Business Processes Summarized Sales Collection Process Event ✓ Solved

Business Processes Summarizedsalescollection Processeventsmarketing

Complete an REA model with minimum and maximum cardinalities of the business process (transaction cycle) you will be prototyping for your System Project. Make up a company in your assigned industry. Create a narrative for your transaction cycle—briefly explain how that transaction cycle works in your company. Complete an REA model with minimum and maximum cardinalities with one complete transaction cycle, and design two many-to-many relationships in your REA model. Identify two related events connected by a relationship line for your system project, based on your narrative. Your REA model should include your complete transaction cycle; your final project will only require prototyping the two selected events (and related agents & resources). The final model should be professional and detailed, capturing a realistic business process with sufficient complexity to warrant critical thought.

Sample Paper For Above instruction

In this paper, I develop an REA (Resource-Event-Agent) model for a mid-sized retail company specializing in home furnishings. The company's primary transaction cycle involves customer orders, inventory management, shipping, and payment collection. The process begins when a customer places an order, which initiates the sales event. This is followed by inventory allocation and shipping, culminating in the customer receiving the merchandise. Upon delivery, the customer makes a payment, which is recorded as a payment event. Conversely, returns and allowances are processed when customers request refunds or exchanges, affecting accounts receivable. The company also maintains various documents such as sales orders, invoices, shipping documents, and customer statements to facilitate transaction tracking and reporting.

The narrative illustrates a typical sales and collection process with clear segregation of events and resources, maintaining integrity through appropriate controls and documentation. For instance, shipments occur only after customer orders are approved and inventory is available, preventing unauthorized or incorrect shipments. Payments are credited only upon receipt of cash, and any returns are properly authorized and documented. This cycle captures the critical components of retail sales operations, emphasizing control points and resource flows.

The REA model visually depicts the relationships among events, agents (customers, employees), and resources (inventory, cash). It includes minimum and maximum cardinalities, such as one customer order being associated with multiple shipments (1:N), while each shipment is linked to a single order (N:1). The many-to-many relationships include scenarios like multiple payments being associated with a single customer, and multiple returns linked to a single sale. Two key events, 'Customer Order' and 'Receive Customer Payment,' are connected, indicating that payments are received in response to sales. These relationships are critical for ensuring accurate data modeling and system control.

For the system project, I selected the 'Customer Order' and 'Receive Customer Payment' events due to their central role and the complexity of their relationship, involving multiple payment transactions per order and vice versa. This connection reflects real-world scenarios where customers may make multiple partial payments or settle balances over time, requiring robust management in the system.

The model is designed to be detailed enough to simulate actual business operations, incorporating validation points and control mechanisms. It ensures that each event is properly linked and that the relationships support effective reporting and system testing. This analytical approach facilitates a comprehensive understanding of the business cycle and provides a solid foundation for system implementation and prototype development.

References

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