Q1:

BrotherBikes is relatively small but growing at a fast rate. The varied options offered either for bikes or T-shirts is attracting an increasing number of customers either big dealers or individuals.

Customers may either visit BrotherBikes 's website or showroom in order to view the latest offers of bikes and t-shirts.

When a customer decides to make a purchase or a customer submits a purchase inquiry through the website, a salesperson initiates a series of procedures to properly document the sale order and sale transaction. First, the salesperson determines the model of the selected bikes or t-shirts. Then, salesperson offers the customer a list of options. The customer may (1) purchase items off the showroom with no added features, (2) purchase items off the showroom with additional features, or (3) special order items that are not currently in the showroom.

If customers pay cash, a simple sales contract is prepared and the customer picks up the purchased items. When customers use an installment method of purchase. Before an installment purchase is authorized, the customer's credit must be verified to determine credit worthiness.

With an installment purchase, an installment agreement is prepared in addition to the sales contract. The accounts receivable clerk has arranged financing through a local bank for all installment sales. When an installment sale is made, the bank sends BrotherBikes's accounts receivable clerk a lump-sum payment equal to the price of the purchased items. Instead of making payment to the accounts receivable clerk, customers pay the bank plus interest. Once the credit is approved, the customer can take delivery of the purchased items.

Required:

a. What business process is described?

b. What resource flows (in and out) exist in this business process?

c. For each resource inflow, identify the economic event that uses it up, and for each resource outflow, identify the economic event that produces it.

d. Create an REA business process level model for this business process; make sure to include cardinalities (for relationships)

Q2:

Let's consider an enterprise called BrotherBikes. BrotherBikes manufactures bicycles and resells t-shirts.

BrotherBikes sells bikes and t-shirts to a network of customers (specialized, dealers throughout the world, individual customers). It procures raw materials for bikes from a variety of suppliers, acquires ready-made t-shirts from a set of sewing labs and it has a network of investors and creditors that allows it to support its finance.

Propose a value system level model for BrotherBikes. You may either draw a value system level model similar to Exhibit 2-2 (see text book), or you may prepare a matrix as follows:

External Business Partner

Resources Flowing From External Business Partner

Resources Flowing to External Business Partner