Analysis of ordering system for a fitness club

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There are no receipts because the fitness club records all the times that members come in and out on the record book. Stock Control In Exercisco when a equipment is damaged or is not repairable then the Fitness club orders knew equipment by communicating with the supplier by telephone and notifying them out what kind of equipment is needed and when it is needed by. The staff will note down when the stock arrives and if it has arrived. But the bad point is that they can’t pay the supplier or the supplier can’t give them the bill straight away they have to either mail it or go straight to the supplier and give it to them face to face.

Another bad point is that if they some how loose the paper where they had noted down the costs and the amount, and then they wouldn’t be able to know how many their supposed to receive, and the cost of all of the equipment. People Involved The people involved with Exercisco fitness club are the staff firstly, then the suppliers. When talking about staff there are different types of staff because there are different jobs required for the fitness club.

So there is a staff member at the counters noting down the members joining the members who check in and out to work out, the staff at the counter should be good at writing so the writing is clear and readable. Plus the staff member should be nice and friendly. And should have a good knowledge of where to put personal information and fitness course information. There is also a staff member taking care of the members he will look to make sure all the members are safe, sometimes more than one person observing, he is required to be strong so he can help members, and required to be good at First Aid.

The supplier is an important source to Exerciso Fitness club because is it required to send any equipment when it is ordered from the Fitness club. Analysis Finances Record of Sales In Exercisco Fitness Club, there are fixed costs for working out in the club. In the last 4 months of the business the sales have been recorded by each week so the business can get a clear understanding of how the sales have been going on and what downfalls there are.

They record all the sales in a week onto a table, they do this by calculating the total number of members used the equipment and how many hours they had stayed in the club and how much the total cost is for that day, they combine this into the week and plot it on a paper. They keep this paper in a separate cabinet which is locked. After they have recorded the sales per week they then combine this into a month on a different table, they do the week sales because it shows more accuracy of which days there is a different number of sales for some specific reason.

There are specific costs which the fitness club has to pay for, which are variable and fixed cost. Variable costs are costs which things needed, so if they business needs more pens or pencils then it will order them. Whilst fixed costs is costs like renting the fitness club area, so even if the fitness club is not receiving enough profit or cash flow they still have to pay the rent. Some other fixed costs are electricity bill, staff salaries per year, and also Exercisco fitness clubs hires mechanics to come in and check each equipment to make sure there is no damage so that the member will not be hurt in any way.

Some variable costs are new equipment; this is a variable cost because the club will only purchase new equipment if the old is damaged or un-repairable. Also stationary which is used by staff to note down on paper and use pens etc. But the wages of staff is also a variable cost because they are paid monthly wages depending on how the business has done but the overall yearly wages is kept the same. Forecasting of Profit/Loss Exercisco currently records its Profit and Loss by doing a Cash Flow forecast; they can use this to predict if there is going to be any profit or loss in the net 12 months.

The fitness club hires an accountant from an agency to produce the forecast, and show the fitness club, and then the fitness will know when they need to get an overdraft from the bank. An overdraft is a loan from the bank, but it is only borrowed when there is an emergency, and the club can tell the bank after reading the cash flow forecast when they need the overdraft. And an overdraft is a loan which is more than what is in our bank account, plus there is a much higher interest rate. How the information is currently recorded and where it is kept

Exercisco first gathers all the bills received from renting agencies and the bills for the electricity from other electric supplier companies. Then the club gathers puts together the table about the record of sales and makes sure it is correct by counting the money received from the member. When the fitness club has produced the forecast sheet and all the fixed cost and variable costs, then they gather it together and produce a large file containing all the information related to finance.

Exercisco first gathers all the bills received from renting agencies and the bills for the electricity from other electric supplier companies. Then the club gathers puts together the table about the record of sales and makes sure it is correct by counting the money received from the member. After all the information is gather into one file, it is stored in desk draw under the counter, this draw is locked, but can be very easily opened, so the security for this is not very good considering there are important facts and predictions about the business.

People Involved and their requirements There are 2 types of people involved, the first one would be the staff member or manager who records the sales and expenses this person is required to properly record it on to a book when each member pays for the time they have spent using the equipment. The second type of person would be the accountant who is hired by the club from a firm, this accountant is required to collect the sales and expenses from the staff member and predict a cash flow forecast and show the manager, so they can have a clear knowledge of where there has to be action take.

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