1. Describe how you believe an efficient and effective purchasing system should be organized at Eagle Boys Pizzeria. Consider details such as the following: a) a) How many purchasing agents should be employed?
b) Where will these purchasing agents be located?
c) How will the necessary information for purchasing flow between restaurants and these purchasing agents?
d) How will IT systems be used in purchasing?
e) How and when will purchased items be delivered to the restaurants?
(Remember that all 49 locations are within the Pittsburgh area and none would be more than a one-hour drive from the corporate Headquarters.)
- Draw a process map of your proposed purchasing system.
- Describe any IT controls that would be necessary or desirable in your purchasing system.
2. Briefly describe Eagle Boys Pizzeria conversion processes; that is, what gets converted, how is it done, and where are the underlying processes performed [at which Eagle Boys Pizzeria location(s)]?
3. What procedures and internal controls would you recommend to Eagle Boys Pizzeria to minimize the risk of lost sales due to stock-outs (i.e., running out of ingredients) and the resulting idle time that may be incurred while employees are awaiting delivery from the commissary?