Descriptions of System - Describe the system - (If any) Explain any problem(s) i

Question

Descriptions of System
- Describe the system
- (If any) Explain any problem(s) in the system (e.g. causes of the problem
and its (potential) effects?
please help me

Problem: Order fulfillment process Assume that if the product requested is not in stock, i needs to be manufactured before the order handling can continue. In this way, an order can never be rejected To manufacture a product, the required raw materials have to be ordered. Two preferred suppliers provide different types of raw material. Depending on the prod- uct to be manufactured, raw materials may be ordered from either Supplier 1 or Supplier 2, or from both. Once the raw materials are available, the product can be manufactured and the order can be confirmed. On the other hand, if the product is in stock, it is retrieved from the warehouse before confirming the order. Then the process continues normally. After confirming the order, the shipment address is received and the requested product is shipped while the invoice is emitted and the payment is received. Afterwards, the order is archived and the process completes.

Explanation / Answer

It is the order processing & fulfillment system that performs step by step activities while confirming and processing the order. It has involved suppliers that are outside of the organization to be the part of the system. Here, suppliers are used to deliver the raw material as and when required and product is manufactured if it is not available in the warehouse.

It has different issues and problems and potential effects upon the order fulfillment as follows:

1. The inclusion of the suppliers as part of the system, can delay the order confirmation time. Suppliers can also refuse to deliver in short notice period. It will increase the overall lead time of the deliver. It will negatively affect the ability to deliver the order on time. Besides, the customers may not be returning if order is not met on time.

2. Supply of raw material can be hampered due to any logistic problem and order commitment may not be completed. Here, the firm should take adequate inventory in place on the basis of annual demand. Not doing so, will increase the delivery time and consumers will be annoyed.

3. The organization cannot cater the sudden increase in demand. There will be a rise in the stock-out cost due to inability to cater the demand.

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