Question 1:

Scenario:

You have been hired to develop an information system for Marcy's Munchies. A small retail food outlet in Auckland owned by Marcy Backhurst. She buys her stock in small quantities, primarily from discount supermarkets like "PAK'nSAVE". Seeing that everything is now bar-coded, she would like to invest in a system that would allow her to keep track of the stock that she sells, how fast she sells it, and make sure that the computer can automatically let her know when re-orders are necessary. She needs to be able to print out a list of goods that she might require on her next trip. As such, most of her stock comes in this way, but there are some items which are more regular (such as newspapers, which she is invoiced for), and some others are delivered (after sending an order by email) and payment is (again) by invoice. For the last item, all items ordered come at once. During her day, she finds that much of the activity is done between rush hours, and so she likes to peruse the local paper and see what bargains the different supermarkets are offering (and from what period). These she would like to keep track of on her computer so that when she does get a printout, it can make a suggestion as to where to purchase goods from. Marcy has no credit customers.

1. Draw an REA diagram based on the assignment scenario. You do not need to submit this diagram. You will use the diagram to creeate a database.

2. Create a relational database for Marcy's Munchies that is based on your own REA diagram. Creatte the database using Microsoft ACCESS. Insert two records into each table (crreate your own data).

3.

a. Discuss three advantages for Marcy's Munchies of using a database that is designed using the REA approach, relative to a traditional accounting system consisting of journals and ledgers.

b. Discuss three new risks/costs to Marcy's Munchies that could result from using the new database system relative to a traditional accounting system consisting of journals and ledgers.

c. Discuss three more pieces of information that you believe would be useful to include in a database for a business like Marcy's Munchies and explain why the information would be useful.