2.2 List the six general types of information management systems, and give one logistics application for each one that you’ve named. 1. Office Automation System a. provides effective ways to process personal and organizational business data, to perform calculations, and to create documents i. Spreadsheet applications to calculate opti- mal order quantities, facility location, trans- port cost minimization, among others 2. Communication system b. helps people work together by interacting and sharing information in many different forms ii. Voice-based order picking 3. Transaction processing system (TPS) c. collects and stores information about transactions; controls some aspects of transactions iii. Point-of-sale systems 4. Management information system (MIS) and executive information system (EIS) d. converts TPS data into information for monitoring performance and managing an organization; provides executives information in a readily accessible format iv. Logistics information system 5. Decision support system (DSS) e. helps people make decisions by providing information, models, or analysis tools v. Application-specific software such as warehouse management systems 6. Enterprise system f. creates and maintains consistent data processing methods and an integrated database across multiple business functions vi. Logistics modules of enterprise resource planning systems
*General Types of Information Management Systems Source: Taken from Steven Alter, Information Systems, 4th ed. (Upper Saddle River, NJ: Prentice Hall, 2002), p. 191.
2.4 How can communication systems facilitate logistics management in the aftermath of situations such as terrorist attacks and natural disasters?
Communications systems are key in dire situations like natural disasters and terrorist attacks because it allows the company to keep everyone together and on the same page so that tasks can still be completed.
2.6 Discuss how global positioning systems have become quite valuable in transportation management.
GPS allows a transportation to keep track of a driver and the product to be sure that a delivery is being made timely and efficiently. GPS makes it possible to know if a driver is diverting from their route and, if it’s due to construction or a detour, it allows the company to inform other drivers along the same route. It also would allow a company to locate their product if a driver “goes rogue” or if the truck is stolen.
2.8 Discuss the relationship between automatic identification technologies and point-of-sale systems.
Automatic identification technologies and POS systems are related because a typical POS system uses a bar code scanner and it reads the UPC in order to make a sale, which is an automatic identification technology.
2.10 Discuss the importance of timely and accurate information to a logistics information system.
“Time is money.” That is the saying that comes to mind when I think about the importance of timely and accurate information in a logistics information system. When a manager or associate needs information regarding an item, they’re going to use some kind of logistics information system and they will typically need that information as soon as possible, so being timely is huge. The information also needs to be accurate, though. If you were going to look up information on a particular cell phone, you wouldn’t want to find information on the model from three years ago.
2.12 What is data mining? How might it be used in logistics?
Data mining is the use of techniques to find patterns and correlations in sales and product movement. In logistics, it would be used to be sure that certain product is in the store before a customer even knows that they need/want it. For instance, Walmart uses these techniques to determine when product needs to be there and what product. A lot of people tend to have corned beef and cabbage for New Year’s, because of this, we ship several cases of cabbage to stores right before New Year’s. In the summer, Thursday’s tend to be busy days for shipping grapes and berries because many people go to the stores on Fridays and Saturdays to shop for these fruits for get togethers, picnics, etc.
2.14 Refer back to the logistical activities listed in Chapter 1; pick two that you’re interested in and research how they have been influenced by the Internet. Are you surprised by your findings? Why or why not?
To start, I chose “demand forecasting” and “international logistics”. I would have guessed that demand forecasting would have been influenced more by the internet than it has, but based on my research, demand forecasting is still mostly based on algorithms and forecast models based of previous years. I imagine that given time, and the vast use of social media, the internet will play a much larger role than it does. However, international logistics has been greatly influenced by the internet. Language especially is no longer an issue when it comes to placing orders and sending product internationally due to translators through Google and other browsers. It’s also become much simpler to find means of shipping and knowing those costs by the use of shipping company’s websites. Every aspect of international logistics has become simpler due to the internet.
2.16 Why is a “one size fits all” logistics strategy not likely to facilitate effective or efficient online shopping?
One size fits all would not be effective or efficient for every online retailer as some customers have different situations that have to be factored and not all products are the same either. A company that ships chocolates has to have a different strategy than a company that ships clothing.
2.18 Discuss the benefits and drawbacks to electronic procurement.
Benefits to electronic procurement include transaction efficiency, time saved, and many monetary benefits, such as electronic invoices that would save on stationary and postage. Drawbacks include security of information and the possibility of a customer being offended by things being impersonal. Many old school people would prefer doing business face to face, or over the phone, or even using mail, as opposed to everything being done online.
2.20 What are some of the macro-level information technology challenges that manager’s face?
Some of the challenges a manager faces involving information technology mostly have to do with security. Information is very susceptible to being “stolen” by hackers, and with the growth of technology, it becomes a growing concern every day. A manager is also challenged by the theft of technology devices such as laptops, cell phones, etc. Another concern could include an associate that becomes addicted to the technology or an associate that is unwilling to learn the technology that is being implemented.