4.6 University Food Company Case (B) The University Food Company wants to incorporate more information technology into its organization, particularly its shipping department. The sales department has already implemented a database for order entry functions, and the production planning department has an information system for tracking inventory, including fi nished goods. The shipping department currently uses information from these sources in the course of doing its daily tasks. The shipping supervisor has asked you to study the activities in the department and to recommend an information system design to support the operation. What follows is a description of the tasks performed by the shipping clerk and support personnel during a typical day. At the beginning of each day, the sales department prints a report and sends it to the shipping department. This report, called the Open Orders Report, is a list of orders taken by sales that have not been closed out. Orders are not closed out until the fi nal shipment has been made against the order. An example of a typical open orders report is shown in Exhibit CS4.6. Open orders are listed in the ascending order of their promised delivery date. University Food plans its production in two ways: produce to order and produce to inventory. In the fi rst case, production is scheduled for a specifi c order. In the second case, production is done in the absence of a specifi c order. The second case occurs because a specifi c order is small and it is desirable to have a longer production run before changing over to another product. Changeovers require that the machinery is thoroughly cleaned before the next product can be made, thus incurring a signifi cant cost. The excess production is placed in inventory and is available for shipment the next time a customer orders the product. Also, sometimes production runs of the most popular food products are made to inventory during periods of slack demand. The shipping clerk receives a report (printout) of the fi nished goods inventory from the production planning department, showing the location of the fi nished goods inventory by inventory lot. The report is ordered by material ID in the ascending order. The clerk examines each of the open orders and determines whether or not there exists a matching product inventory lot. If the match occurs, a shipment can be made. A typical fi nished product inventory report is shown in Exhibit CS4.7. After identifying an inventory lot that can be shipped, the shipping clerk dispatches the forklift truck operator to the warehouse to fetch items to be shipped. He does this by giving verbal instructions to the driver concerning the lot number and location of the product. The driver collects the items and brings them on pallets to the shipping dock. He informs the shipping clerk that the pallets have been retrieved and gets his next assignment.

It is the responsibility of the shipping clerk to keep a daily record of everything that is transferred out of the warehouse for shipping and to indicate on the record the customer order against which it is shipped. The warehouse transfer report, shown in Exhibit CS4.8, is used for that purpose. The shipping clerk completes this record when pallets are brought to the loading dock. This document is transferred at the end of the day to the sales department where it is used as the source of information to close out sales orders. After completing an entry on the warehouse transfer report, the shipping clerk directs his personnel to load the cases of product on to a truck. As cases are being loaded, he fi lls out another important report maintained by the shipping clerk, the shipping summary report. This report is kept daily and held in a fi le in the shipping department. It describes the quantity of cases that are shipped, the customers to whom they are shipped, and the truck number on which they are shipped. University Food maintains its own fl eet of trucks, which is managed by the companys transportation department. The shipping department is only responsible for tracking the shipment to the truck on which it is dispatched. The transportation department is responsible for tracking deliveries to the fi nal customer. A typical shipping summary report is shown in Exhibit CS4.9. For each customer shipment on a truck, the shipping clerk prepares a bill of laden for the truck driver after the cases of product are loaded on the truck. Most of the information for the bill of laden is taken off the shipping summary and open orders reports. A copy of the bill of laden is sent to the transportation department at this time, and the other copies are given to the truck driver. No copies are kept in shipping. This bill of laden is presented to the customer when the driver arrives at the customers receiving location. A signed copy of the bill of laden is turned in to the transportation department when the driver returns from a delivery. The transportation department matches this copy to the one sent by the shipping department and closes out the delivery in its records. A typical bill of laden is shown in Exhibit CS4.10.

1. Using the description presented earlier, develop a functional architecture based on the IDEF0 method. The context diagram should be labeled Operate Shipping Department. 2. Draw a corresponding data fl ow diagram.

Unversity Food Conpany. Ii Open Orders Report, IO1/03 Order # | Cust id | Naine & Ship to PO # | Product ID Label Qty(cases Price Extension Deliver by Ner Yark Nt r Streat in Sanp 300 2L0 Bethlehe P 45.00 $13500 1101/03 110113 Chih w Beane 1000 0.00 40,000 2.00 22,4001 2.00 36,000 30.00 512000 35 0 Matin Lutber Kirg Bbrd Nea,NJ Comed Beef Hash 110103 356 Chicke Ncode Soup 3000 121 Sprirgiiali Ave. Amerrt,MA 3930 Calurbia Universit Ner Yor Beef Stew 0.00 0,00011/0303 10 Folly Square Ner Yark Nt 905 EXHIBIT CS4.6 Open Orders Report Finishcd Product Invcntory Rcport, 110/03 Material IDDescription Lot no. On Hand Location rea isle tier bin 13180 13210 12920 13010 ChickcnNoodle Soup 13220 13400 Beef Rarioli in Sauce 1840 13000 13285 500 5 20005 400 5 235 Chile w Bcans 243 Macaroni & Beans 100 5 600 5 600 5 600 54 000 5 3 210 380 1340 Fish Chowder Turkey Sou 13080 EXHIBIT CS4.7 Finished Product Inventory Report Unversity Food Conpany. Ii Open Orders Report, IO1/03 Order # | Cust id | Naine & Ship to PO # | Product ID Label Qty(cases Price Extension Deliver by Ner Yark Nt r Streat in Sanp 300 2L0 Bethlehe P 45.00 $13500 1101/03 110113 Chih w Beane 1000 0.00 40,000 2.00 22,4001 2.00 36,000 30.00 512000 35 0 Matin Lutber Kirg Bbrd Nea,NJ Comed Beef Hash 110103 356 Chicke Ncode Soup 3000 121 Sprirgiiali Ave. Amerrt,MA 3930 Calurbia Universit Ner Yor Beef Stew 0.00 0,00011/0303 10 Folly Square Ner Yark Nt 905 EXHIBIT CS4.6 Open Orders Report Finishcd Product Invcntory Rcport, 110/03 Material IDDescription Lot no. On Hand Location rea isle tier bin 13180 13210 12920 13010 ChickcnNoodle Soup 13220 13400 Beef Rarioli in Sauce 1840 13000 13285 500 5 20005 400 5 235 Chile w Bcans 243 Macaroni & Beans 100 5 600 5 600 5 600 54 000 5 3 210 380 1340 Fish Chowder Turkey Sou 13080 EXHIBIT CS4.7 Finished Product Inventory Report