Create Your Algorithm Using Pseudocode That Determines If A

Create your algorithm using pseudocode that determines if a department store customer has exceeded their credit limit.

You work in the IT group of a department store and the latest analytics shows there is a bug that allows customers to go over their credit limit. The company's president has asked you to develop a new algorithm to solve this problem. Create your algorithm using pseudocode that determines if a department store customer has exceeded their credit limit. Be sure you gather the following inputs from the user: Account number, Balance of the account, Total cost of all the products the customer is looking to purchase, Allowed credit limit. After you gather the inputs, make sure your algorithm calculates if the user can purchase the products and provides a message to the user indicating if the purchase is approved or declined.

Paper For Above instruction

Developing a Pseudocode Algorithm to Prevent Credit Limit Breaches in a Department Store

The challenge faced by the department store's IT department involves ensuring that customers do not surpass their credit limits during transactions. To address this, a clear and effective pseudocode algorithm must be designed. This algorithm will gather essential customer data, process the given inputs, and provide an immediate decision regarding purchase approval. A systematic approach to this problem not only prevents credit breaches but also enhances customer trust and operational efficiency.

Introduction

In retail environments where credit accounts are used, maintaining control over the credit limits is crucial. Failure to do so can lead to financial losses and legal issues. The primary goal of this algorithm is to verify whether a customer's intended purchase exceeds their allocated credit limit. The implementation of a robust pseudocode algorithm ensures that transactions are validated in real-time, preventing overspending and maintaining the integrity of credit management systems.

Designing the Algorithm

The algorithm begins with gathering key inputs from the customer and the system: the account number, current account balance, total cost of the items the customer wishes to purchase, and the permissible credit limit. Using this data, the algorithm calculates the projected new balance if the purchase proceeds. It then compares this projected balance with the customer's credit limit to determine approval status.

Step-by-Step Pseudocode

START


PROMPT user for AccountNumber


PROMPT user for Balance


PROMPT user for TotalPurchaseCost


PROMPT user for AllowedCreditLimit


SET ProjectedBalance = Balance + TotalPurchaseCost


IF ProjectedBalance 

DISPLAY "Purchase Approved. You may proceed with your transaction."


ELSE


DISPLAY "Purchase Declined. Your credit limit will be exceeded with this purchase."


ENDIF


END

Analysis of the Algorithm

This pseudocode effectively encapsulates the logic required to prevent credit limit breaches. It ensures that the system makes an immediate and accurate decision based on current account status and intended purchase. By doing so, it minimizes the risk of manual errors and enforces financial discipline automatically. Furthermore, the simplicity of the logic facilitates straightforward implementation in various programming languages, which can then be integrated into the store’s checkout systems.

Benefits of Implementing This Algorithm

  • Prevents overspending, safeguarding the store’s financial interests.
  • Makes real-time decisions, improving customer service efficiency.
  • Reduces manual oversight, ensuring consistency and reliability.
  • Provides clear feedback to customers, enhancing user experience.

Additional Considerations

While the core pseudocode is simple, actual implementation could involve additional features such as input validation, error handling, and integration with existing databases to verify current account status. Moreover, the algorithm can be enhanced to include notifications or alerts for customers nearing their credit limit, fostering better financial management and customer engagement.

Conclusion

Developing a pseudocode algorithm that effectively checks if a customer has exceeded their credit limit is vital for maintaining financial control in retail operations. The presented pseudocode provides a clear, quick, and accurate method to determine transaction eligibility, supporting the store’s goal of preventing credit violations and ensuring customer transactions are processed smoothly and securely.

References

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