↓ BBB Finished Goods Inventory BBB tracks its inventory by catalog number (catalog#). Each product is identified by color code, its use (e.g., tops or bottoms), and its 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. Since BBB produces to order, the beginning quantity on hand of each item is zero. The quantity on hand increases when BBB produces the finished products and then decreases as it ships the products to the retailers to fill orders. Those two events happen so close together, BBB does not track the quantity on hand for its finished goods inventory. Exercise Requirements 1. Based on the preceding information, follow the steps outlined in Chapter 4 to create a business model using BPMN that describes BBB's Sales to Retailers process. a. The purpose of the model is to describe BBB's current sales process in preparation for business expansion. b. Prepare a context diagram that shows three participants: BBB, retailer customers, and sales representatives and the message flows between them. C. Outline the basic process flows and allocate the activities to lanes within the BBB pool. Add the Retailer Customers pool and show the message flows between BBB activities/events and the Retailer Customers. d. The next steps in the process are to define the activities, refine the model adding detail, and validate the model with stakeholders (your fellow students and instructor). Students are encouraged to complete those steps on their own. 2. Based on the BBB process description and the attributes list at the end of the lab, prepare a UML class model for BBB's sales to retailers. Review Exercise: Baer Belly Bikinis' Sales to Retailers This review exercise examines the sales process for Baer Belly Bikinis Inc. (BBB), 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 (outside the scope of this lab). 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 is still learning about accounting and information technology. As the business grew, she recognized the importance of both. So, she is looking forward to an assessment of her requirements and recommendations that would position BBB for continued growth. First, Paige described 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 after delivery. BBB offers a prompt payment discount for payment within 10 days. The following material summarizes BBB's activities for their sales process. BBB Sales BBB sales representatives (independent agents working on commissions) visit retailers to develop sales. (BBB's payment of commissions to sales representatives is outside the scope of this case, although you should include the Sales Reps in your model and database.) BBB's retailer customers work with the sales representatives to place orders that usually request delivery within 30 days. A BBB customer service employee records sales orders and requested delivery dates. BBB confirms retailers' financial viability before they place any orders. BBB uses automated equipment to produce its swimwear and related products. The production staff prepares each order separately Page 307 to meet requested delivery dates. When production is complete and the products are packaged, production staff transfers the products to shipping. The shipping department then schedules and ships products to retailers. Retailers' payments are due 30 days after delivery and include shipping costs. Some retailers pay late. Some take advantage of the prompt payment discounts. A BBB accounting employee records revenue when the products are shipped. 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, meaning they receive a 2% discount on any amount they pay within 10 days with the net balance due within 30 days). The payment from the retailer customer always applies to only one order, but sometimes the retailers send multiple checks for that order. A BBB accounting department employee 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.