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Qmont Mining

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Introduction: Chapter 4 case 4-1: Qmont Mining:
Alice Winter’s manager gave her a project which requires her to determine how the supply systems for remote locations can be improved. Qmont has 17 remote locations. Each have their own drilling crew with a geologist or engineer that is in charge. Alice contacted the accounting department to find out how the invoices for the remote locations were paid. She found out that the accounting department paid all invoices that were submitted even if they did not have confirmation that the order was received. They do this because they demand a quick turnaround from suppliers and want to extend goodwill confidence with them. The communication between sites and their suppliers was usually done one of two ways either the site leader placed the order with head office personnel in exploration or engineering or the site leader will order directly from the supplier. If the site needs a part right away they will order from multiple suppliers hoping that they will get the part quickly to get back to work. Alice discovered that there were multiple times that the bill for airfreight was higher than the price of the item or there were multiple purchases of the same item delivered within days of each other.
Question 1. Did it make sense to start the project by looking at supplier invoices? It does make sense for Alice to start her project with looking at the supplier invoices. Her goal is to find a way to improve the supply system for remote locations. Looking at the invoices is the best way to find out the ordering patterns and helps the company track the ordered products for its remote locations. Invoices are required to have the date of purchase, price of the products, total amount due, a description of the product, and the customer’s information (AllBusiness.com). Analyzing invoices will show the products ordered for the last 4

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