Case Study B – L-Mart – Global Homework Experts

11486 Systems Analysis and Modelling / 6677 Systems Analysis and Modelling G
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Assignment Case Study B – L-Mart
Disclaimer: The situation described in the following case study is fictional, and bears no resemblance
to any persons, businesses, or organisations, living or dead. Any such resemblance, if exists, is merely
co-incidental in nature, and is not intentional.
L-mart is a national business that sells all kinds of varied goods directly to consumers through its
physical retail stores and growing online presence. It is looking to upgrade and improve its inventory
management system, as its current system is old, outdated, slow, and difficult to use – not suitable
for a growing company with rapidly increasing online sales.
L-mart’s inventory management system needs to keep a record of all of the products that are sold at
L-mart and the suppliers of those products. It also keeps records of all sales and inventory at both
individual physical retail stores, and at regional warehouses.
In the online web store, products are displayed to consumer with their name, retail price, a short
description, current stock at each location, and an image. The wholesale price (the price that L-mart
paid to a supplier for the product) and barcode are also recorded for each product.
The system also prints shelf labels for in-store use (for staff to put on shelves or individual items).
These shelf labels only include the name, retail price, and barcode of the product.
L-mart’s physical retail stores are named after their suburb and state (e.g. “Bruce, ACT”,
“Queanbeyan, NSW”), along with their street address, email address, phone number, and a store
manager (a person with a phone number).
Regional warehouses are named after the city/area they serve and state (e.g. “Canberra, ACT”,
“Western Sydney, NSW”), and have the same information except that they do not have a store
manager.
The inventory management system keeps a record of all sales. In-store purchases are obviously
recorded against the store they are purchased from (and reduce the inventory held by that store
accordingly). At the moment, online purchases are always shipped from a regional warehouse
directly to the customer (there is no click-and-collect functionality at present, although L-mart is
currently investigating the feasibility of this for the future). The time, sale location, product, and
quantity are recorded for all sales, and online purchases also record customer name, address, and
payment details.
Each location can mark individual products as ‘active’ or ‘inactive’. An ‘active’ product is for popular,
regularly-ordered products, where stock should automatically be reordered. An ‘inactive’ product is
for products that are seasonal or infrequently ordered.
For ‘active’ products, when stock of a product at a particular location reaches a critical threshold
(this is different for each product and each location, due to varying stocking and sale rates for each
product at each location), the inventory management system should automatically create a
purchase order, to be approved (or rejected) by store or warehouse staff. If an order is approved,
the staff will specify the amount of new stock to order. Each month, all of the approved purchase
orders for each store go out to each supplier for processing.
‘Inactive’ products are never automatically ordered but still have critical thresholds – store or
warehouse staff are still alerted when stock drops below these levels and they can manually create
purchase orders for these (or other products) if needed.

11486 Systems Analysis and Modelling / 6677 Systems Analysis and Modelling G
Page
2 of 2
Each supplier provides multiple products for L-mart, but L-mart only orders a product from a single
supplier at any given time.
As an ICT business analyst, you will be tasked with analysing and modelling L-mart
s current business
practices in order to better understand the current situation of the business, with a view towards
creating a single, updated ICT system to manage their inventory management system.

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