A pharmaceutical company advertises in magazines. Subscribers to magazine initiate most orders by completing coupons directly to the company. The firm also takes orders by telephone, answers inquiries about products, and handles payments and cancellations of orders. Products that have been ordered are sent either directly to the customer or to the companys regional offices that handle the required distribution. The company has three basic data files, which contain customer mailing information, product inventory information, and billing information based on invoice number. During the next few years, the company expects to become a multimillion-dollar operation. Recognizing the need to computerize much of the mail-order business, the company has begun the process by calling you. 1. Draw a context diagram 2. Draw a detailed Data Flow Diagram ( Level 0 DFD)

Example 1)

Example 2)

FIGURE 3-5 Context Diagram for ;&S Payroll Processing Goverment Agencies and Payment Tax Report and Time Cards Departments Employee Check Employees Payroll Processing System Payrol Ches ployee Form Human Resources Employee choly Change Form Bank Payroll Report Management FIGURE 3-6 Level O DFD for S&S Payroll wks Employees Empbyee Chow Processing Human Resources Time Cards Departments - New Employee Form 20 Payroll Check Employee Change Form Pay Employees Bank 1.0 Update Employee Payroll Payroll Cash Disbursements Voucher > Employee/Payroll le Update General Payroll Tax Disbursements Voucher 3.0 Prepare Reports General Ledger Pay Taxes Tax Report and Payment Payroll Report General Ledger Prepare Reports Pay Taxes Tax Report and Payment Payroll Report Management Governmental Agencies