“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. Infrastructure
2. Diversification
3. 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
Ans- the problems?
solve
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.