O'Brien CoverManagement Information Systems 4/e - James A. O'Brien
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Chapter 11: Information Systems for Managerial Decision Support



Application Exercises
Answers to Application Exercises

1. The ADCAD System.

Evaluate the ADCAD expert system on page 488 in the chapter. Write up you evaluation based on the following points.

  1. The components of an expert system that you recognize (See Figure 11-28)

    Users: Advertising and brand managers

    Workstations: Not specified in the exercise.

    User interface program: ADCAD is user friendly and uses a question and answer format which allows users to easily go thorough the whole process of gathering and inputting information about the advertising problem.

    Inference engine: ADCAD searches its knowledge base matches user answers against its rules to draw inferences. Then it presents its recommendations along with a rationale for each recommendation if asked.

    Knowledge base: ADCAD captured the experience and knowledge of consultants from the Young & Rubicam advertising agency.


  2. How well it fits the suitability criteria and application categories for expert systems (See Figures 11-31 and 11-34).

    The domain is well defined it requires complex solutions and expert knowledge and expertise and proven procedures are available. Major application categories are advertising management

  3. The benefits and limitations of this expert system.

    Benefits: Provides the advertising and brand managers with a rationale for their current advertising as well as ideas for new communications approaches. It also supports ?What-if? analysis of advertising options. ADCAD allows end users to easily change their responses to questions and investigate the impact of alternative product or market assumptions. It is also a valuable training tool for students and novice advertising managers. Makes the experience and knowledge of consultants expertise available to the advertising personnel and other managers throughout the organization.


2. ES at Canada Trust

Evaluate the SIMR expert systems of Canada Trust on page 490 in the chapter. Write up your evaluation based on the following points:

  1. The components of an expert system that you recognize (See Figure 11-28)

    Users:
    Workstations:
    User interface program:
    Inference engine:
    Knowledge base:


  2. How well it fits the suitability criteria and application categories for expert systems (See Figures 11-31 and 11-34).

    The domain is well defined it requires complex solutions and expert knowledge and expertise and proven procedures are available. A major application category is evaluating applications for health insurance coverage.

  3. The benefits and limitations of this expert system.

    Shortens time required for evaluation and processing of applications. Handles 40 percent of all insurance allocations without requiring a review by medical personnel; cut in half the time a doctor or other medical staffer needs to review remaining applications. Significantly improved business processes cut operating expenses and provides better service to customers.


3. Computer Systems at Action Products

Your department is planning to purchase new personal computers for as many staff members as possible up to 20. All PCs purchased are to be identically configured. From discussions with employees you have determined a set of minimum requirements and a set of desired features for the PCs. You have gotten a price quote from a local vendor for these units. The quote received was in the form of a base price per unit for the minimum configuration plus an indication of the added cost for upgrading to each of the desired features. The price quoted is valid for purchases of 15 or more units. The information on the price quote from Action Products is as follows:

Unit Cost of Base PC and Options
(purchase of at least 15 Units required)
Base Price $1 899
Upgrades  
To 16 MB RAM 325
To 17 in. Monitor 129
To 2.5 GB Hard Drive 159
To 8 X CD-ROM drive 89


Assume that the upgrade items are listed in order from highest to lowest priority and that there is a fixed budget of $45 000 for the purchase of these PCs.

  1. Create a spreadsheet that will allow you to analyse the possible configuration alternatives and their impact on costs. Modify your spreadsheet to analyse the three alternatives and any additional ones you would recommend. Attach a printed listing of each alternative to a memo summarizing your results.

    1. Purchase 20 units and get as many upgrades as possible in priority order as previously described. Your spreadsheet should show the total cost and how many upgrade features could be purchased.

    2. Purchase units with all of the upgrades listed and buy as many units as you can under the $45 000 budget.

    3. Purchase 20 units and get as many upgrades as possible except for the RAM upgrades. This upgrade might be shifted to the lowest priority because it would be easier to add RAM at a later time than to add any of the other upgrades.


    See Data/Solutions Disk or
    Click here to download Microsoft Excel spreadsheet.


4. Jackson City School District

The Jackson City School District has five high schools. The following table lists current enrollment and the number of teachers currently assigned to each high school. The district has established a goal of ensuring that there is at least one teacher for every 25 students in each high school. (You can divide the number of students by the number of teachers to determine the ratio for each school.) Is it possible to achieve this goal without increasing the number of teachers in the district?

School Students Teachers
Lincoln High 1587 67
Kennedy High 1704 69
Canaveral High 1438 59
Washington High 1699 68
Granite High 1505 66


  1. One suggested method for achieving this goal is to pay transportation expenses for students who are willing to transfer from overcrowded schools to less crowded schools. Use goal seeking analysis to determine the number of students who would have to transfer to get all of the schools below the 1 to 25 ratio.

    See Data/Solutions Disk or
    Click here to download Microsoft Excel spreadsheet.


  2. A second alternative is to transfer teachers from less crowded schools to schools that are overcrowded. Use goal seeking analysis to determine the number of teachers who would have to transfer to each overcrowded school to get all schools below the 1 to 25 ratio.

    See Data/Solutions Disk or
    Click here to download Microsoft Excel spreadsheet.




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