For the following questions, please read the scenario related to Volunteer

Boating $($below$).$

Volunteer Boating

Volunteer Boating manufactures and sells high end boats to individual

customers. They sell both standard models and customized versions of their

many boat offerings. In order to keep the process going when manufacturing

their standard models, they utilize many vendors and order specific parts from

each one. Volunteer Boating has negotiated with several vendors to use a

regulated system of providing purchase orders for items that they regularly

order. This system allows their procurement software to create standardized

purchase orders which are sent via the system when the in$-$stock inventory falls

below a certain reorder point. Their inventory management system will send the

purchase order directly to the customer relationship management system of

their vendors and the items are ordered without any human interaction.

Other parts for customized boats must be special ordered. Requests for

these parts come in when a salesperson creates a custom quote. The quote for

the specialized item will cause a request to be sent to the purchasing

department to see what the charge should be to the customer. If the customer

agrees to the quote then this request will be sent to the purchasing manager for

vendor selection and approval.

Volunteer Boating often will find new vendors to offer products as their

customization line expands. When a new vendor is needed, Volunteer Boating

will call many vendors to determine lead times, prices and quality expectations

before choosing a new vendor to purchase a product from.

Once products arrive, receiving employees will count the items, check

them for defects and enter information including quantity into the inventory

management system which will verify that the number received matches the

number ordered. If there is a discrepancy, the purchasing manager and the

receiving manager will be notified to investigate. Additionally, all vendors are

required to send invoices in with the deliveries and these invoices are sent over

to the accounts payable department as soon as the items have been received

into inventory so the accounts payable records can be kept up to date.

A Volunteer Boating is planning an initial public offering in the near

future, they want to keep cash flows as free as possible while still taking

advantage of discounts for paying early if possible. The inventory management

system is set up in such a way to alert accounts payable as the vendor invoice

becomes due, so they are able to decide about taking advantage of these

discounts.

For each listed term, please answer one of the following:

Yes, Volunteer Boating does this.

No$,$ Volunteer Boating does not do this.

There is not enough information given to determine whether Volunteer

Boating does this $($but it would apply to this business process if described $-$

OTC or PTP$).$

This does not apply to the described business process $($OTC or PTP$).$ Question $27$

General Authorization

Yes, Volunteer Boating does this.

No$,$ Volunteer Boating does not do this.

There is not enough information given to determine whether Volunteer Boating does this $($but it would

apply to this business process if described $-$ OTC or PTP$).$

This does not apply to the described business process $($OTC or PTP$).$