5. System diagram showing key information between FastFit (HQ and warehouse) and a supplier including orders and invoices:
Reasons that this diagram is more complicated than the one including the store and customer:
• Warehouse must keep track of inventory so that it can send the HQ a new order when it is needed. So not only does it receive and send goods but it must also report to the HQ.
• When the warehouse has put in a new order with the HQ, the HQ must then give that order to the supplier so that it can ship the goods to the warehouse.
• The supplier receives $ from the HQ but this diagram shows that in order for the supplier to receive $ they must send the HQ an invoice.
• This diagram shows that not only do goods and money flow through the diagram but orders and invoices must as well. If orders and invoices were not placed between FastFit and the supplier then there would be no way of knowing how much to pay or how many goods must be sent.
• This diagram shows that communication is made with the use of orders and invoices in order to make a sale and reach the customer.
6. Information on receiving and paying invoices is obtained by:
• Warehouse informing HQ that the inventory is low and must obtain more by placing a new order with the supplier.
• HQ will decide how many goods are needed from the supplier by finding out how much more can be stored in the warehouse.
• The price of the invoice will then be determined by how many goods HQ needs to order and store in the warehouse.
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