Compare the operating models
In this fictional example, Head office H sells through shops P1 and P2, both supplied from warehouse W. P1 takes order O1 while W packs it. One Branch field would have to choose between trading responsibility and the physical fulfilment place.
| Business requirement | One branch/location field | Separate linked entities |
|---|---|---|
| Who sold O1? | W could wrongly appear as seller | Sales branch P1 |
| Where are goods? | P1 could wrongly imply custody | Stock location W |
| Shared warehouse | Duplicate W for each shop | P1/P2 both use one W |
Work through the chosen model
The entity map is H → trading branches P1/P2, with both linked to fulfilment location W. O1 stores selling branch P1 and dispatch location W. Warehouse bins can sit below W without becoming new trading entities.
- Customer orders through P1
- W receives the fulfilment task
- Report sale by P1 and stock by W
Separate entities need explicit links, but support shared warehouses and branch reporting. A single field stays simpler only when selling and holding responsibilities always coincide.
O1 is one P1 sale and one W dispatch. P2 sees the same W stock pool where the supplied sharing arrangement permits it; the system does not create duplicate physical stock for each selling shop.
When the other model fits
P2 opens its own stockroom and no longer uses W for selected items. Must its business branch become a new company?
Show the worked answer
No. Add the physical location and permitted fulfilment relationship; company identity changes only if the supplied business structure changes.