Supply Chain Management- MIS
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The top-level management wants to implement a supply chain information system (SCIMS) to increase productivity and reduce costs. Specifically, they want more efficient delivery of goods to customers to lower inventory and transportation expenses. The document then discusses the information requirements at different organizational levels and flows of information between customers, suppliers, and manufacturers to facilitate an effective SCIMS.
Supply Chain Management- MIS
- 2. A) Why top level management want to implement SCIMS? What are the needs and necessities explain in detail. Answer) The top level management wants to implement SCIMS because they want to increase their productivity and reduce production cost. They wanted to be more efficient and quick in delivering the goods to the customer which would further reduce their inventory cost. The needs and necessities to implement SCIMS are, I )Ordering Cycle Time is shortened. II) Product Inventory Decreased. III) Transportation Cost Decreased. IV) The amount of production line stop decreased to almost zero. V) The cost of production line stopped decreased to almost zero. VI) Apart from this, another basic necessity for supply chain implementation is visibility of appropriate information in the exact time and exact arrangement.
- 3. Answer) In order to run SCIMS, 3 different levels are involved: a)Tactical b)Operational c)Strategic The information requirements are i) In inventory control strategy, appropriate information at exact time and exact arrangement might be used at the level of inventory safety, reorder point, stock level of finished goods, raw materials and middle parts and inventory location. ii) In purchase and logistics there are supplier lead time, supply lot size, supplier capacity and purchase time. iii) Significant order information consist of information such as due date, preference, .start and end information and order pattern. Strategic information constitutes order control policies and dispatch policies.
- 4. Explain the flow of information to facilitate the users. Answer) The following block diagram shows the flow of information to facilitate the users CUSTOMER ORDER FORECASTING RECEIVE CUSTOMER ORDER SUPPLIER RAW MATERIAL ORDER FACTORY •The customer places the order and it is received by the organization. •The order forecasting is done by the company. •Then the order goes to the factory. •Then in the factory the raw material requirement is anticipated according to the customer order. •Then the order is placed with the supplier of the raw materials. •Finally the supplier delivers the raw materials and production starts.
- 5. A) What are the steps of developing the database? Answer) The following steps are required for developing the database Gathering information a)Identifying the objects for developing the database b)Identifying the types of information for each object. c)The database will be created in MS ACCESS. d)The database will be installed in the server of the organization e)The database will have 4 different categories of data i.e. Production Data, Customer Data, Supplier Data and Informational Data.
- 6. Answer) Minimum 4 tables are required which would contain the data. The tables are I)Production data Table – This includes data regarding the production. E.g. Production Rate, Product Price, Product Type etc. II) Customer Data Table – The data base is designed to help the customer in order to deal with their order requests step by step. III) Supply Data Table – It includes supplier data e.g. Supplier list, Part Price, part Description etc. IV) Information Flow Data Table – This includes information within suppliers, manufacturers and customers. This is provided because they are the ultimate users.
- 7. Answer) The customer database is centrally located in the server of the organization and all the data among the 4 tables are inter-related. When a customer places an order which is recorded in the customer data table, from that the organization gathers the production requirements which are evaluated and analyzed which is recorded in the production data table. According to the requirements, the organization gives order to the supplier for raw materials which is recorded in the supplier data table. The raw materials are then used for production of goods and delivery to the customer.
- 8. A)Explain important features or tools required in user interfaces which will facilitate users to become more informative and responsive? Answer) Important tools and features that is required in the user interface which will facilitate the users to become more responsive and informative are i) Internet connection by which customers can enter their data to place the order. ii) A centralized database which will store all the information and the data base will be in the server where all the client machines can access. iii) Microsoft Access 2007 iv) Microsoft Outlook 2007 v) Microsoft Info Path 2007 vi) The database is designed to help the customers dealing with their order requests step by step.
- 9. Answer) Software tools and technologies that are needed for Employee Database Interaction are i) A valid internet connection by which the customers are connected to the server where the database is stored. ii) Microsoft Suite of Tools which includes MS OFFICE.
- 10. Answer) The Company has decreased the cost of production by using the new system within one month. The table below illustrates the comparison between the old system and the newly developed system. All presented information for old system is taken from the historical records of the company and information regarding the new system is obtained from the outputs of the proposed SCM IS model. ELEMENT OLD SYSTEM NEW SYSTEM UNITS PRODUCT IN INVENTORY 400 44 NUMBER RESPOND TIME 56 8 HOURS TRANSPORT COST 55000000 10000000 IRR