The original is left with the customer, the duplicate is mailed to
central headquarters each day in a special color-coded envelope, and the
triplicate is retained in the sales representative’s order pad. When
the written orders arrive at headquarters, they go directly to the
secretary of the order entry department. The secretary initially
receives all telephone orders and inquiries as well.
secretary routes inquiries to the customer service representatives and
directs both written and telephone orders to one of three order entry
clerks. Telephone orders are transcribed onto Form B and
then read back to the customer for confirmation. Because both written
and telephone orders are now in written form, further processing of Forms A and B is identical.
All customer orders are entered through video display terminal
VDT located in order entry. They undergo a series of programmed edits
as part of the data entry process. One of the edits is to validate the
customer’s name(s), address(es), freight and credit terms, and credit
rating by referencing the customer master file (Note: all computer files
are kept on disk). The inventory master file is accessed to check
Orders that pass all these tests are then
recorded on the sales order master file; the inventory balance is
reduced, and a screen message informs the clerk of the updates. The
clerk files the accepted customer orders by customer number. Orders that
fail any of the edits or validations are recorded in a computer
“suspense” file for later investigation.
Each evening, data processing prints five-part sales orders (Form C)
from the data stored on the sales order master file. Order entry
receives two copies of the sales order; it files copy 2 in the accepted
order file and mails the original (copy 1) to the customer. Copies 3 and
4 are sent to the warehouse, and copy 5 is sent to accounts receivable.
Using copy 3, warehouse workers pick the goods. They file copy 3 and
deliver the goods and copy 4 to the shipping department.
A shipping clerk checks the assembled order against sales order copy 4, prepares a three-part shipping notice (Form D),
and records the shipment in a shipping log. The shipping notice
original, signed by the carrier, serves as the bill of lading; sales
order copy 4 is used as the packing slip. The bill of lading and packing
slip accompany the goods to the customer. The duplicate of the shipping
notice is sent to accounts receivable; the triplicate is sent to order
entry, where it is filed in the accepted order file.
1- Draw a context diagram .
2- Draw a detailed data flow diagram.
3-Draw a flow chart .
4- Prepare the table of entities and activities.