MIS- Application Use Case
Group 1
Abhirup Das 09BM8002
Ashutosh Sinha 09BM8067
Amit Sarangal 09BM8082
Preface:
This document tries to describe the processes involved in a simple order to cash cycle. It is supported by
a ZOHO database based application and a user manual. Audience is expected to understand the basic
concepts underlying in an order to cash cycle. As it is developed as a part of a management course
work, this document does not take care of some of the real life business complexities.
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Table of Contents
Scenario .................................................................................................................................................. 4
Scope ...................................................................................................................................................... 5
Actors ..................................................................................................................................................... 5
Use Case Diagram ................................................................................................................................... 6
Usage Scenario ....................................................................................................................................... 7
Remarks .................................................................................................................................................. 8
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1. Scenario:
Our Company sells a number of stationary items (e.g. wood pencil) on credit each of which has
a fixed price and at any point of time there is a certain quantity of each item in the inventory.
There are customers who can pick up an order if
1. The required amount is available in the inventory.
2. Customer has desired credit limit.
If the above conditions are satisfied, order will pass and one unique transaction id will be
generated. Customer will be asked to pay the amount (= price* quantity ordered) against that
transaction id. If customer gives his/her email, he/she will receive a notification with the details
of the order. An amount outstanding will be generated and will be cleared only if the payment
from customer is received.
When an order is picked up the quantity in the inventory has to be reduced. If the order falls
below a certain quantity, a re-order mail has to be generated. After an order is placed, cash has
to be collected against the order. Once the cash is collected, the order is tagged is paid.
Customer places
order along with
required information
Company Company passes the
replenishes the order subjected to
quantity based on meeting criteria
inventory data mentioned
Payment clerk recieves
payment , matches it
against transaction id
and clears outstandings
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2. Scope:
For this version of the usage scenario, we will assume that cancellation is not possible once an
order fulfils the required criteria. Also no uncertainty regarding inventory replenishment is
assumed.
3. Actors (Stakeholders / Interests)
a) Customer: Customer can book order easily by choosing among a large variety of offers
while complying to certain criteria.
b) Payment clerk of the company: Match the received payments against transaction time
and clears amounts outstanding for the corresponding customer if everything alright.
c) Sales Manager of the company: Maintains records for each of the products e.g. Item ID,
Item Name, Unit Cost, Unit Price etc. Credit limit for the customers also decided by him
based on ratings/market perceptions.
d) Replenishment Manager of the company: Takes care of replenishment when reorder
point for a particular product is reached.
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4. Use Case Diagram
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5. Usage scenarios
5.1 Stock level
Goal/Context
Company keeps data for each of the products which can serve the purpose of a product
catalogue indicating different offering by the company.
Scenario/Steps
a) Sales Manager of the company enter different information for a particular product e.g.
Item ID, Item Name, Unit Cost, Unit Price, Stock Level (current inventory) and reorder
level (level which triggers for a replenishment).
b) It shows the message to make sure if the steps executed successfully
5.2 Sales point
Goal/Context
The customer is person from the company on whose behalf he is buying the products as a
purchase agent of that company. His goal is to place a successful order by complying with
certain norms
Scenario/Steps
a) Customer is required to fill the order following details: Company Name, User ID, Email
and Item ID and Quantity to Order.
b) Company decides to take the order or not based on the following criteria: for successful
order submission, Quantity to Order needs to be less than Units Available and also the
amount of credit should not exceed the specified limit for the customer.
c) If customer provides his email, a notification regarding amount outstanding will be mailed on
successful completion of order.
d) Company further updates data in the stock level. The stock level is reduced by the units
same as ordered by customer
5.3 Payment Form
Goal/Context
Receiving of payments from the customer against the amount outstanding through DD/Cheque
and clearing outstanding amounts for the corresponding customer
Scenario/Steps
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a) DD/Cheques are sent by the customer along with the transaction ID after procurement.
b) Company send the received DD/Cheques to its Payment clerk to verify.
c) Payment clerk receives payment, matches it against Company Name, User Name and
transaction id and clears outstanding if everything is fine.
5.4 Credit Limit
Goal/Context
Company decides credit limit for each customer based upon their rating and market
perceptions.
Scenario/Steps
a) Company choose a particular customer and searches for its credit rating.
b) Company does research if credit rating data is not available or customer is new.
Company takes the decision regarding credit rating based on its research outcome
5.5 Stock replenishment
Goal/Context
Company decides Quantity to Replenish against each Item ID based on Quantity available data.
Scenario/Steps
a) Company categories its offerings according to demand pattern and availability
b) It sets a reorder point for each product and decides quantity to replenish based on
current inventory level.
c) It intimates supplier if there is a need for replenishment
6. Remarks:
This scenario illustrates how an application can dynamically execute the order to cash cycle for
a company having several customers, along with handling backend processes like inventory
replenishments and maintaining product and customer information. Assumptions include
certainty for sourcing, availability of data to decide credit limit for customer etc which may not
be valid in real life complicated scenario. Also, the mode of payment (cheque or demand draft)
may include financial institutions, which are also kept out of consideration.
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