You Have Been Hired by a Catalog Company to Computerize

question 41

Essay

You have been hired by a catalog company to computerize its sales order entry process.Approximately 70% of all orders are received over the telephone by a sales person.The other 30% of orders are received by a sales person through mail or fax.The catalog company wants the phone orders processed real-time.The mail and fax orders will be processed in batches of 50 orders.The following attributes are collected for every sales order:
Customer number (if the order is from a new customer,a new number needs to be assigned)
Customer name
Address
Payment method (credit card for phone and fax orders and check for mailed orders)
Credit card number and expiration date
Items ordered and quantity of each
Unit price of each item ordered
Identify and describe at least ten specific control policies and procedures you will implement for the sales order process.Be very specific describing the controls and number each new control you suggest.

Understand the basic principles of revenue management and pricing elasticity.

Apply nonlinear optimization techniques and model formulation to solve business problems.

Comprehend the concepts of Lagrange multipliers and their application in optimization.

Recognize different optimization algorithms and their appropriate applications.

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Definitions:

Change in Demand

A shift in the demand curve, due either to changes in consumer preferences, income levels, prices of related goods, or other factors, affecting the quantity demanded at any given price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level, within a specific time frame.

Law of Supply

An economic principle stating that as the price of a good or service increases, the quantity supplied of that good or service also increases, and vice versa, all else being equal.

Law of Demand

A principle that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers.