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Process Activity Analysis The procurement process for Omni Wholesale Company includes a series of activities that transforms a materials requisition into a vendor check. The

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Process Activity Analysis The procurement process for Omni Wholesale Company includes a series of activities that transforms a materials requisition into a vendor check. The process begins with a request for materials. The requesting department prepares and sends a materials request form to the Purchasing Department. The Purchasing Department then places a request for a quote to vendors. Vendors prepare bids in response to the request for a quote. A vendor is selected based on the lowest bid. A purchase order to the low-bid vendor is prepared. The vendor delivers the materials to the company, whereupon a receiving ticket is prepared. Payment to the vendor is authorized if the materials request form, receiving ticket, and vendor invoice are in agreement. These three documents fail to agree 50% of the time, initiating effort to reconcile the differences. Once the three documents agree, a check is issued. The process can be diagrammed as follows Preparing Materials Request (M/R) Requesting, Receiving, and Selecting Vendor Bids Matching M/R, R/T, and Vendor Invoice Preparing and Delivering Vendor Check Preparing Purchase Order Preparing Receiving Ticket (R/T) Correcting Reconciliation Differences An activity analysis indicated the following activity costs with this process Preparing materials request Requesting, receiving, and selecting vendor bids Preparing purchase order Preparing receiving ticket $20,800 65,000 13,000 18,200

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