Information system question

Questions

The owner of a chain of auto-accessory shops in five different towns inputs sales figures into a computer model that displays the selling trends of each store. She uses her own observation form visits to the shops and information gained from the model to make ordering decisions for each store.

Required:

Are the ordering decisions she makes structured, semi-structured or unstructured? Briefly explain

the reasons for your choice and outline what product related variables are involved in the ordering decisions. (10 marks)

(b) Certain financial problems such as simplified break-even analysis models for predicting profits can

be computerised.

P = (Sp – Vc) U – F c

Where:

P = Profits

Sp

= Selling price per unit

Vc

= Variable cost per unit

U = Number of units of sales

Fc

= Fixed cost

Required:

Using the above model, describe any three decisions that management can make from the break-even analysis model. (6marks)

Why do organisations automate reasoning or decision-making tasks which human beings are naturally better able to perform than computers? (4 marks)

(Total: 20 marks)