“Department Store Inventory System”

Introduction to the case:Good Food is a department store chain with a

total of 15 stores across AP and Karnataka.Its HQ is located in Bangalore.They followed the manual system of firm

buyers earlier and have recently updated with computerizes system.

The purchase order management system has been automated recently.

Company’s Activities and Objectives.

Problems Faced:As they had manual system to monitor order

and inventory they faced the some problems:1. Error occurred in the preparation of the

handwritten purchase order.2. There were numerous errors in pricing and

penmanship.3. The copies of orders sent to vendors were

intelligible. Due to the above mentioned problems the

major problem was that it lead to confusion and discrepancies between items ordered and items delivered.

SWOT Analysis:Strengths:1. Infrastructure2. Diversification3. Quality Weakness:1. Lack of computerized system.2. Lack of accuracy and timeliness.

Opportunities:1. Upgrading the system with the

Computerized system will help them to recover from the weakness.

2. Online services will increase the sales and will help in connecting with thousands of customers.

Threats: 1. Rapid changes in the information systems.2. Rising costs will reduce the profit margins.

Questions given in the case:1. What are the information qualities and

back-up procedure that are found in the system?

Ans- The information qualities that are found in this

system are: Timeliness Accuracy Flexibility Frequency Completeness Comprehensive Clarity.

The back up procedure in the system are:Data access to receiving centre.Paper copy maintained for the risk of

hardware failure.

2. What are the problems with the system existing prior to computerization? How do you think this has affected the Good Food.Ans-The problem was mainly the manual system that

was existing in the organization which caused problems:

Errors in the preparation of purchase orders.Calculations were also done manually, which

lead to errors in pricing and penmanship.Orders sent to the vendors were intelligible.Effect on Good Food:This lead to discrepancies between items ordered

and items delivered and caused confusion.

3. Which capabilities of IT helped the Good Food to solve the problems?Ans- Good Food replaced the manual system by

hardware and software systems which links regionally located computers.

They used worksheets to rough out the orders and then enter it in the system.

The computer provided two methods of data access to the receiving center:

1. When the data is entered it is printed automatically at the receiving center.

2. Data is retrieved by online access through visual display terminals in the warehouse.

4. Which type of information system does the computerized system belong to?Ans-The computerized system basically belongs to

Operational level systems: Information systems that monitor the elementary

activities and transactions of the organization. E.g. Sales, receipts, cash deposits, pay roll, credit decisions, and flow of materials in a factory.

Under operational level system it follows the Transaction Processing System:

This computerized system performs and records daily routine transactions necessary to conduct the business, they serve operational level of the organisation.