Abe plumbing inc case study

Each morning the purchasing agent reviews the inventory levels from his department terminal and searches for items that have fallen to their reorder points and need to be replenished. The purchasing agent then selects the vendors and creates digital purchase orders in the purchase order file.

ABE uses a centralized accounting system for managing inventory purchases and recording transactions. The system is almost entirely paperless. Each department has a computer terminal that is networked to the purchases/ accounts payable system that is run from a small data processing department.

(Optional) Prepare a system flowchart of a redesigned computer-based system that resolves the control weaknesses that you identified. Explain your solution. The Company’s existing system has a purchasing department which performs the purchase process.

Over the years they have expanded their operations to serve customers across the nation, and now employ over 200 people as technical representatives, buyers, warehouse workers, and sales and office staff. Most recently, ABE has experienced fierce competition from the large online discount stores such as Harbor Freight and Northern Supply.