1 You established a small shop that manufactures a single pr

1. You established a small shop that manufactures a single product that you sell by mail. you purchase raw materials from several vendors and employ five full-time employees. For which business functions would you certainly use software?

2. Why is it so important to have a quick response on online investment ISs? Give two examples of how such systems are critical.

Solution

1.

It is evident that for production scheduling and order shipment, it is not possible to continue without a software. Different customers will place orders at the different point of time for different quantity and the shop has to supply the order within the promised delivery date. It will very difficult to manually schedule the production and arrange delivery even with only five employees. Furthermore, if the demand happens to be very high, inventory management could be another issue. Consider that there are several vendors from which purchase will be made. Maintaining sufficient but not excess inventory, order placement, material receipt, and payment release cannot be done manually for a large vendor base with high demand situation. So, for purchase management function, management through software will be required.

2.

The quick response on online investment IS is a crucial issue at least for two reasons. The investors, especially the share trades, are interested in the price of a security on a real-time basis. If the instantaneous information is not available to them, the information is of no use because they may want ot sell the security in the next moment. Additionally, for the investment analysts also, it is important to chart the price of a security within second and make the prediction for their clients. The firm which produces the analyst reports most quickly are the winners. In other words, the quicker response leads the competitive advantages to these firms.

Such systems are crucial because they,