Rea Value Chain Applied on Production Planning Model

Value chain model is a network of business processes that are bound by inflows and outflows of resources. REA (resource-event-agent) is an ontology based on value oriented perspective of resources. REA value chain is a sequence of REA models (processes) utilizing REA ontology. The essence of value chain modeling is to get an overview over the business processes of the enterprise and to validate consistency of the whole model. In the current REA value chain model, only flows of resources at the operational level of the process models can be utilized. This fact considerably eliminates activities whose basis lies rather at the policy level (meta-level) such as planning, controlling and monitoring. To cope with the issue the paper designs means how to adopt REA value chain model to be able to effectively comprise the flows of entities between both the operational and policy level. This approach comes out form the current REA value chain and is generalized into the notion of controlling and controlled REA process models. Proposed solution not only helps to clear up relationships between different REA process models but also contributes to direct integration of acquisition and sales (revenue) REA process models. Designed approach is demonstrated on attached figures of the REA production planning model.