Order processing context: Information about the items ordered (such as item description, price, and warehouse location) is primarily provided by which subsystem in an integrated business information system?

Difficulty: Easy

Correct Answer: order entry subsystem

Explanation:


Introduction / Context:
When a customer places an order, the data required to validate and price that order must be fetched quickly and accurately. Typical fields include item description, list or contract price, and the warehouse/bin locations used for picking. In modern ERP environments, the order entry (or order management) function orchestrates these lookups by referencing product master and inventory records in real time.


Given Data / Assumptions:

  • We are focusing on the subsystem that provides item details during order capture.
  • The order screen must display correct descriptions, pricing, and stock/location data.
  • Downstream processes (billing, manufacturing) consume order data but are not the primary source during entry.


Concept / Approach:
The order entry subsystem acts as the front door to item information for sales transactions. It calls into product master data for descriptions and pricing logic (price lists, discounts) and consults inventory/location files for availability and warehouse pick locations. Manufacturing systems plan production from orders; marketing systems analyze demand and promotions; billing generates invoices after fulfillment. None of those is the primary on-the-spot provider of item metadata during capture.


Step-by-Step Solution:

Identify the moment of need: at order capture on the sales screen. Determine which subsystem queries item master and inventory in real time. Note that manufacturing, marketing, and billing are downstream/adjacent consumers. Select “order entry subsystem.”


Verification / Alternative check:
ERP documentation (e.g., “Sales Order Entry”) shows automatic item description and price retrieval, ATP checks, and warehouse/location suggestions performed by the order entry component.


Why Other Options Are Wrong:
Manufacturing plans work; marketing analyzes markets; billing issues invoices post-shipment. They do not primarily supply item metadata at entry time.


Common Pitfalls:
Hard-coding item details in the screen; failing to link to master data leading to inconsistent pricing and descriptions.


Final Answer:
order entry subsystem

More Questions from Management Information Systems

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion