Question

Baer Belly Bikinis Inc. (BBB ) is a small business located in...

Baer Belly Bikinis Inc. (BBB ) is a small business located in Santa Monica, California. It sells swimwear and related products to specialty stores throughout the United States. It also sells its products to individuals over a company website. Paige Baer founded BBB almost 10 years ago after she graduated from the Fashion Institute of Design and Merchandising. She recognized the need for swimsuits sold as separates. Her business has grown rapidly, and now BBB has a large following of customers who want to be able to mix and match to find their ideal swimsuit. Currently, BBB products are carried in more than 1,000 specialty swimwear boutiques and online retailers.

During an initial interview with Paige Baer, she outlined BBB's business processes. She acknowledged that she doesn't know much about accounting and information technology. As the business grew, her accounting suffered and information systems were added piecemeal. So, she is looking forward to an assessment of her requirements and recommendations that would position BBB for substantial further growth.

This case examines BBB sales to independent boutique retailers. BBB uses a group of independent sales representatives to sell its products to boutique retailers around the country. These sales representatives are not BBB employees. They are paid commissions based on the dollar volume of sales. After working with the sales representatives, individual retailers call BBB to place their order for the upcoming season. BBB will then ship the products when they become available. The retailers are expected to pay for shipments within 30 days. BBB offers a prompt payment discount for payment within 10 days.

The following material summarizes BBB's activities to prepare for and conduct the sales process:

Summer

BBB finalizes designs for next year's products and prepares catalog materials with information on its future products.

Fall to Spring

BBB sales representatives (independent agents working on commissions) visit retailers to develop sales. BBB's payment of commissions to sales representawtives is outside the scope of this case, although you should include the Sales Reps in your model and database. ric25494_ch05_101-127.indd 118 ic25494_ch05_101-127.indd 118 6/7/13 7:59 PM /7/13 7:59 PM Final PDF to printer Chapter 5 Sales and Collections Business Process 119

BBB's retailer customers place orders for one of two deliveries in season: (1)early spring (April) and (2) early summer (May/June). BBB records information on its retailers before they place any orders. Upon receipt of finished goods from their manufacturer in April and May, BBB ships products to retailers.

Retailers' payments are due 30 days after shipment and include shipping costs. Some retailers pay late. Some take advantage of the prompt payment discounts.

BBB Finished Goods Inventory

BBB tracks its inventory by catalog number (catalog#). Each product is identified by color code, use (e.g., tops or bottoms), and type (e.g., the specific design of the piece). The color codes reflect the color and fabric design options, and they can change each year. At the beginning of the season, the quantity on hand of each item is zero. The quantity on hand increases when BBB gets deliveries from its manufacturer (outside the scope of this case) and decreases as it ships the products to the retailers to fill orders.

BBB Shipments

BBB makes one shipment for each retailer order and records revenue when the products are shipped. Warehouse employees prepare the shipments. All shipments are made under BBB's contract with a shipping company. BBB charges customers for the cost of the shipment, so the amount due from the retailers depends on the wholesale price of each item, the quantity shipped, and the shipping cost for the shipment. Payments to the shipping company are outside the scope of this case.

BBB Cash Receipts

Retailer customers send payment by check according to the payment terms (BBB standard payment terms are 2% 10 days net 30). The payment from the retailer customer always applies to only one order, but sometimes the retailers send multiple checks for that order. A BBB employee (accounts receivable) logs cash receipts from retailers. At the end of the day, the cash receipts are deposited intact into one bank account (BBB's main account). Each cash receipt is tracked by unique sequential cash receipt number.

Exercise Requirements

1. Based on the preceding information and the following attributes list, prepare UML class model and corresponding table listing describing BBB's sales to retailers. List the tables in following order: resources, events, agents, type images, and linking tables. Identify the primary keys and foreign keys in each table.

2. Based on the preceding information, prepare BPMN activity model that describes BBB's Sales to Retailers process. The model should begin with retailers placing orders and end when BBB collects payments for the sales to theretailers.

3. Your instructor will provide an Excel spreadsheet with the BBB information. Create new Access database, and import each worksheet in the spreadsheet into the database. Set appropriate primary keys.

4. After importing all the data, create relationships among tables to implement your data model.

5. Prepare queries to answer the following questions:

a. What was BBB's total revenue?

b. What is BBB's account receivable balance for each retailer customer as of the end of June?

c. Which BBB product generated the largest sales volume? (List all products in descending order of sales dollars).

Attribute Listing for BBB

Bank Name

Cash

Account Balance 4/1/13

Cash Account Description

Cash Account#

Cash Receipt#

Customer Address

Customer

City

State

Zip

Customer Name

Customer Phone

Customer#

Delivery Date

Employee Address

Employee City

Employee Department

Employee First Name

Employee Hire Date

Employee Last Name

Employee Pay Amount

Employee Phone

Employee Salary/Wage

Employee Zip

Employee#

Fabric Color Code

Fabric Color Name

Fabric Cost per Yard

Finished Inventory Catalog#

Finished Inventory Description

Finished Inventory Quantity on Hand

Flat Rate Ship Charge

Inventory Type Use

Order Date Order

Date Order

Employee#

Order#

Quantity Ordered

Receipt Amount

Receipt Date

Requested Date

Retail Price

Sales Rep Area

Sales Rep

Email Address

Sales Rep Name

Sales Rep Phone

Sales Rep#

Ship Date Shipping

Employee#

Shipping Cost

Size of Inventory Item

Standard Cost of Inventory Item

Supervisory Employee#

Type Code

Wholesale Price

Yards Fabric Required for this Inventory Type