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Savings R Us is a retailer with large stores in almost every county in the United States. The firm's goal is have all items fully stocked at all times. In order to reach their goal of no stockouts, the company has an arrangement with its suppliers that it is the supplier's responsibility to ensure that products are ordered and delivered before a shelf becomes empty. To do so, each supplier has installed software that monitors inventory levels at each Savings R Us store and automatically ships products to the store in time to fill near-empty shelves.
a. Draw a context diagram for this process. Are the suppliers internal or external entities on your diagram? Why?
b. Describe a set of controls that should be enacted for this process so that errors are prevented and fraud is discouraged. Are all the controls technology controls? Which controls are the responsibility of Savings R Us, and which are the responsibility of the suppliers?
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