Experiencing MIS
Experiencing MIS
8th Edition
ISBN: 9780134792736
Author: KROENKE
Publisher: PEARSON
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Chapter 2, Problem 7CE

Explanation of Solution

Returning allocated inventory:

  • Inventory is allocated for determining if future orders have available inventory.
  • The allocated inventory must be returned when an order is rejected due to unapproved credit or special terms.
  • The customer will be notified that the order was not approved if credit or special terms are not approved.
  • The customer can then resubmit the order and the new credit limit will be checked.
  • A notification of the rejected order will be sent to the person who releases the reserved inventory for the order...

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