When a Customer Order is received from one of Savvy Dude's many retailers, the Sales Department uses the Customer Order to check inventory availability by looking up the items in the inventory database. If the inventory to fill the order is not available, the Sales Department prepares a Back-order document which sent to Purchasing and the other copy is filed alphabetically with the Customer Order in the Sales Department. If the inventory for the order is available, the Sales Department prepares a Sales Order with 2 copies. One copy of the Sales Order is sent to the customer and alphabetically in the Sales Department with the Customer Order and one copy of the Sales Order is sent to the Warehouse. then in the Warehouse, the Sales Order serves as a picking ticket to release the stock. A warehouse employee picks and packs the goods to complete the order which is then forwarded on to the Shipping Department with the Picking Ticket.

In the Shipping Department the order is checked against the Picking Ticket and a Packing Slip is created. The Shipping Department then prepares a Shipping Confirmation which is forwarded to the Billing Department and files one copy of the Shipping Confirmation in the Warehouse by date along with the Picking Ticket. After Billing Department receives the Shipping Confirmation, Inventory and Accounts Receivable files are updated and an Invoice is generated. Additionally, a Daily Sales Report is generated and forwarded to the Controller. Finally, an Accounts Receivable Aging Report is generated and forwarded to the Credit Manager.

give an idea of Value System and Chain Level REA model.