Assume that if the product requested is not in stock, it needs to be manufactured before the...

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General Management

Assume that if the product requested is not in stock,it needs to be manufactured
before the order handling can continue. In this way, an order cannever be rejected.
To manufacture a product, the required raw materials have to beordered. Two
preferred suppliers provide different types of raw material.Depending on the prod-
uct to be manufactured, raw materials may be ordered from eitherSupplier 1 or
Supplier 2, or from both. Once the raw materials are available, theproduct can be
manufactured and the order can be confirmed. On the other hand, ifthe product
is in stock, it is retrieved from the warehouse before confirmingthe order. Then
the process continues normally. After confirming the order, theshipment address is
received and the requested product is shipped while the invoice isemitted and the
payment is received. Afterwards, the order is archived and theprocess completes.
1-Descriptions of System
- Describe the system
- (If any) Explain any problem(s) in the system (e.g. causes of theproblem
and its (potential) effects

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Description of System 1 Make to order and 2Inventory System When the product requested is not in stock and needs to be manufactured MTO Make to Order is applicable 1 MTO is the system where decisions on order acceptance and on production planning are often made separatelySales department is responsible for accepting orders while the production See Answer

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