PROLEM 2: INVENTORY ONDENNG ALTERNATIVES Data Procensing Dapartmant Accounts Payato Puchasen Racaiving Roquaition Fl Lind Capy Acd Py Copy Fla Copy Propare Purchase aind Copy Acct Pay Copy Opan Puchane Ordur F Ordars Vunder Fe Puhas Accl Pay Copy Fe Copy Rovow Puhase Order Disrbute lind Cap Puchase Vendor ALTERNATIVE ONE Deta Procensing Dupartmant Puachason Racaving Accourts Payatde Purchase Raquon F Transaction und capy At Pay Copy Propare Opan uthase Ordar Fla Purchase Ordars Vander Fe Fle Prchane Order Transaction Lat Transaction List Vunder Fle ALTERNATIVE TWO

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter23: Other Topics In Working Capital Management
Section: Chapter Questions
Problem 1Q
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INVENTORY ORDERING ALTERNATIVES
The flowchart for Problem 2 illustrates two alternative inventory ordering methods.
Required
a. Distinguish between a purchase requisition and a purchase order.
b. Discuss the primary advantage of alternative two over alternative one. Be
specific.
c. Under what circumstances can you envision management using alternative
one rather than alternative two?

PROLEM 2: INVENTORY ONDENNG ALTERNATIVES
Data Procensing Dapartmant
Accounts Payato
Puchasen
Racaiving
Roquaition Fl
Lind Capy
Acd Py Copy
Fla Copy
Propare
Purchase
aind Copy
Acct Pay Copy
Opan Puchane
Ordur F
Ordars
Vunder Fe
Puhas
Accl Pay Copy
Fe Copy
Rovow
Puhase
Order
Disrbute
lind Cap
Puchase
Vendor
ALTERNATIVE ONE
Deta Procensing Dupartmant
Puachason
Racaving
Accourts Payatde
Purchase
Raquon F
Transaction
und capy
At Pay Copy
Propare
Opan uthase
Ordar Fla
Purchase
Ordars
Vander Fe
Fle
Prchane Order
Transaction
Lat
Transaction
List
Vunder
Fle
ALTERNATIVE TWO
Transcribed Image Text:PROLEM 2: INVENTORY ONDENNG ALTERNATIVES Data Procensing Dapartmant Accounts Payato Puchasen Racaiving Roquaition Fl Lind Capy Acd Py Copy Fla Copy Propare Purchase aind Copy Acct Pay Copy Opan Puchane Ordur F Ordars Vunder Fe Puhas Accl Pay Copy Fe Copy Rovow Puhase Order Disrbute lind Cap Puchase Vendor ALTERNATIVE ONE Deta Procensing Dupartmant Puachason Racaving Accourts Payatde Purchase Raquon F Transaction und capy At Pay Copy Propare Opan uthase Ordar Fla Purchase Ordars Vander Fe Fle Prchane Order Transaction Lat Transaction List Vunder Fle ALTERNATIVE TWO
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Publisher:
Cengage Learning