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 ree o uments agree, a che kis ss e T process can e i grammed stilo se Requesting Receiving, and Preparing and Matching Preparing Materials Preparing SelectingPurchaseReceiving Receiving- Ticket (R/T) Preparing MR RT, and VendorDelivering Invoice Request (M/R) Order Vendor Check Vendor Bids Correcting Reconciliation Differences An activity analysis indicated the following activity costs with this process: $52,800 Preparing materials request 178,200 Requesting, receiving, and selecting vendor bids 33,000 Preparing purchase order 46,200 Preparing receiving ticket Next Previous Correcting Reconciliation Differences An activity analysis indicated the following activity costs with this process: Preparing materials request $52,800 Requesting, receiving, and selecting vendor bids 178,200 Preparing purchase order 33,000 Preparing receiving ticket 46,200 Matching M/R, R/T, and invoice Correcting reconciliation differences 211,200 72,600 Preparing and delivering vendor payment $660,000 Total process activity cost )on average, the process handles 60,000 individual requests for materials that result in 60,00 ndividual payments to vendors. Management proposes to improve this process in two ways. First, the Purchasing Department will develop a preapproved vendor list for which orders can be placed without a request for quote. It is expected that this will reduce the cost o requesting and receiving vendor bids by 70%. Second, additional training and standardization will be provided to reduce errors introduced into the materials requisition form and receiving tickets. It is expected that this will reduce the number of reconciliation differences from 5096 to 3090, over an average of 60,000 payments. p a table showing the percent of individual activity cost to the total process cost. Round percentages to the nearest whole number, if required. Omni Wholesale Company Individual activity cost to the total process cost Next Previous Check My Work 5 more Check My Work uses remaining a. Develop a table showing the percent of individual activity cost to the total process cost. Round percentages to the nearest whole number, if required. Omni Wholesale Company Individual activity cost to the total process cost Procurement Activities Activity Cost Percent of Total Process Cost Preparing materials request Requesting, receiving, and selecting vendor bids Preparing purchase order Preparing receiving ticket Matching M/R, R/T, and invoice Correcting reconciliation differences Preparing and delivering vendor payment Total process activity cost b. Determine the average total process cost per vendor payment, assuming 60,000 payments. Round to the nearest cent, if requi per vendor payment Next Previous Check My Work 5 more Check My Work uses remaining 6:02 PM E c. Prepare a table showing the improvements in the activity costs as a result of the changes proposed by management. If an amount is zero, enter a "0" Omni Wholesale Company Changes activity costs Actvity Cost Atfter Imgrovement Activity Cost Savings Procurement Activities Activity Cost Prior to Improvement Preparing materials request Requesting, recelving, and selecting vendor bids Preparing purchase order Preparing receiving ticket Matching M/R, R/T, and invoice Correcting reconciliation differences Preparing and delivering vendor payment Total process activity cost for 60,000 total payments. Round to enacted average cost per vendor payment, assuming that the changes proposed by management are d. Estimate the the nearest cent. Next Previous 5 more Check My Work uses remaining Check My Work 6:02 PM /18/2019 2 99+