O'Brien CoverManagement Information Systems 4/e - James A. O'Brien
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Chapter 2: Fundamentals of Information Systems



Application Exercises
Answers to Application Exercises

1. Jefferson State University

Students in the College of Business Administration of Jefferson State University use its microcomputer lab for a variety of assignments. For example a student may use a word processing program stored on a micro-computer's hard drive and proceed to type a case study analysis. When the analysis is typed edited and properly formatted to an instructor's specifications the student may save it on a floppy disk and print a copy on one of the printers in the lab network. If the student tries to save the case study analysis using the file name that he or she has already used for saving another document the computer will display a warning message and wait until it received an additional command.

Make an outline to identify the information system components in the preceding example.

  1. Identify the people hardware software and data resources and the information products of this information system.

    The microcomputer system and printer are hardware the word processing package is software the student represents people resources of the system the text entered by the student is input and the final document produced is the information product.

  2. Identify the input processing output storage and control activities that occurred.

    The system accepts input in the form of text data typed by the student on the keyboard. The word processing software processes this input data to format it appropriately for display or printing and facilitate editing of the input document. Output is in the form of a copy of the document file saved on dis display of the document on the video screen and a printed copy of the document. The document is temporarily stored in the computer's primary memory and permanently stored on disk when it is saved. The warning message received when saving a file under a name that has already been used is an example of control.



2. Office Products Corporation

Office Products Corporation processes more than 10 000 customer orders a month drawing on a combined inventory of over 1 000 office products stocked at the company's warehouse. About 60 PC workstations many with printers are installed at Office Products headquarters and connected in a local area network to an IBM AS/400 midrange computer. Orders are received by phone or mail and entered into the system by order entry personnel at network computers or they are entered directly by dealers who have networked their PCs to Office Products. Entry of orders is assisted by formatted screens that help operators follow data entry procedures to enter required information into the system where it is stored on the magnetic disks of the AS/400.

As the order is entered the AS/400 checks the availability of the parts allocates the stock and updates customer and part databases stored on the computer's magnetic disks. It then sends the order pick list to the warehouse printer where it is used by warehouse personnel to fill the order. The company president has a PC workstation in her office as does the controller sales manager inventory manager and other executives. They use simple database management inquiry commands to get responses and reports concerning sales orders customers and inventory and to review product demand and service trends.

Make an outline that identifies the information system components in Office Products order processing system.

  1. Identify the people hardware software and data resources and the information products of this information system.

    People: customers dealers order entry clerks warehouse personnel president Hardware: IBM AS/400 60 PC workstations printers telecommunications links video display terminals dumb terminals (dealers) PC workstation for president controller sales manager inventory manager and other executives. Software: database management system Data resources: database Information products: orders

  2. Identify the input processing output storage and control activities that occurred.

    Input: order entries Processing: AS/400 (checks the availability of ordered parts allocates the stock and update customer and product databases). Output: order pick list on the warehouse printer management reports (printed and viewed on screen). Storage: magnetic disk on AS/400 Control: Data entry procedures formatted screens AS/400 checks the order as it is entered.


3. Western Chemical Corporation

Western Chemical has networked its computers to those of its customers and suppliers to capture data about sales orders and purchases. Such data are processed immediately and inventory and other databases are updated. Videoconferencing and electronic mail services are also provided. Data generated by a chemical refinery process are captured by sensors and processed by a computer that also suggests answers to a complex refinery problem posed by an engineer. Managerial end users receive reports on periodic exception and demand basis and use computers to interactively assess the possible results of alternative decisions. Finally top management can access text summaries and graphics displays that identify key elements of organizational performance and compare them to industry and competitor performance

Western Chemical Corporation has started forming business alliances and using intranets extranets and the Internet to build a global telecommunications network with other chemical companies throughout the world to offer their customers worldwide products and services. Western Chemical is in the midst of making fundamental changes to their computer-based systems to increase the efficiency of their business operations and their managers' ability to react quickly to changing business conditions.

Make an outline that identifies:

  1. How information systems support (1) business operations (2) management decision making and (3) strategic advantage (4) enterprise internetworking (5) globalization and (6) business process reengineering at Western Chemical.

    The telecommunications system word processing and data from the chemical refinery process are designed primarily to support business operations. The use of the refinery data to "suggest" answers to problems to the engineer and the periodic exception and demand reports generated by the system are designed to support managerial decision making. The text summaries and graphics displays provided to top management help support strategic decision making. Overall the systems improve operational efficiency which helps the strategic position of Western Chemical in the industry.

  2. There are many different types of information systems at Western Chemical. Identify as many as you can in the preceding scenario. Refer to Figure 2.21 to help you. Explain the reasons for your choices.

    Using the system to capture data about sales orders and purchases describes a transactions processing system. The electronic mail and word processing systems are office automation systems. The sensors capturing data about the refinery process are part of a process control system. The use of the data to suggest answers to complex refinery problems would represent an expert system. The reports sent to managerial end users represent an information reporting system. The use of computers by managerial end users to interactively assess the possible results of alternative decisions represents a decision support system. The text summaries and graphic displays provided to top management are an executive information system.


4. Al's Appliance City

The sales staff at Al's Appliance City are paid on a commission basis. The amount of commission earned is based on two components. A standard commission of 2 percent is paid on all sales. An additional bonus is paid on sales of items that have been identified as "high-priority items." Generally these are items that are overstocked. At the beginning of each week Al distributes to his sales staff a list of the high-priority items for that week as needed to move overstocked items.

Because of the complexity and changing nature of the commission system used commissions have always been hand calculated. Al's Appliance City uses a PC-based accounting package to handle its order processing. That package is used to produce weekly sales totals for each sales person. The total dollar amount of all sales and the dollar amount of sales of high-priority items by each salesperson are reported. A listing of this data for the most recent week is shown below.

Click here to download Microsoft Excel spreadsheet.

Al has requested that you create a spreadsheet for him that will allow him to calculate the total bonus owed each employee. The bonus rate for high-priority sales should appear on the spreadsheet as a parameter that Al can change when necessary.

  1. Based on the sample data create a spreadsheet to calculate the commission earned by each salesperson and total commissions earned. Assume a bonus rate for high-priority items of 3 percent. Get a printed listing of your results.

    See Data/Solution Disk or
    click here to download the Microsoft Excel spreadsheet


  2. Suppose the bonus rate for high-priority items has been 5 percent. Change the bonus rate parameter on your spreadsheet and print a revised set of commissions

    See Data/Solution Disk or
    click here to download the Microsoft Excel spreadsheet


  3. The types of information displayed in this question is a decision support system. Al is able to do "what if" analysis.

    See Data/Solution Disk or
    click here to download the Microsoft Excel spreadsheet


5. Monroe City School District

The Monroe City School District currently operates four high schools. Enrollment in three of these schools is significantly above their planned capacity. The school board will meet soon to examine proposals to alleviate overcrowding. The superintendent of the Monroe City School District has collected data shoeing planned capacity and actual enrollment for each high school over the past five years. These data are shown below.

    Actual Enrollment by Year
School Planned
Capacity
1994 1995 1996 1997 1998
Washington 680 642 628 631 618 620
Jefferson 750 715 743 761 766 791
Lincoln 660 652 679 701 722 737
Roosevelt 900 830 848 887 934 986


Your task is to summarize these data in graphical form in a way that will highlight the nature of the problem for the school board members. Your graphs should give an overall picture of the problem and also allow more detailed examination of the situation faced by individual schools. The data you present should highlight the magnitude of the current problem but should also give the board members a feel for the historical trends that are at work.

  1. Create a spreadsheet application incorporating the data shown. Perform any calculations on the raw data that are needed to generate useful information for graphic displays. (For example enrollment as a percentage of capacity or "enrollment minus capacity" might be an appropriate item for a graph. Also you might want to base one or more graphs on totals across all of the schools.

    See Data/Solution Disk or
    click here to download the Microsoft Excel spreadsheet


  2. Create a set of graphs highlighting the information discussed above and get a printout of each graph.

    See Data/Solution Disk or
    click here to download the Microsoft Excel spreadsheet


  3. What type of information system does this application represent. Explain your reasoning.

    See Data/Solution Disk or
    click here to download the Microsoft Excel spreadsheet




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