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Management Information System Analysis

1) The document provides sales data from a database for various products (keyboards, monitors, CPUs, mice) across different time periods (weeks and months), regions (East, North, South), and stores. 2) The best performing region overall was East with $529,124.80 in total sales, and the best performing individual stores were stores #1 and #6. 3) The strongest selling product was the desktop CPU with $833,800.95 in total sales.

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Rani Muniandy
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11 views8 pages

Management Information System Analysis

1) The document provides sales data from a database for various products (keyboards, monitors, CPUs, mice) across different time periods (weeks and months), regions (East, North, South), and stores. 2) The best performing region overall was East with $529,124.80 in total sales, and the best performing individual stores were stores #1 and #6. 3) The strongest selling product was the desktop CPU with $833,800.95 in total sales.

Uploaded by

Rani Muniandy
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Management Information System

EC 4401

Tutorial 1

Section A
Management Decision Problems
1) Snyders of Hanover, which sells more than 78 million bags of pretzels, snack chips, and organic
snack items each year, had its financial department use spreadsheets and manual processes for
much of its data gathering and reporting. Hanover’s financial analyst would spend the entire final
week of every month collecting spreadsheets from the heads of more than 50 departments
worldwide. She would then consolidate and re-enter all the data into another spreadsheet, which
would serve as the company’s monthly profit-and-loss statement. If a department needed to
update its data after submitting the spreadsheet and wait for the department to re-submit its data
before finally submitting the updated data in the consolidated document. Assess the impact of this
situation on business performance and management decision making.
- Human error
- The accuracy of the data is questionable
- Time consuming to compile the report
- Also time consuming to get the data incase of error in data
- Analyzing and decision making may not be accurate due to error

2) Dollar General Corporation: Wants to keep costs as low as possible so it does not use an
automated method for keeping track of inventory at each store. What decisions have to be made
before investing in an information system solution?
- Identify the real problem in current environment (inventory)
- You have the business process of existing inventory system
- Design a new business process
- Identify the users of IS
- Want to decide whether you want to build in house or outsourcing
- Identify the budget and calculate the Interest Rate of Return (IRR) and ROI (return of
investment
- Review income statement
- The cost of building or purchasing IS
- Identify the vendor
- Identify the features of the IS

Section B
Improving Decision Making: Using Databases to Analyze Sales Trends:
Software skills: Database querying and reporting
Business Skills: Sales Trend Analysis
Data File : laudon_ch01_questionfile.mdb
Collect the information for the following queries :

a) Best performing region by total sales

Sum of Total
Row Labels Sales
East 529124.8
North 233832.75
South 234595.05
Grand Total 997552.6

b) Best performing stores by total Sales

Store NO Total Sales


1 90281.1
2 54262.7
3 90051.25
4 75498.75
5 158334
6 267648.9
7 170040.85
8 91435.05
Grand Total 997552.6

c) Best Selling Products by units sold


Product Total Units Sold
101
Keyboard 917
17" Monitor 609
Desktop CPU 981
PC Mouse 670
Grand Total 3177

d) Best Selling products by weekly sales


Row Labels Sum of Total Sales
101 Keyboard 18,294.15
27-Oct 5,645.85
24-Nov 6,064.80
29-Dec 6,583.50
17" Monitor 139,461.00
27-Oct 44,655.00
24-Nov 57,479.00
29-Dec 37,327.00
Desktop CPU 833,800.95
27-Oct 265,184.40
24-Nov 277,083.70
29-Dec 291,532.85
PC Mouse 5,996.50
27-Oct 2,237.50
24-Nov 1,333.55
29-Dec 2,425.45
Grand Total 997,552.60

e) Strongest sales region by product quantity


Row Labels Sum of Total Sales Sum of Units Sold
101 Keyboard 18,294.15 917.00
East 7,680.75 385.00
North 6,164.55 309.00
South 4,448.85 223.00
17" Monitor 139,461.00 609.00
East 75,112.00 328.00
North 26,793.00 117.00
South 37,556.00 164.00
Desktop CPU 833,800.95 981.00
East 443,673.90 522.00
North 198,888.30 234.00
South 191,238.75 225.00
PC Mouse 5,996.50 670.00
East 2,658.15 297.00
North 1,986.90 222.00
South 1,351.45 151.00
Grand Total 997,552.60 3,177.00

f) Strongest sales region by products sales


Row Labels Sum of Total Sales Sum of Units Sold
101 Keyboard 18,294.15 917.00
East 7,680.75 385.00
North 6,164.55 309.00
South 4,448.85 223.00
17" Monitor 139,461.00 609.00
East 75,112.00 328.00
North 26,793.00 117.00
South 37,556.00 164.00
Desktop CPU 833,800.95 981.00
East 443,673.90 522.00
North 198,888.30 234.00
South 191,238.75 225.00
PC Mouse 5,996.50 670.00
East 2,658.15 297.00
North 1,986.90 222.00
South 1,351.45 151.00
Grand Total 997,552.60 3,177.00
g) Strongest selling periods by product
Sum of Units Sold Month
Product Oct Nov Dec Grand Total
101 Keyboard 283.00 304.00 330.00 917.00
17" Monitor 195.00 251.00 163.00 609.00
Desktop CPU 312.00 326.00 343.00 981.00
PC Mouse 250.00 149.00 271.00 670.00
Grand Total 1,040.00 1,030.00 1,107.00 3,177.00

h) Strongest selling periods by sales region


Sum of Units Sold Month
Product Oct Nov Dec Grand Total
101 Keyboard 283 304 330 917
East 123 123 139 385
North 92 106 111 309
South 68 75 80 223
17" Monitor 195 251 163 609
East 76 138 114 328
North 45 45 27 117
South 74 68 22 164
Desktop CPU 312 326 343 981
East 165 173 184 522
North 76 81 77 234
South 71 72 82 225
PC Mouse 250 149 271 670
East 94 97 106 297
North 94 35 93 222
South 62 17 72 151
Grand Total 1,040 1,030 1,107 3,177.00

i) Strongest selling periods by store


Sum of Units Sold Month
Product Oct Nov Dec Grand Total
101 Keyboard 283 304 330 917
1 30 35 39 104
2 8 8 8 24
3 30 32 33 95
4 12 24 36 72
5 80 82 75 237
6 52 58 69 179
7 49 47 48 144
8 22 18 22 62
17" Monitor 195 251 163 609
1 28 30 9 67
2 8 8 10 26
3 38 30 3 71
4 18 20 4 42
5 27 25 23 75
6 24 85 56 165
7 34 36 35 105
8 18 17 23 58
Desktop CPU 312 326 343 981
1 25 27 33 85
2 18 18 20 56
3 28 27 29 84
4 21 24 30 75
5 55 57 47 159
6 78 88 99 265
7 55 57 55 167
8 32 28 30 90
PC Mouse 250 149 271 670
1 28 3 38 69
2 9 9 8 26
3 25 5 26 56
4 29 11 38 78
5 65 24 55 144
6 35 39 44 118
7 45 42 45 132
8 14 16 17 47
Grand Total 1,040.00 1,030.00 1,107.00 3,177.00

j) Strongest stores by product quantity


Product Sum of Units Sold
101 Keyboard 917
1 104
2 24
3 95
4 72
5 237
6 179
7 144
8 62
17" Monitor 609
1 67
2 26
3 71
4 42
5 75
6 165
7 105
8 58
Desktop CPU 981
1 85
2 56
3 84
4 75
5 159
6 265
7 167
8 90
PC Mouse 670
1 69
2 26
3 56
4 78
5 144
6 118
7 132
8 47
Grand Total 3,177.00

k) Strongest stores by product sales


Product Sum of Total Sales
1 90,281.10
2 54,262.70
3 90,051.25
4 75,498.75
5 158,334.00
6 267,648.90
7 170,040.85
8 91,435.05
Grand Total 997,552.60

1) Which products should be restocked?

2) Which stores and sales regions would benefit from a promotional campaign and additional
marketing?

3) When (what time of year) products should be offered at full price, and when should discounts be
used?

Section C
Achieving Operational Excellence: Using Internet Tools to Budget for Shipping
Costs
Software skills: Internet-based software
Business Skills: Shipping cost budgeting

1. Compare three shippers, such as Federal Express ([Link]), UPS ([Link]), and
the U.S. Postal Service ([Link]). Consider not only costs but also such issues as delivery
speed, pickup schedules, drop-off locations, tracking ability, and ease of use of the Web site.
Which service did you select? Explain why.

2. By using suitable job search engine, research for the careers that require information skills.

Common questions

Powered by AI

An effective strategy is to target regions and stores with moderate sales performance, where there is room for increased consumer engagement. For instance, the North region typically shows steady but not leading sales for various products, indicating it could benefit significantly from a promotional campaign to boost sales. Additionally, stores like Store 5 and Store 6, which already have high sales, may benefit from further promotions to maximize revenue opportunities .

Factors to consider include sales trends over time (e.g., peak demand periods indicated in sales data), product life cycle stage, competitor pricing strategies, and consumer buying behavior during certain times of the year. For example, higher sales in December suggest potential for full pricing, whereas slower months may necessitate discounts to stimulate demand .

The primary challenges faced by Snyder's of Hanover include heavy reliance on spreadsheets and manual data entry processes for financial management. Financial analysts spend an entire week each month consolidating data from over 50 departments, leading to inefficiencies and a heightened risk of human error. This process results in questionable data accuracy, is time-consuming, and hampers accurate and timely decision-making due to delays in correcting submitted data .

Businesses can use internet-based tools such as calculators on shipping service websites (e.g., FedEx, UPS, USPS) to estimate and compare shipping costs accurately. These tools allow for real-time cost simulations based on weight, distance, and delivery speed preferences, helping businesses optimize budgets by choosing the most cost-effective shipping options .

Products such as the Desktop CPU, which sold 981 units, and the PC Mouse, which sold 670 units, should be prioritized for restocking due to their high sales volumes. Restocking these items ensures supply meets demand, particularly during peak periods identified in the sales data, such as December for the Desktop CPU .

Before implementing a new information system for inventory management, Dollar General Corporation should first identify the real problems in their current system. Next, they should analyze existing business processes and design a new system. Key decisions include whether to build the system in-house or outsource it, calculating the IRR and ROI, reviewing the cost of building or purchasing the system, and identifying potential vendors. Finally, determining the system's necessary features and assessing which stakeholders will use it are crucial steps .

Database querying and reporting are crucial for analyzing sales trends, as they allow businesses to extract specific data insights that inform strategic decisions. For example, querying can help identify the best-performing regions, products, and sales periods, providing data-driven insights for inventory management and marketing strategies. Such detailed analysis supports targeted decision-making to enhance overall sales performance .

Automated information systems for inventory management offer advantages such as real-time data tracking, reduced human error, improved accuracy, and efficiencies in reporting and analysis. Unlike manual methods, automation allows for consistent data updates and insights that facilitate quicker decision-making and operations management. These systems support better forecasting and replenishment strategies, ultimately improving service levels and cost management .

Important considerations in comparing shipping services include cost, delivery speed, pickup schedules, availability of drop-off locations, tracking capability, and user-friendliness of the service's website. Weighing these factors enables a business to select a service that optimally balances cost efficiency with customer satisfaction. For example, a service like Federal Express might be chosen for its comprehensive tracking and faster delivery times, despite potentially higher costs compared to alternatives .

By analyzing sales data from various regions, businesses can identify demand patterns and sales performance metrics, enabling them to adjust inventory distribution and logistics strategies accordingly. For example, prioritizing shipments to the East region, which shows significant sales for most products, ensures efficient allocation of resources and reduces the risk of overstocking or stockouts. Such analyses guide logistics planning, improving supply chain responsiveness and cost-efficiency .

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