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In a small company that sells TV and electrical repair components, the rules for selling products specify that sales representatives are assigned to unique regions
In a small company that sells TV and electrical repair components, the rules for selling
products specify that sales representatives are assigned to unique regions of the country. Sales
either come from cold calling, referrals or current customers with new orders. A large portion
of their business comes from referrals from larger competitors who send their excess or
difficult projects to this company. The company tracks these referrals and returns the
favours to these competitors by sending business their way. The sales reps receive a
commission on actual purchases, not on orders, in their region. They can collaborate on a sale
with reps in other regions and share the commissions, with going to the home rep and
going to the visiting rep. For any sales beyond the reps previously stated and approved
individuals annual sales goals, he or she receives an additional commission, and endofyear bonus determined by management and a special vacation for his or her family. Customers
receive a discount for any purchases over $ per year which are factored into the
reps commissions. In addition, the company focusses on customer satisfaction with the
product and service, so there is an annual survey of customers in which they rate the sales rep.
These ratings are factored into the bonuses such that a high rating increases the bonus amount,
a moderate rating does nothing and a low rating can lower the bonus amount. The company
also wants to ensure that the rales reps close all sales. Any differences between the amount of
orders and actual purchases are also factored into the reps bonus amount. As best you can,
present the logic of this business process using a decision table. Indicate any assumptions you
need to make.
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