REA MODEL

REA Model-Case Study



REA Model-Case Study

Description of the problem

At present, Barry's Plumbing is facing three different sorts of problems in their Business cycle. Initially the problem lies in the orders of Brach Managers. When a stock needs to be replaced each branch manager is supposed to send request for stock to Sydney office. These requests by the branch managers are not ordered in a timely manner. This major fault in the system of Barry's plumbing leads the branches of the company to undergo problem of both over and under stocking of goods used in the services of Barry's Plumbing. Secondly, the other problem of the company lies within communication within the company employees. Since, the company faces the problem where they are charged with penalties in case their representative is late for each 15 minutes time interval. At present, the company is using all sort of cellular services for communication purpose. This way of communication sometimes fails to provide an efficient way to communicate with the employees of the Barry's Plumbing. The third and the last problem lie with the inaccurate invoices. This problem can be seen as a result of tradesmen inaccuracy and some other factors that were not involved while designing such faulty business cycle.

REA Model of the System

Solution objectives

The Objective of the solution for the REA model of Barry's Plumbing is to improve the efficiency of the whole system. The present REA model of Barry's Plumbing is somehow complex enough to create fault in the whole system of the business cycle. First of all Barry's plumbing have to create a system in which the inventory orders of managers of both branches i.e. Newcastle and Brisbane will have to be recorded in timely manner. This will remove the first concern of both branches of Barry's Plumbing regarding their inventory. The main objective is to remove the concern of over and under stocking of inventories in Brisbane and Newcastle branch of Barry's plumbing. Then the company has to use new technology to communicate with their representative from the head office of Barry's Plumbing in Sydney to their branch representatives of Newcastle and Brisbane. The objective of new design of REA model is to enhance the communication within the business cycle of Barry's plumbing. Then there is a problem of inaccurate invoices. This problem lies at organizational level of Barry's Plumbing. The employees who are responsible are paid according to the number of invoices, so they will always wish to make as much invoices as they ca within their job time. This practice will definitely affect the quality of their invoices and indirectly effect the whole business cycle of Barry's plumbing (Batra, pp 200-210, 2008).

Constraints

The constraints within the REA model of the Barry's Plumbing are somehow complex. Initially the inventory orders should not be ordered by branch managers. Branch managers in a business of any company have several responsibilities. There is always a person whose job is to take care of the inventory and maintain a smooth flow ...