Question

The Computer Warehouse purchases its inventory from more than a dozen different vendors. Orders are placed via telephone, fax, or on the supplier’s Web site. Most orders are delivered the next day. Most orders are filled completely in one shipment, but sometimes a supplier is out of stock of a particular item. In such situations, the bulk of the order is shipped immediately and the out-of-stock item is shipped separately as soon as it arrives (such shipments of back orders are never combined with any new orders placed by the Computer Warehouse). The Computer Warehouse pays for some of its purchases COD but usually pays by the 10th of the month in one check for all purchases made the prior month. None of its suppliers allows it to make installment payments.

Draw an REA Diagram for Computer Warehouse expenditure cycle, complete with min & max cardinalities.

Answer 1

Inventory Order Inventory Employee H Vendor Receive Inventory H HI Employee Cash th Disburse Cash H Vendor