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Plaskor Inc. is a manufacturer of plastic knobs for lawn and garden tractors and lawn mowers. The company has always used traditional paper-based systems to conduct transactions with its customers. For example, when a customer ordered knobs, Plaskor personnel filled out a sales order acknowledgement and mailed it to the customer. Plaskor would like to expand its business opportunities by becoming a supplier, as management believes the company can manufacture interior parts for automotive manufacturers. Automotive manufacturing companies use EDI extensively as they transact business with suppliers and expect any suppliers that they buy from to have the appropriate systems to conduct transactions via EDI. Therefore, Plaskor must buy or develop systems that would allow it to use Internet EDI. Required:

a. Describe the extra IT system risks that Plaskor should consider as it evaluates whether to buy or develop an Internet EDI system.

b. Describe the IT internal controls that should be incorporated into an Internet EDI system.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91767560

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