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Rea Explanation

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Submitted By HannaFernan
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Now that my group mate just explained step 1 and step 2 of building an REA diagram which include the determination of events, agents and resources respectively. Lets move on to the step 3: determination of cardinalities.
Cardinalities describe the nature of the relationship between the entities and are represented by the Row'`s foot notation. Circle means 0, stroke means 1 and crow`s foot means many.
1) Step by step. For this relationship we have this cardinalities. For each inventory type, the minimum inventory order and inventory receipt is zero, because if you dont purchase there will be no inflow of inventory and the maximum is many, because it can be more than one inventory item per order.
2) The inverse relationship shows that per each inventory order and inventory received there could be a minimum of one inventory associated and a maximum of many. for obvious reasons you can buy more than one
3) Next is a bit trick. We have to remember that order inventory is a commitment event, and when commitment events are linked to other events they reflect a cause and effect relationship . In this case the order will cause the receipt to happen, thats why the maximim will be one in both sides, however the inventory receipt will be the minimum for each other because in the case of ice cream you may not receive the inventory since delivery happnes in the next day. And for each received inventory the minimum order is also zero, because in the case of ordering toppings you dont have the commitment since the order is received at the same time when you are buying in the local stores.
4) in this case, for each received inventory there will be a min of 0 cash disbursement, because in the case of ice cream you only pay biweekly and not when you purchase or receive it, and the maximum of one because there can be only one payment for each inventory received. there can be a minimum of 1 and maximum of more than one inventory receipt per each cash disbursement because you can pay many inventories at the same time.

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