Kailua Kamera Shop (KKS) has 2 locations on the island of Oahu, Hawaii. The warehouse is located in Waipahu, HI, an

Kailua Kamera Shop (KKS) has 2 locations on the island of Oahu, Hawaii. The warehouse is

located in Waipahu, HI, an area north of the Honolulu airport. KKS prides themselves on

offering quality photography products and knowledgeable sales staff. KKS sells to mostly to

local professional photographers looking to purchase cameras, Lenses, filters, tripods, flashes,

and other camera gear.

When a customer decides to place an order, they order the items online from the company

website, which prompts the sale to be entered into the system and updates the sales order

transaction file. Most sales are made to customers who have previously made product inquiries.

If a new customer makes a purchase, the sales clerk will first add the new customer into the

system, then create the order. KKS sales personnel may lower the list price of an item with

manager approval during the sales process. Customers have 30 days to return goods.

A warehouse worker in Waipahu picks the goods for each order, one order at a time, based on

a daily check of the system for open orders. The warehouse worker updates the pick goods

transaction file and prints 2 copies of a pick ticket. If there is an out of stock item, the pick

will be held up until all items in the order are in the warehouse. Picked items are reviewed by

a warehouse manager, who places one pick ticket on an item in each order, then forwards

those goods to the shipping department to be shipped to the customer. The other pick ticket

is filed by date in the warehouse.

A shipping employee receives the tagged items and keys the information into the system to

update the shipping transaction file and print a shipping label. Each shipment goes directly to

the customer’s address because the store locations do not have any extra space capacity.

Shipping procedures require all tagged items from an order be shipped together the next day

using a third party carrier. An electronic shipping log is maintained by the shipping clerk and

viewable to all store locations to aid in customer inquiry. An electronic copy of the shipping log

is sent to the billing department.

Once notification of shipping is received, a billing clerk charges the customer account for 50%

of total charges. The remaining 50% will be billed in 30 days. The billing policy is standard and

applies to all customers. A cashier records the customer payments received into KKS’s main

checking account. In order to improve internal controls, KKS maintains a separate cash

accounts for each transaction cycle. An AR clerk manages past due accounts. 

Required:

Draw the REA model, with cardinalities, for the operating events, agents and resources

in the sales/collection process described above. Use crows feet notation for cardinalities.

The REA can be hand-drawn – but neatness is required. Points will be deducted for

unprofessional submissions (sloppy work, misspellings). If you use Lucid Chart – use the

Flowchart Process symbol for events