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Below is a narrative of the "Determine Requirements" portion (bubble 1.0) of the purchasing process described in Chapter 12.
Narrative Description
Bubble 1.1 receives and stores the requests received from the inventory-management process (inventory's purchase requisition) and various departments (purchase requisition-goods and services).
At predetermined intervals, bubble 1.2 accesses the accumulated requests held in the purchase requisition data; sorts the requests, perhaps by vendor or product type; and combines that data with the inventory master data to determine what purchases need to be made.
Required:
From the DFD (TB Figure 12.1) and the narrative description above, explode bubble 1.0 into a lower-level diagram showing the details of that process.
Aggregate Demand
The combined requests for goods and services across an economy, factoring in the prevailing price level for a set period.
Government Purchases
Expenditures made by the government for goods and services that directly satisfy public needs or are used to produce other goods and services.
Planned Aggregate Expenditures
The total planned spending in an economy, including consumption, investment, government purchases, and net exports at a given level of income.
Net Taxes
The difference between total taxes levied by the government and the total transfer payments and subsidies it pays out.
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