Assurance Services. Henry’s Health Food Store maintains a perpetual inventory on itscomputer. The sales representative from A-Plus Vitamins has recommended the following toHenry:∙ All the files should have password protection.∙ A-Plus Vitamins should be given the URL and the password for Henry’s inventory file onthe computer, which can be accessed from outside.∙ A-Plus Vitamins will search the inventory for items that fall below an established reorderpoint and will automatically ship a set amount of product to Henry’s.Required:a. What are the advantages of this arrangement for Henry’s? For A-Plus Vitamins?b. What concerns might Henry’s have in this arrangement?c. How might these concerns be addressed?
Assurance Services. Henry’s Health Food Store maintains a perpetual inventory on its
computer. The sales representative from A-Plus Vitamins has recommended the following to
Henry:
∙ All the files should have password protection.
∙ A-Plus Vitamins should be given the URL and the password for Henry’s inventory file on
the computer, which can be accessed from outside.
∙ A-Plus Vitamins will search the inventory for items that fall below an established reorder
point and will automatically ship a set amount of product to Henry’s.
Required:
a. What are the advantages of this arrangement for Henry’s? For A-Plus Vitamins?
b. What concerns might Henry’s have in this arrangement?
c. How might these concerns be addressed?
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