Builders Warehouse sells building material and plumbing equipment to individual as well as corporate customers. Individual customers are typically walk-in customers who pay for their purchases before leaving the store. Corporate customers often have accounts with Builders Warehouse and these customers prefer to call through their orders, have them made up, and then send a driver to collect the items. These types of corporate purchases are charged to the accounts of the corporate customers. At the end of the month, the corporate customers can either pay off the entire balance on the account, or they can pay off the balance over a period of three months. The arrangement with corporate customers is that all payments should be made via EFT. 

REQUIRED (a) 

Draw an REA diagram for the revenue cycle of Builders Warehouse. Include all entities and cardinalities. Builders Warehouse places inventory orders via the web sites of their suppliers. In most cases, the orders are filled in a single shipment. However, sometimes there might not be sufficient stock at the supplier and then the available items are shipped, while the items that are not immediately available are shipped as soon as each arrives at the suppliers. The shipment of these items can also be combined with any other orders placed by Builders Warehouse. Builders Warehouse pays all the previous month's orders by the 15th of the month and the arrangements with suppliers are that some orders may be paid over a period of two months. 

REQUIRED (b) 

Draw an REA diagram for the expenditure cycle of Builders Warehouse. Include all entities and cardinalities.

Answer rating: 100% (QA)

Answer a a We need to prepare the REA diagram just like an ERD diagram with the only difference bein... View the full answer