Examination Paper of Management Information Systems

IIBM Institute of Business Management

Examination Paper
MM.100
SubjectCode-B110 Management Information Systems

 This section consists of multiple choices and Short Notes type questions.
 Answer all the questions.
 Part one questions carry 1 mark each & Part two questions carry 5 marks each.

Section A: Objective Type & Short Questions (30 marks)

Part one:
Multiple choice:

I.A person machine-system and a highly II. Which one of the following is not an
integrated grouping of information-processing important characteristic of useful and
functions designed to provide management with effective information? (1)
a comprehensive picture of specific operation is
called (1) a) Accuracy
b) Timelines
a) DSSB c) Completeness
b) MISC d) Economy
c) IISD
d) All of the above

III. The most important reason for failure of IV. Top level Managers use
MIS is (1) (1)
a) Strategic information
a) Use of improper tools for design b) Tactical information
b) Noninvolvement of end-user c) Operational information
c) Improper specification d) None of these
d) None of the above

V.System is an important factor of MIS. There are

various types of systems. Which one of the VI. Which one of the following is not an
following is not a system? (1) approach for development of MIS?
(1)
a) Hierarchical approach
a) Physical system
b) Integrative approach
b) Integrated system c) Modular approach
c) Open system d) Elective approach
d) Open system

IIBM Institute of Business Management

Examination Paper of Management Information Systems

VII. Management is linked to information VIII. Which pattern reflects a pure

by (1) executive form of management?
a. Decisions (1)
b. Data a. Functional
c. Both [A] And [B] b. Line
d. None Of The Above c. Line and Staff
d. Committee

IX. The term financial engineering is related to (1) X. The goal of financial management is
to (1)
a) Cost of production
b) Financial restructuring a) Maximize the wealth of
c) Product planning preference share holders
d) Capital issue b) Maximize the wealth of
debenture holders
c) Maximize the wealth of
equity share holders
d) All of the above

Part Two:

1. What is purpose of information system from a business perspective? (5)

2. What are Enterprise System? How do they benefit businesses? (5)

3. Differentiate DSS from MIS. (5)

4. What do you mean by Data visualizations? (5)

END OF SECTION A

Section B: Caselets (40 marks)

 This section consists of Caselets.
 Answer all the questions.
 Each Caselet carries 20marks.
 Detailed information should form the part of your answer (Word limit 150 to 200 words).

IIBM Institute of Business Management

 Examination Paper of Management Information System

Caselet -1

A waiter takes an order at a table, and then enters it online via one of the six terminals
located in the restaurant dining room. The order is routed to a printer in the appropriate
preparation area: the cold item printer if it is a salad, the hot-item printer if it is a hot
sandwich or the bar printer if it is a drink. A customer’s meal check-listing (bill) the items
ordered and the respective prices are automatically generated. This ordering system
eliminates the old three-carbon-copy guest check system as well as any problems caused
by a waiter’s handwriting. When the kitchen runs out of a food item, the cooks send out an
‘out of stock’ message, which will be displayed on the dining room terminals when waiters
try to order that item. This gives the waiters faster feedback, enabling them to give better
service to the customers. Other system features aid management in the planning and
control of their restaurant business. The system provides up-to-the-minute information on
the food items ordered and breaks out percentages showing sales of each item versus total
sales. This helps management plan menus according to customers’ tastes. The system also
compares the weekly sales totals versus food costs, allowing planning for tighter cost
controls. In addition, whenever an order is voided, the reasons for the void are keyed in.
This may help later in management decisions, especially if the voids consistently related to
food or service. Acceptance of the system by the users is exceptionally high since the
waiters and waitresses were involved in the selection and design process. All potential
users were asked to give their impressions and ideas about the various systems available
before one was chosen.

Questions

1. What would make the system a more complete MIS rather than just doing transaction
processing? (10)
2. Explain the probable effects that making the system more formal would have on the
customers and the management? (10)

Caselet 2
The Company is considered to be a leader in the design and production of industrial and
commercial air-conditioning equipment. While most of the products were standard
items, a considerable number involving large sales volume were specially designed for
installation in big office buildings and factories. Besides being an innovator in product
design and having an exceptionally good customer service department, the company is
well known for its high-quality products and its ability to satisfy the customer
requirements promptly.
Because of its rapid growth, the company had to be careful with its cash requirements,
especially for accounts receivable and for inventories. For many years, the company had
kept inventories under close control at a level equal to 1.7 times the monthly sales, or a
turnover of nearly 6 times per year. But, all of a sudden, inventories soared to triple
monthly sales, and the company found itself with Rs.30 crores of inventories above a
normal level. Calculating a cost of carrying inventory at 30 percent of the value of

IIBM Institute of Business Management

 Examination Paper of Management Information System

inventories (including the cost of money, storage and handling, and obsolescence), it
was estimated that this excess inventory was costing the company Rs.9 crores per year
in profits before taxes. In addition, it forced the to call on its bank for more loans than
had company been expected.
Mr. Dcepak Mehra, president of Connair, was understandably worried and incensed
when this matter came to his attention. He was told that the primary reasons for this
rise in inventory were excessive buying of raw materials in advance because of
anticipated shortages and the failure of a new computer software, with the result the
people in the production and purchasing departments were not having complete
information as to what was happening to inventory for several months.
Mr. Mehra, taking the stand that no company should let something like this surplus
inventory occur without advance notice and that no manager can be expected to control
a business on the basis of history, instructed his vice-president for finance to come up
with a program to get better control of inventories in the future.
Questions for Discussion:

1. What do you find wrong with Connair's controls? (10)

2. Are there any other techniques or approaches to control that you would suggest?
(10)

END OF SECTION B

Section C: Applied Theory (30 marks)

 This section consists of Applied Theory Questions.

 Answer all the questions.
 Each question carries 15marks.
 Detailed information should form the part of your answer (Word limit 200 to 250
words).

1. List and describe the information systems serving each of the major functional areas of
business? (15)

2. What are the characteristics of MIS? How MIS do differs from TPS? (15)

END OF SECTION C

S-2-010619

IIBM Institute of Business Management