Stuff It Up Ltd is a manufacturer of luxury bedding, pillows, and cushions. The company has recently upgraded to an ERP system. A new staff member was tasked with entering all suppliers and related details into the system. Each supplier delivers ONE type of raw material. All products require multiple raw materials.

As the staff was uncertain about delivery lead times, she entered 5 (days) for each supplier as she was told that suppliers, on average, need five days to deliver their products. Not inputting any lead time was not an option as this was a required field. The new staff member intended to obtain accurate lead times later (on the same day) and to update accordingly but forgot to do this. Lead times vary significantly between suppliers (from 1-20 days). Assume the failure to update lead times is not detected.

a) Do you consider the staffs action with respect to recording lead times an error? Explain why or why not.

b) What decision(s) made during the conversion cycle would be affected by this data problem?

c) What decision(s) made during the expenditure cycle would be affected by this data problem? (1 mark)

d) How would this data problem affect the performance of the conversion cycle? Identify two impacts on the cycle.

e) How would this data problem affect the performance of the revenue cycle of Stuff It Up Ltd?