Company X sells desktop and laptop computer systems that are assembled from parts and software which Company X purchases from third-party vendors. Company X sells to both individuals and small businesses. Sales begin with a customer order from the customer received by the sales department. When the customer order is received, the sales department checks inventory availability by looking up the item(s) in the inventory database and if the item is available, the customer order information is entered into the system. A sales order (4 copies) is generated from the system. One copy of the sales order is sent to the customer. One copy is filed in the sales department with the customer order. Two copies of the sales order are sent to the warehouse in order to release the stock and serve as a packing slip. If the item(s) on the customer order is not available, then the order information is entered into the system and a backorder is generated (2 copies). One copy of the backorder is sent to the production department, while the other copy is filed with the customer order by date in the sales department. A warehouse employee picks the goods and completes the order by shipping the order to the customer. A copy of the sales order is included as a packing slip with the order. The shipping department enters the order information into the system and generates a shipping confirmation (2 copies). One copy of the shipping confirmation is forwarded to the billing department and the other copy is filed in the shipping department by date along with the sales order. When the billing department receives the shipping confirmation the information is entered into the system to update inventory, and invoice is generated (2 copies). One copy of the invoice is sent to the customer, while the other copy is filed alphabetically in the billing department along with the shipping confirmation. Customers pay for their order by sending in their payment. The payment is received in the cash receipts department where it is entered into the system to update the accounts receivable database. A customer receipts report is also generated and sent to the controller. All payments are forwarded to the Treasury department.

1. Prepare a Value Chain Level REA model for Company X Computers, Inc. using the model below.