BUSINESS PROCESSES 2

Assignment 1.2

SUBJECT CODE: SCM-5502-0GB

DATE SUBMITTED: 12/JANUARY/2024

SUBMITTED BY: AYUSH BANGA

STUDENT NO: N01609894

INSTRUCTOR’S NAME: PROF. PARTHIBAN

DHAKSHNAMURTHY
Given Info: Price of NRG-A Bars is $1.50 per bar, and NRG-B Bars is $1.60 per bar.

SITUATION 1A Background data

Today’s date Jan. 29th
Accounts receivable balance $9,000
at start of business day,
Group 4 Inc.
Credit limit, Group 4 Inc. $15,000
Current order
Product and Quantity NRG-A; 4 cases (1,152 bars)
Ship to Group4’s headquarters
Date desired Feb. 5th
Next invoice number A1001

1.
Credit Limit = $15000
A/C receivable balance = $9000
Credit Limit left to use = $6000

Current order cost = (NRG A) 1152 bars X $1.50 = $ 1728

Total commitment = $9000 + $1728 = $10728

So, $15000> $10728, the credit limit is greater than the total commitment.

The credit will be granted

2.
Additional Order = (NRG B) 576 x $1.60 = $921.6

Total commitment = $9000 + $1728+ $921.6 = $11649.6

So, $15000> $11649.6, the credit limit is greater than the total commitment.

The credit will be granted

SITUATION 2A Background data
Today’s date Feb. 3rd
Accounts receivable balance $4,000
at start of business day,
Healthy Treats Inc.
Credit limit, Healthy Treats $7,000
Inc.
Current order
Product and Quantity NRG-B; 4 cases (1,152 bars)
Ship to Healthy Treats’ headquarters
Date desired Feb. 8th
Next invoice number A1200

3.
Credit limit = $7000
Accounts receivable = $4000

Current order cost = (NRG B) 1152 x $1.60 = $1843.2

Total commitment = $4000 + $1843.2 = $5843.2

So, $7000> $5843.2, the credit limit is greater than the total commitment.

The credit will be granted

4.
Additional order cost = (NRG A) 864 x $1.50 = $1296

Total commitment = $4000 + $1843.2 +$1296 = $7139.2

So, $7000 > $7139.2, the credit limit is not greater than the total commitment.

The credit will be denied

SITUATION 3A Background data

Today’s date Feb. 13th
Accounts receivable balance $7,000
at start of business day,
TASTY Corp..
Credit limit, TASTY Corp. $11,000
Current order
Product and Quantity NRG-A; 150 boxes (3,600
bars)
Ship to TASTY headquarters
Date desired Feb. 15th
Next invoice number A1300

5.
Credit limit = $11000
Accounts receivable = $7000

Current order cost, = (NRG-A) 3600 x $1.50 = $5400

Total commitment = $7000+ $5400 = $12400

So, $11000 < $12400, the credit limit is not greater than the total commitment.

The credit will be denied.

6.
Oder Cost = (NRG A) 3600 x $1.50 = $5400

Credit amount = $2800

Total commitment = $7000+ $5400 (-) $2800 = $9600

So, $11000> $9600, the credit limit is greater than the total commitment.

The credit will be granted