Use a flowchart to illustrate the activities and parties that Walter would have involved during the purchasing process of the folding machine. The Folding Machine IssueThe office of registrar handled about 160,000 pieces of mail a year. There were four major peaks ofmailings each year: fees, admissions, records, and scholarships. As many as 50 to 60 people could beoccupied manually stuffing envelopes two days a month. A combination of full-time employees andtemporary staff was used to perform this activity.Walter Charbonneau had seen an advertisement in a flyer for an automatic folding machine, which couldbe used to eliminate some of the manual work in dealing with mass mailings. He later contacted arepresentative of the company and placed an order for the machine, at a cost of $14,000. Glen wasnotified shortly after the machine had arrived because Walter needed to make arrangements for payment.As far as Heather knew, the machine had arrived only in the last few days and had not been installed.Heather found that the supplier of the folding machine was not on her approved supplier list. She thencontacted three of her suppliers and received quotes of $10,000, $11,000, and $15,000 for similarequipment. The third quotation included one year of free service.Heather's OptionsHeather recognized that some employees were going to ignore university policy from time to time andshe had to be prepared to deal with such situations. However, if university staff failed to appreciate thebenefits of sound purchasing practices, the university's centralized purchasing system would beundermined. When she spoke to Glen Meredith about the situation two days earlier, he said: "Let meknow what we should do about this machine in the registrar's office. But also think about what else wecan be doing to prevent these kinds of situations from happening again. These bad deals cost theuniversity too much money each year. Besides, as a public institution, we must be extra careful to followour procedures."There were a number of alternatives Heather was considering regarding the equipment. One option wasto simply keep the machine and pay the supplier. However, she felt the equipment could be returned,and if necessary she could negotiate a cancelation penalty with the supplier. Alternatively, Heather couldgo back to the supplier and use the quotations to negotiate a lower price.Heather had about four hours before her meeting with Glen. As she sat down to prepare for the meeting,Heather thought about what she might say to Glen regarding avoiding future problems of this kind.|| Southeastern UniversityHeather Sioman, buyer in the purchasing department of Southeastern University, was preparing for ameeting with her boss, Glen Meredith, for later that day. Two days earlier, on April 6, Glen had receiveda phone call from Walter Charbonneau, manager of the university registrar's office. Heather wassurprised to learn from Glen that Walter had just bought a new piece of equipment for his departmentwithout following standard university purchasing policies. Glen asked Heather to look into the situationand get back to him with recommendations.Purchasing DepartmentSoutheastern University was one of the largest universities in the state. Purchasing was centralized, andthe purchasing director, Blake Hyatt, reported to the university's vice president of administration. Thepurchasing department was responsible for negotiating with suppliers, signing contracts with suppliers,and supervising the execution of contracts. Small-value purchases, those less than $100, could behandled out of petty cash. The purchasing department had also recently introduced a purchasing card,which could be used to acquire eligible goods and services with a value of less than $1,000.The purchasing process began when a purchase request was submitted to the purchasing department.A clerk would stamp the requisition with the date and time received and checked it for proper signingauthority.some cases, it was necessary to forwardrequisitionaccounting sectionin the department of finance for account approval. Other information also was added to the requisition,such as tax and duty status, product classification, and supplier status.Although the purchase requisition form provided an opportunity for the requisitioner to identify thepreferred supplier, the policy was to solicit at least two written quotations for purchases in excess of$7,500 and a minimum of three quotations for purchases in excess of $15,000. One of the buyers wouldprepare a request for quotation form (RFQ) and contacted approved suppliers. The RFQ form specifieddetails, such as product or service description, quantities, FOB point, and terms of payment. Recentgovernment legislation required that any RFQS in excess of $100,000 had to be posted on the Internet.After all bids were received and evaluated, the buyer would select the supplier and issue a purchaseorder.The purchasing department maintained a list of approximately 1,200 approved suppliers, which wasadjusted every three to five years. According to Heather Sloman, the main objective of the purchasingdepartment was to achieve the greatest cost savings. She commented on the role of purchasing at theuniversity: "Our training in purchasing allows us to negotiate the best deals for the university and helpavoid wasting university money."Although it was university policy that approval from the purchasing department was required beforecommitments could be made to suppliers, it was not unusual that university personnel contacted suppliersdirectly. Every year there were about 275 cases where contracts were signed with suppliers without priorapproval of purchasing. Heather described what happened in these situations: "Most of the time, the onlything we can do is to call them and ask them to provide the details of the purchase. Usually the purchasehas already been made, and there isn't much else that can be done."

Question

Use a flowchart to illustrate the activities and parties that Walter would have involved during the purchasing process of the folding machine. The Folding Machine IssueThe office of registrar handled about 160,000 pieces of mail a year. There were four major peaks ofmailings each year: fees, admissions, records, and scholarships. As many as 50 to 60 people could beoccupied manually stuffing envelopes two days a month. A combination of full-time employees andtemporary staff was used to perform this activity.Walter Charbonneau had seen an advertisement in a flyer for an automatic folding machine, which couldbe used to eliminate some of the manual work in dealing with mass mailings. He later contacted arepresentative of the company and placed an order for the machine, at a cost of $14,000. Glen wasnotified shortly after the machine had arrived because Walter needed to make arrangements for payment.As far as Heather knew, the machine had arrived only in the last few days and had not been installed.Heather found that the supplier of the folding machine was not on her approved supplier list. She thencontacted three of her suppliers and received quotes of $10,000, $11,000, and $15,000 for similarequipment. The third quotation included one year of free service.Heather's OptionsHeather recognized that some employees were going to ignore university policy from time to time andshe had to be prepared to deal with such situations. However, if university staff failed to appreciate thebenefits of sound purchasing practices, the university's centralized purchasing system would beundermined. When she spoke to Glen Meredith about the situation two days earlier, he said: &#34;Let meknow what we should do about this machine in the registrar's office. But also think about what else wecan be doing to prevent these kinds of situations from happening again. These bad deals cost theuniversity too much money each year. Besides, as a public institution, we must be extra careful to followour procedures.&#34;There were a number of alternatives Heather was considering regarding the equipment. One option wasto simply keep the machine and pay the supplier. However, she felt the equipment could be returned,and if necessary she could negotiate a cancelation penalty with the supplier. Alternatively, Heather couldgo back to the supplier and use the quotations to negotiate a lower price.Heather had about four hours before her meeting with Glen. As she sat down to prepare for the meeting,Heather thought about what she might say to Glen regarding avoiding future problems of this kind.|| Southeastern UniversityHeather Sioman, buyer in the purchasing department of Southeastern University, was preparing for ameeting with her boss, Glen Meredith, for later that day. Two days earlier, on April 6, Glen had receiveda phone call from Walter Charbonneau, manager of the university registrar's office. Heather wassurprised to learn from Glen that Walter had just bought a new piece of equipment for his departmentwithout following standard university purchasing policies. Glen asked Heather to look into the situationand get back to him with recommendations.Purchasing DepartmentSoutheastern University was one of the largest universities in the state. Purchasing was centralized, andthe purchasing director, Blake Hyatt, reported to the university's vice president of administration. Thepurchasing department was responsible for negotiating with suppliers, signing contracts with suppliers,and supervising the execution of contracts. Small-value purchases, those less than $100, could behandled out of petty cash. The purchasing department had also recently introduced a purchasing card,which could be used to acquire eligible goods and services with a value of less than $1,000.The purchasing process began when a purchase request was submitted to the purchasing department.A clerk would stamp the requisition with the date and time received and checked it for proper signingauthority.some cases, it was necessary to forwardrequisitionaccounting sectionin the department of finance for account approval. Other information also was added to the requisition,such as tax and duty status, product classification, and supplier status.Although the purchase requisition form provided an opportunity for the requisitioner to identify thepreferred supplier, the policy was to solicit at least two written quotations for purchases in excess of$7,500 and a minimum of three quotations for purchases in excess of $15,000. One of the buyers wouldprepare a request for quotation form (RFQ) and contacted approved suppliers. The RFQ form specifieddetails, such as product or service description, quantities, FOB point, and terms of payment. Recentgovernment legislation required that any RFQS in excess of $100,000 had to be posted on the Internet.After all bids were received and evaluated, the buyer would select the supplier and issue a purchaseorder.The purchasing department maintained a list of approximately 1,200 approved suppliers, which wasadjusted every three to five years. According to Heather Sloman, the main objective of the purchasingdepartment was to achieve the greatest cost savings. She commented on the role of purchasing at theuniversity: &#34;Our training in purchasing allows us to negotiate the best deals for the university and helpavoid wasting university money.&#34;Although it was university policy that approval from the purchasing department was required beforecommitments could be made to suppliers, it was not unusual that university personnel contacted suppliersdirectly. Every year there were about 275 cases where contracts were signed with suppliers without priorapproval of purchasing. Heather described what happened in these situations: &#34;Most of the time, the onlything we can do is to call them and ask them to provide the details of the purchase. Usually the purchasehas already been made, and there isn't much else that can be done.&#34;

Accepted Answer

The values that are to be used in the flowchart from the given case are listed below.

Budget…