00

NAVAL POSTGRADUATE SCHOOL Monterey, California
VV STATE
I

V

E

DTI

'AN! 30,19911

THESIS
COMPUTERIZED POINT-OF-SALES SYSTEM MORALE, WELFARE, AND RECREATION DEPARTMENT LONG BfACH, CALIFORNIA

by James J. Coltellaro June, 1990 Leslie J. Zambo Glenn
1i-01r-

Thesis Advisor: Second Reader: fi-yr n

Eberling

Airr

l

43

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049

Unclassified
SECURITY CLASSiICATION OF TRIS PAGE

REPORT DOCUMENTATION PAGE la REOR SEUIYCASFCTO b RESTRICTIVE MARKINGS 3 DISTRIBUTION; AVAILAILITY 01- REPORT 2a. SECURITY CLASSIFICATION AUTHORITh

IForm Approved
OMBNci. 0704.0188

2bDECLASSFICATION

2b DWNGADIG SHEDLEDistribution ECLSSIICAION

Approved for public release-;__DOWNGRADIGSCHEDUL is unlimited,
5 MONITORING ORGANIZATION REPORT NIMBER(S)

4 PERFORMING ORGANIZATION REPORT NUMBER(S)

6a NAME OF PERFORMING ORGANIZATION

Naval Postgraduat e
School

f(if j

6b OFFICE SYMBOL

'7a, NAME OF MONITORING ORGANIZATION
Naval__Postgraduate___School

applicable)

NalPotrdteShl
__

361

6c. ADDRESf (Ct), State, and ZIP Code)

7b ADDRESS (City, State, and ZIP Code)

Monterey, Ca. 93943-5000
6a NA~ME OF ;W'.DINGI-SPONSORNIC ORGANIZATION -8c ADDRESS(Cit, Bb 0--FIC, SYMBO,

Monterey,

Ca. 93943-5000
0

applicaole)INS-TU (if

9 PROC ,REMET NSTUET-N~jAO ETDNi!C 10 SO,CE PROGRAM, CF FUNDING NUMBERS PROJECT

~ME ,fIBZ

StaeadZICdr

ELEMENT NO

NO

ITASK NO

__v"ORW UtiiT

ACCESSiONI NO

IiT.TLE (include Security Classification)

MORALE, WELFARE,
12 DERSONA.. AJN-OR(Si

CMUEIE ON-FSLSSSE AND RECREATION DEPARTMENT LONG BEACH, CALIFORNIA
,EO

Coltellaro-James J_
R , ',iE0--E:-73t

fune-1'990 427_____ SUPP.EMEN7AP* '40TA'0\ The views expressed in this thesis are those of-the autho. and do~not reflect the official policy or position of the Department of Defense or the Uj.S. Go P_________ as erIshesis (SA CU CODES 18 EjjCT TFRIS 'Continue on re~erse it necessary and idenJif by biocV numbi

TW1FCOVERE-__ RY.__O___

___

trP^

iYear Monrh,Da),

15 -AGZ co J

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This is a study to determine the need for a computerized Point-OfSales system for the NavyGolf Course Pro Shop located in Long Beach, California. All facets of the Pro Shop's operations were examined including inventory control and cash management. An analysis-into which particular system to procure-was based on the ability to solve current problems, acquisition-costs and the ease of installation-and training.

(Cont;nue on rev ,sc~if necessary and identffy by block- number)

D0

4.Rit,'AB8-, v4

' SSIF ED 17VL.'TE,_

0' ABSTA' S- .1; A

.25~C f r

Unclassified are obsolete

~CR v

,

C,;Sc,,'CAT '1'.

OD Form

1473, JUN 86

Pf-.1~q'r,s

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VN012-F-146i'

Approved lor public release; distribution is unlimited. Computerized Point Of Sales System Morale, Welfare, and Recreation Department Long Beach, California by James J. Coltellaro Lieutenant, United States Navy B.S.C.E. Villanova University Submitted in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE IN (Financial Management) from the
NAVAL POSTGRADUATE SCHOOL

June, 19-90 Author: VIA Approved by:
Leslie
.

L --,.ams J. CoItellaro4_______________________ ambo, Phd. Thesis Advisor

Glenn D. Eberling

Seond-Reader

David R. Whipple, Chain, Department of AdminiStrati3

ii

ABSTRACT This is a study to determine the need for a computerized Point-of-Sales system for the Navy Golf All Course P'ro Shop

located in Long Beach, California, Shop's operations and

facets of the Pro

were examined i;:cluding inventory control An analysis into which particular

cash management.

system to procure was based- on the abijity to solve current problemsi training. acquisition

costs and

ease of

installation and

Aoession -ForNTIS -GRA&I -DTIC TAB UnannouncedJustifioationBy-

Distribution/ Availability Oodes Avail and/or

Dist

Sneoial

iii

!

TABLE OF CONTENTS

I. INTRODUCTION

.

.-

..

..

..

..

..

..

..

..

..

.

1 1

A. BACKGROUND...................... B. OBJECTIVES...................
C. RESEARCH QUESTIONS D. METHODOLOGY ....
.

.
...
. .. .

.
. ... ..

.
..

... .. ... ..
.. .. .. .... ..

......

2

E. ORGANIZATION OF-STUDY .................. 3 I.NAVY PRO SHOP-LONG BEACH CALIFORNIA A. B. THE PRO SHOP .................... 44

.

.

...

..

..

CURRENT SITUATION/PROBLEM AREAS ............ 4 .. 7 7

III. ALTERNATIVES . .................... A. 'PCSSTBlE-SOLUTIONS ..... K',B.
-

...............

LIKELY- BENEFITS FROM A COMPUTERIZED POINT-OF-SALES 7 SYSTEM .......................... 12

UM.,

SYSTIEM PROPOSALS ........................
'A.
',

REQUEST FOR BIDS.................12 RADIO SHACK PROPOSAL 01-3808.............1COMPUTERLAND.. . .................. 21

_.B, C. i D.
!V.

CTS CkSH REGISTER AND TERMINAL SYSTEMS. .. ..... 22
. . . . .

RECOMMENDATIONS ..............

23

V.

CONCLUSION......................26

iv

APPENDIX A (INSTALLATION) .................

)

APPENDIX B (TRAINING)...................29
APPENDIX C (PURCHASE ORDERS) 30

..

..

..

..

..

..

...

APPENDIX D (FINANCIAL STATEMENTS) ............. -LIST REFERENCES....................35 OF INITIAL DISTRIBUTION LIST.................36

33

I. INTRODUCTION A. BACKGROUND The Long Beach Naval Base Morale, Welfare and Recreation Department (MWR) commissioned a study to determine the need for a computerized information system for their Golf Course Pro Shop located at Cypress, California. If the need is

warranted, the MWR Department requested a- study to determine which particular system to procure along with assistance

with installation and training. [Ref. 1] economic available maximize climate for and the reduction of

Given the current appropri-ated every funds to

recreation reduce

facilities, costs and

effort

efficiency,

increase

customer

satisfaction will be considered during the study. B. OBJECTIVES The focus of this thesis is the determination of the need for a computerized information system for the Pro Shop, the benefits from such a system and if needed, which system to procure. C. RESEARCH QUESTIONS The primary research questions include: 1. Does the need exist for a computerized information system?

2. What wi1l

be the benefits if such a system is installed?

3. If needed, which system should be procured? Subsidiary research questions that will be investigated: 1. How is the in place system operating and in what areas can it be improved? 2. What is the cash management policy? 3. Will accounting functions be incorporated into the computerized system? 4. If a computerized system is deemed necessary, how will training be conducted? D. METHODOLOGY All facets of the daily operations at the Pro Shop were carefully examined. Accounting records were audited along Inventory controls, vendor

with cash management monitoring.

participation, lead times, storage capabilities, and quali-ty of merchandise interviewed all were evaluated. Store personnel physical were

concerning- stockouts,

inventories,

perceived customer satisfaction and current efforts required to keep the shop operating. additions or Customers deletions tiere to queried current

concerning

desired

services provided. Computer systems available from several vendors were evaluated on the basis of satisfying the needs of the shop, ease of installation/training and acquisition This is an implementation guide for use by the Pro If deemed necessary, the Pro Shop is going to have a

costs. Shop.

2

fully functional computerized system installed, tested, and operating thesis. E. ORGANIZATION OF STUDY The study is organized into six chapters as follows: Chapter II, Navy Pro Shop-Long Beach California. A brief description of the Pro Shop and its problem areas. Chapter III, Alternative Solutions. A discussion of with trained personnel by completion of the

alternatives available to solve problems described in Chapter II and author's recommendations. Chapter IV, System Proposals. This chapter will

describe the request for bids and proposals received from the various vendors. Chapter V., Recommendations. This chapter will analyze

the system proposals and make recommendations as to which to procure. Chapter VI, Conclusions. This chapter will detail any

decisions made by the Morale, Welfare, and Recreation, Department and status of procurement/installation.

3

II. NAVY PRO SHOP-LONG BEACH, CALIFORNIA A. THE PRO SHOP The Navy Golf Course Pro Shop, is physically located at Cypress Station. California, 23 miles from the Long Beach Naval

It's current inventory includes approximately 800valued at $100,000. Total revenues

1000 item categories

average $300,000 annually, approximately twenty-five percent from retail greens fees sales and the other seventy-five percent from and services. (For a complete Total breakdown of

income and expenses see Appendix D.) forty-five personnel,

employment is

thirty-five who maintain the course At any one time

With the other ten running the Pro Shop.

there are three to five people per eight hour shi-ft in the shop, which usually includes the manager or golf

professional. B. CURRENT SITUATION/PROBLEM AREAS Currently, a physical inventory is manually performed

every quarter by Pro Shop personnel.

The process is time

consuming and labor intensive, requiring the closure of the Pro Shop for two days while the entire staff work eight

hours a day to complete the task-.

Estimated costs include

$850.00 for labor and the loss of approximately $3,000.00 in potential sales. [Ref. 2] Foll-owing
4

the inventory,

local

records

are posted

on a Tandy

6000 computer, orde's

arc

placed for depleted stock with purchase orders

sent via

guard mail to the MWR department's central accounting office located at the Naval Base, Long Beachi. Due to limited

storage space, shop managers have no way of optimizing their space with items that move quickly and customers are forced to do without the Pro Shop's services during the two day inventory. In addition to not managing inventory correctly, the shop has a significant cash handling problem. Every month the

shop is routinely several hundred dollars over or under what the register tapes indicate, averaging Z.7 percent o5 total revenues for 1989, (Appendix D.) physical mechanical layout of the current This is partly due to the cash register with four and

cash drawers

located below

the counter-top

the fact that as many as three clerks at one time may have access to the cash register. The cash register is capable

of handling four separate clerks and the four cash drawers, but in the hustle to serve the customers, money is

mistakenly taken from and placed into the wrong drawer. This makes it impossible to balance the cash receipts with the register totals, and could invite fraud. The third and most important problem facing the shop is scton. As discussed above, there is usually counter which Clerk usually leads to over prices,

much confusion behind the longec than needed lines.

confusion

customer confusion over what he exactly wants or needs and the extra people behind the counter all add up to delays and irritation. golf. In today's competitive environment, the Pro Shop canjot afford to inefficient trends, close its doors to business nor It must stay operate in an on buying its own This is not the way to start a relaxing game of

manner.

up-to-date most of all,

competitive

activity, and,

sales and cost situation.

6

III. ALTERNATIVES A. POSSIBLE SOLUTIONS Several associated staff, options exist to alleviate the current problems with the Pro Shop; they include: increasing hiring more

reorganizing the cash

management,

training-, or any

automating

register/accounting

functions

combination of the above. Adding more personnel to shop staff would increase cost and inefficiencies; there are already too many staff

personnel -behind the counter. as a maintenance man when

The current manager started

he was sixteen, had advanced to

grounds keeper, then to assistant supervisor and finally to overall manager, devoting twenty-five years to the Navy Golf Course. No individual knows the course better, its

operating procedures, clients. handling

or its

relationship with MWR or its

Training needs to be increased in both proper cash procedures and efficient inventory control. A

computerized- information system or "point of sales system"in conjunction with increased t-raining and supervision

should provide for a more efficient, professional operation. B. LIKELY BENEFITS FROM A COMPUTERIZED POINT-OF-SALES SYSTEM A comphterized point-of-sales system is intended to give the shop manager the information needed to make critical

7

decisions profits

in and,

a

timely more

manner

to

increase

sales,

raise

importantly, is

increase

customer that

satisfaction.

"Point-of-sale"

a software

program

provides cash register functions on a computer workstation. The point-of-sales system handles all aspects of the retail operation, statements. from sales transactions to monthly financial

The point-of-sales system should provide

the following immediate benefits to the Pro Shop:
-

Collect information at the register regarding sales and inventory, (ie. identify how much each clerk sells, which days or time of day is best for moving the most inventory, etc.)

-

Provide current inventory and customer information available to checkout staff, (ie. has the individual's custom order been received yet, are a certain brand of -olf balls available from the stock room, etc.)

-

Reduce costly checkout errors and help to control inventory.

-

Improve cash and merchandise controls and accounting efficiency.

-

Improve the timeliness and accuracy of sales analysis reports.
Sales analysis is im-proved by:

-

Displaying sales and receipts for the day, week, month, or year-to-date.

-

Displaying sales by register, department, salesperson,

method of payment, or other customized categories.
-

Producing historical reports based on sales activity, customers, inventory, or cashier performance.

The system should increase accounting efficiency and reduces accounting costs by: - Automatically transferring accounting infnrmation to the general ledger. - Maintaining detailed accounting records.
-

Printing financial statements in formats designed by the user. A computerized point-of-sales system requires each clerk

to enter a four digit code before each sale, thus allowing only one drawer at a time to open, reducing the possibility of cash mishandling. Management is able to generate reports

indicating sales by clerk, sales by the hour, sales by the day, etc., with exact amounts of cash to be in each drawer. In addition to the basic information system, a faster

means of entering the data into the computer will greatly reduce waiting time in the checkout line. Bar codes provide

a faster, more accurate, more cost-effective means to enter information into the of computer black bars data based system. A

structured series each bar code.

and white spaces

creates

An input device, commonly a light pen, reads Each item of inventory

the bar code in either direction.

has a human readable label as well as a computer generated bar code which will be read by the light pen, entered into 9

the computer with a sales slip printed for the customer. Audible and visual signals instantly confirm a "good read." The decoder then inputs the bar coded information into the computer, This just as though it time and were typed on money with and the keyboard. asset

method

saves

improved

management,

increased

productivity,

dramatically

improved data accuracy. code reader, provides

The computerized system, with bar fast, efficient customer checkout,

speeding the customers through the line and onto the first tee. In addition to merchandise purchased, non-tangible

items such as a round of golf, lessons, or club cleaning has a bar code laminated to the counter top to record the sale. Anything that will make the customers happy and willing to return to play "another round" is considered important. Long term benefits include reduced operating costs both for the Pro shop and Department the at Morale, Welfare the Naval and Recreation This is

Accounting

Station.

accomplished by an increase in efficiency at

the Pro Shop

with the possible reduction in the number of clerks required per shift required and by a significant to analyze savings the will shop's be reduction in the manhours daily reports. when an Even more electronic

significant

realized

modem is installed at the Golf Course and at the Accounting Department. The routine accounting data will be transferred electronically over the telephone wires. Installation of

10

this system enhancement is anticipated within one year after the start of on-line operations. With plans for future expansion underway, a computerized Pro Shop will be on the cutting edge of retail golf course management. The large retailers such as Nevada Bob's and computerized point-cf-sales associated the per with a

the public courses do not have systems. omputerized savings of Given the

advantages system, $4,000

point-of-sales approximately

estimated quarter by

cost the

elimination of the quarterly inventory and the anticipated improvement in customer service, the decision was made to

submit requests for bids for a computerized system.

y1

IV. SYSTEM PROPOSALS A. REQUEST FOR BIDS A "Request For Bids" was sent to several firms, local computer

(Tandy Corporation, Computerland, PC People, Legacy Systems, MicroAge, ComputerCraft, and Computer

Computer

Works,) keeping in mind the need to transport the system to the Long Beach area. Also investigated was Cash Register

and Terminal Systems, a Huntington Beach company that sold the Golf Course its current electronic cash register, a

Sharp ER-3300. Based- upon initial observations of the Pro Shop, the

number of items of inventory, annual

sales and anticipated

future expansion, a 286 based microprocessor was considered to be the ideal combination of power and affordability.

Software would have to be simple to operate and be able to produce reports compatible with current accounting practices and Navy MWR regulations. able to:
Record sales and returns.

The system would have to be

-

Register correct prices, even for quantity discounts, special customers or limited-time promotions.

-

Price merchandise by either key entry or laser scanner/bar code.

12

-

Identify merchandise by number, department, or description.

-

Automatically add state and local sales taxes. Print sales receipts, payment receipts, and invoices.
Correct or void sales.

Accept combined payments of cash, checks, credit cards, vouchers, and coupons.

-

Record balances in cash drawers.

The machine would significant warranty. to be provided. that the system

have

to be

durable and backed by

a

Installation and training would have

Based on above requirements and the fact would cost over $2,000, the fol-Lowing-

"Request For Bids" was submitted:

REQUEST FOR BIDS System Requirements: A PC/AT acting as for controlling a Point-Of-Sale inventory System and for cash flow while a small -retail

operation with approximately 1000 items of inventory worth $100,000 and sales of $300,000 annually. easy to operate, must be able The system must be

to interface with current

Sharp ER-3300 cash register and should be expandable to be able to use network software in the future.

13

Specific Hardware/Software Requirements:
-

16-bit 80286 microprocessor at 10 MHz with built in real-time clock with battery backup.

-

system key lock 640 K RAM expandable to 16MB One 3.5" 1.44 MB Floppy Drive 40 MB Hard Disk with controller 4 16-bit and 3 8-bit expansion slots

12" Monochrome Monitor with monochrome graphics card 101 key enhanced keyboard One serial and one parallel port 60 MB Tape backup including one tape cartridge
24 Pin dot matrix printer and cables 250 W backup power supply MS-DOS/GWBASIC 3.30 Barcode Scanner--Lightpen

POS Software with sales analysis capability--must be able to print and read bar codes; ease of use #1

priority.
-

1-year on site warranty **Training and Support **System Installation

-POINT OF CONTACT:

JIM COLTELLARO 125 SURF WAY APT 409

MONTEREY, CA 93940 408-649-8959 14

The

following of

are each

proposals system

received

and

a

in-depth and

description

outlining

strengths

weaknesses along with conformity to the Pro Shop's needs.

B. RADIO SHACK PROPOSAL 01-3808 [Ref. 3] Tandy Corporation (Radio Shack) was the most helpful, and with the help of a system engineer, designed three

integrated systems which came closest to meeting the needs of the Pro Shop. The following is Tandy's response to the request for bids: Radio Shack 01-3808 1050 Del Monte Center Monterey, Ca 93940 Proposal For: Navy Golf Course MWR, Long Beach, California

System Requirements-: A PC/XT for controlling list inventory, cash fl-ow-, rank, and a

segregated

customer

divided by military

while

acting as a Point-Of-Sale System.

The system should be easy

to operate, able to interface with the customer's electronic cash register, and should be expandable to be able to use network software in the future should the need arise. Proposal: Taking employees ~15 into account to t-hat time, there will be a turnover of is

from time

training key supervisors

essential

to

the

successful to

operation

of

the

system.

Hardware should be kept

a minimum, with a fixed disk

drive running the system while in use, a tape back-up system to be used daily, should there be a system failure. We

suggest that back-up tapes be kept at a separate location in a fireproof vault. From previous experience, we suggest a simple yet

powerful computer system, supported by training, and on-site service. In the case of future expansion into a multi-user system from DOS, it is easiest and least expensive to change over to SCO XENIX, as SC0 has provided data translation software for this purpose. Additionally, by choosing SCO XENIX as

the network software, this will allow for future terminals to be DT's, known in the field as "Dumb Terminals." We have chosen this proposal. the foil-owing software applications for

Software can also be added or changed in the

future, and when the system nhanges to network, upgrades are available for changing languages. At the time of the

change-, data will not have to be re-entered into the system.
REALWORLD SYSTEM KIT REALWORLD SALES ANALYSIS SYNCHRONICS POINT OF SALE MS-DOS VERSION 3.30

The Synchronics POS Application software uses a RealWorld base. As the industry standard
16

for retail

marketing and

inventory solution.

applications, This

RealWorld will

is

by

far with

an bar

ideal code

software

interface

readers, as well as all other peripherals. On the system, the user will be able to print bar-codes on labels attached to items for sale, attach these lakels to the items, and scan the codes on the system for use in

inventory control also supply the

and stock management. user with a customer

The system will listing. This is

performed by assigning each customer with an identification number. Each time the customer returns, the sale is

recorded as follows: I. Sales clerk obtains customer ID CODE and enters it into the POS. 2. Sales clerk passes the bar-code wand over the merchandise being purchased.

3. Sales clerk enters any non-tangible services such as club rental, cleaning services, special order merchandise. 4. Sales cl-erk tells customer price of sale. 5. Sal-es clerk enters into POS type of payment. -6.Sales clerk gives receipt of sale to customer. Items currently on sale are priced as such and will be recorded as being sold at the sale price. The Sales

Analysis software can be programmed to report on how well the establishment has as to done how for a on such a sale and give Sales to be

-management ideas analysis also

to increase "Model 17

sales.

allows

Inventory"

entered by management.

This is very useful when ordering

stock into the establishment. Each day, management prints up a "Daily Report" of items sold, which segregates type of payment, quantity of items or services sold, and gives the correct amount of cash, checks and credit card totals that day. should be deposited for that

Also, each clerk has an ID CODE that identifies that ticket. The POS can be programmed to so

clerk on the sales

identify sales by individuals, sales by the hour, etc., that the management may improve scheduling. SYSTEM HARDWARE: [Ref. 4] Stock No. Description 250-4072 250-4082 250-4079 250-3012 250-3046 260-2818 260-0250 2-60-0246 260-0223 Qty Price 999.00 799.20 69.95 55.96 499.95 399.96 149.95 119.96 67.50 54.00 499.00 399.20 379.95 303.96 37.95 30.36 39.95 31.96 Amount 799.20 55.96 399.96 119.96 54.00 399.20 303.96 91.08 31.96

TANDY 3000NL Less 20% Discount IN 128K MEM KIT HL Less 20% Discount iN 60MB TAPE BACKUP Less 20% Discount iN VM-5 MONO MONITOR Less 20% Discount IN MONO TEXT ADAPTER Less 20% Discount IN DMP300 PRINTER Less 20% Discount IN 250W BKUP PWR SUP Less 20% Discount IN 60MB TAPE CRTRDGE Less 20% Discount 3N 12PRCBL 3-4000/LT Less 20% Discount IN

18

250-4109
260-0240 903-3279

MS-DOS/GWBASIC
Less 20% Discount iN 6' SHLD RS232 M-F Less 20% Discount IN SYNCHRONICS POS Less 20% Discount IN SYNCHRONICS RETAIL INVENT Less 20% Discount IN

119.95
95.96 17.95 14-.36 995.00 796.00 795.00 636.00 95.96 14.36 796.00 636.00 240.00 156.00 59...00

903-1389

903-2744 903-1437
SYSTEM 250-4057 250-4058

SYNCHRONICS CUSTOM LBL
Less 20% Discount IN

300.00
240.00

RW SYS KIT-DOS
Less 20% Discount 1N 40MB HD KIT 4OMS HD ONLY CONTROLLER iN iN iN

195.00
156.00 599.00 799.0-0 249.95

12 MONTH COMPUTER ON SITE TSP FOR 250-4072 MOjEL 3000 NL IN 12 MONTH COMPUTER ON SITE TSP FOR 250-4082 128K MEMORY KIT iN 12 MONTH COMPUTER ON SITE TSP FOR 250-4079 5 .25 60MB INT TAPE iN 12 MONTH COMPUTER ON SITE TSP FOR 250-3012 VM5 MONITOR -(-14-'-) IN 12 MONTH COMPUTER ON SITE TSP FOR 250-3046 MONOCHROME BD iN 12 MONTH COMPUTER ON SITE TSP FOR 260-2818 DMP 300 IN 12 MONTH COMPUTER ON SITE TSP FOR 260 -0250 BPS 250 iN 12 MONTH COMPUTER ON SITE TSP FOR 250-4057 40 MEG INTERNAL HD1N 12 MONTH COMPUTER ON SITE TSP FOR 250-4058 HD CONTROLLER iN TRAINING AND SUPPORT, 01-3808 SYSTEM INSTALLATION 19

95.00

95.00

3.00 29-.-50 22.50 36.75 96.75 51.75 75.00 25.00

3.00 29.50 22.50 36.75 96.75 51.75 75.00 25.00 150.00

TRAINING AND SUPPORT, 01-3808 TRAINING 4 PERSONS 8 HRS SYSTEM TOTAL Tandy also provided two other options proposal. to

720.00

$6,097.85 the oziginal

Their second proposal included the Tandy 2500XL

which provides a faster clock speed, 384K more memory and color VGA graphics. the first proposal. Tandy's third proposa-l was a NETWORK PROPOSAL: We suggest that if the client plans to change to a network within the first 12 months of using the system, that the This The additional cost was $680.00 above

network be shipped instead of the single user system.

will increase the cost of the investment in the first year, but will decrease the overall cost, in hardware, software,

and time, as the network can be installed at one time, and software will not have to be repurchased and switched over to the network software. XENIX OPERATING SYSTEM Required software would include: 286, REALWORLD XENIX SYSTEM KIT,

REALWORLD XENIX

POS AND TANDY DT-100/CONNECTING HARDWARE,

total system price $8,091.83. While the above systems were impressive they did not

include the bar code decoder, bar code s'anner (light pennor the software to print the labels.

20

C. COMPUTERLAND [Ref. 5] Computerland's proposal was totally inadequate: Computerland 1220-41st Avenue Capitola, Ca 95010 (408)-476-6170 Product 286 Epson lIE Computer (Step Above ARCHIE SYSTEM) 1MB RAM, 5 1/4 1.2 Mb Drive, 40 Mb Hard Drive EPSON 12" Monochrome Monitor wit-h Card Complete POS-Software Compatible with SBT Accounting BTC Barcode Scanner EPSON-80 Column Printer and Cabl-e Cash Drawer Complete Price= $4,495.00 The internal above tape quote did not include a power backup, or a

backup,

training-, installation

support.

When Computerland was pressed for these items they stated that each store was a franchise operation and they would sell me the package but would not travel to Long Beach to install, train or maintain the equipment. Computerland of

Long Beach was contacted but they never returned a proposal, stating that they have little experience in point-of-sales systems.

21

D. CTS CASH REGISTER AND TERMINAL SYSTEMS [Ref. 6] CTS Cash Register and Terminal System was interested in

selling the Pro Shop a software package called "Carefree" for $750.00 which would work with the electronic cash

register that they had previously sold the shop but it would not read bar codes. system together. They were not willing to put a computer

They stated any IBM compatible would do.

22

IV.

RECOMMENDATIONS

Based on the above responses from the Request For Bids it appeared that the Radio Shack proposal 01-3808 with the needed additions, (light pen, decoder, etc.) would provide the best coming overall system for to the are of the money. Request already For In addition to Tandy in the

the

closest computers department any

Bids,

Corporation accounting This when,

installed and in

Morale,

Welfare

Recreation. the future to to transmit the Long

eliminates after

compatibility problems it will be data

training, all Base

possible directly guard

electronically Beach Naval

accounting vice the

tedious

mail

methods

currently used.

This should also eliminate costly errors

and accountant's time analyzing the source of the errors. It also appeared that the Tandy system, in conjunction with the Synchronics software, was the simplest system to learn to use. Research into which bar code scanner and decoder to

procure led to the following options: - WORTHINGTON DATA SOLUTIONS: Scanner and Label Right I software $698 with one year warranty.[Ref-. 7] AMERICAN MICROSYSTEMS: Scanner and Print Bar II software $829 with one year warranty. [Ref. 8]

23

-

PERCON INC.: Decoder, wand and Writebar software $850 with five year warranty. [Ref. 9] Synchronics Corporation, manufacturer of the software,

was contacted and they immediately recommended the Percon system for 100 percent compatibility with the point-of-sales software under consideration. [Ref. 10) Based upon their

recommendations and the five year warranty, the decision was made to procure the Percon decoder, scanner and Writebar

labeling software. The Percon made it the decoder offered additional scanner of choice. The features which connects

decoder

directl-y between the computer and the keyboard.

When a bar

code is scanned, the computer thinks the information came from the keyboard. The keyboard is always fully active, and

with the Percon system there would be no software changes. The Writebar software included with the decoder is necessary due to the fact that most Product golf equipment (UPC). lacks the

standardized interfaces

Universal the

Code

Writebar the

with

Synchronics

inventory

portion of

point-of-sales

system and automatically produces

labels to

match the inventory. to the inventory labels. it

When additional merchandise is added will instantly produce the required

amount of

The Percon decoder is also -designed to anticipating pecularities in k

read dot matrix labels,

bleed, contrast variation, and printhead positioning.

24

The

entire of

process the

took various

over

two

Tnonths for

of

constant

pressuring

rztailers

proposals,

information about compatibility, training and installation. It was difficult to find one company willing to put a

complete system together needs. even

that would accomplish the stated came

Tandy Corporation was the only company that close are to matching the the Bid Proposal. of the Maybe big

$7,000

systems

below the

threshold

companies What sales

considering they

training

and support

requirements. for future

did not the

realize was

the potential and

within

Morale,

Welfare,

Recreation

organization

should this system prove to be successful and a money saver. The bowling alley pro shop, sporting goods store, and

recreational

equipment issue are all

taking a wait-and-see or failure

attitude based upon the golf with a computerized system.

course's success

25

V.

CONCLUSION

Radio Shack system 01-3808 was purchased 26 February 1990 at a total cost of $6,097.85, along with the Percon

additions of $850.04 for a total system cost of $6,947.89, (Appendix C.) System installation was scheduled for 16

March 1990 with training to follow.

26

APPENDIX A INSTALLATION

Hardware During the

installation began installation

16 March 1990 it became

as

planned. that

process

obvious

existing methods of accounting for inventory would have to be changed. ments Where in the past, shirts were listed as either they now could be categorized in many

or women's,

different ways, by color, vendor, small, medium, large etc. This allowed for much of greater flexibility line items All new and it also

increased the number

inventory

from eightline items

hundred to between 2,500

and- 3,000.

would have to be generated, which was estimated to take as long as three weeks, given the current work load at the Pro Shop. During installation, the addition of golf carts to the computerized benefits. tracked data base provided additional, unexpected

Cart usage and maintenance will be automatically and monitored for unusual wear patterns, extra-

ordinary maintenance or other unusual wear and tear. A meeting was scheduled for Monday, 19 March 1990, with Ifto the Morale, Welfare, and Recreation Department's accountants discuss the adequacy -of the reports generated by the computer and related software. The immediate goal was to be

27

able to remove the current cash register and eliminate the need for sending the daily tape from the cash register to the accounting the office account located at the Naval Base. by In the

addition,

classifications

generated

computer must match the current financial report generated by the accounting department (Appendix D.) The computer

will allow revenue to be broken down numerous ways: greens fees, lessons, Pro Shop sales, club cleaning, cart rental, etc.vice program revenue alone, allowing management to

better allocate resources as needed. The Morale, Welfare, and Recreation accountants agreed to the system reports and were excited by the possibility of not having to examine the cash register tapes on a weekly basis. [Ref. 11 ] Presently, inventory items are being entered along with new accounting after which classifications of bar for the financial can begin, reports, followed

printing

codes

shortly by

full system operations.

28

APPENDIX B TRAINING The bulk of the training is being provided by the Tandy Corporation California. Regional The Office system located in Garden who Grove,

two

engineers

initially

installed the system are available on-call to help with setup and initial problems. software technical single, is well In addition, all the hardware and with staff sheet easy-to-understand to clerk produce a

documented Pro Shop

manuals. laminated

intend for

instruction

referral

during operation.

29

APPENDIX C PURCHASE ORDERS

1AYCMPT FORM 22!3 (5 (REV. 3-72) 8/1 C104-LF*706-53We3 C03 ?lox*. MORALE WELFIRE MD RECREAT'ON LM -398 1AVA: STAT:CN LONG 3EACK C.'A 9f0822-5SCOCf0 IN:

10.vI!Dl?! o

2/26/900

?CURC!AS ORDEI 10. CC DIE1R TO: MWR/GOLF COURSE B=D 398 NAVAL SAT:OX LONG BEACH, C.90822-50"C

?ERCVON Z.NCORPOR"E'd 2190 W. 1l'IT AME EUGENE CR 970 ATY: R0B3 !OESTER

GUMMEYEI: 30ir; ;overne! by :S'rZto:S, hereo, please-etter onr order for the !o:1ov:c: gQ-31my IOESCVRIP0C S'~EL c-e:-: ANDPN I SOF'rWRE 9KT:Z-BhR ~:
2**

"3! EA _C EA

PRC%,E
701.0AV.0

a0"3

m,4 9.CC'w

9-IV, V

,AST :::,.x*

T

0

K850.04

'.AME REQF1RE.' )SCM0 I TERMS VIA SIATIM 0? AMORUZ' XIPESEITATNEAM. 'E~ 33 ZGERA:D EAO~ ~~D::!E "I9 9~~~ A. Separate =nocs~st !-or each or;.er. be renierei B.o co' ?a.kivoc vith terchana'ise; tai -;d.r separate cover. C. ratsportation :har;e, Y4.: applhcable, s mF2 address of this activity and Purchase order lo. mus ae and appear n: a:: dcrtsa::ouparn; or haerference to deiv1-ery ofthis order. E.SHE RMVRS! 0? M.'S SEM ?R 0*RR :KHNS~R:~. CNOf C I EAIPAYMENT. 30

APPENDIX C (CONT-.) PURCHASE ORDERS 11PUCEAS ?0R22:3 (5?: (R!?. 3-72) 8/1 CO"Y4-lu-7C6-530C ?ROM: YORK~E WELFLRE ILI" RECEA:.:ON 3LJDG 398 NAVAL STAT:ON 9.0. RA"010 SHtACK COm?T'!l C0Y"s "CU DEL MONT! C!7NTER XCNEREY CA. 93940 V.7N: W.UCE ?ACLUKER AC0!: Y C. DAT 132C3 ?"RC3SZ C03!3 NO. W0C60 2.1114!R 810: MWR IGOLF CVURSE BIDG 398 XAVYAsm:: LONG BEACE', CA. 9-822-5C

2126!9C

IONG BEACH CA 90822-501C

GU?!!N: ei~ggover-.ed by i:strucrtions, hereoz, Psae enter ou order !or the ooig

I 250-4C72 PN'Dy_3A00N: K_ 1 25C-4082 :28 KM_-X I 25C-4C79 6CM'3 T'A? BA.KT
M ON~C 250-3A%-2 V.-5 Y.CMNC 25'd-3046 MOv TEsXT A?'-R 26C2S:8 :M: "A0PRNE ?WR W 26C-AV25P 250A BlkZKUP n

EA !A

799.20 55.96 39.00.6
1

-79S.20

55.910 301.096
:999.9 6 40 -399,20

1.9 L_701A 5.0 EA LA 399.20

S' ??'Y
7

EA
EA

96 30W3
96918 30k,, 39E3S

3C3.96

3

ZL2A B C 206C-0A246 ECM ALP r. -R GL

26.-C2 23 .2 ?R^CB'- 3-401/

Dh:! RE:R~i
9 WAC:U 199C

1::scoCK:

!ERKS

VIA
DE L:VLRL I E

SICKATCRE OFACTEORIUDB

RPSEITATIV!

IN E 7

AXES Z. FT.TZGERAL-

BILLING 1XVIRUCTIONSA.Separate imvices must be ,e:Aderel for each order. B.Do :ol. pack Lnvolce with terchandise; %a-;! under separate cover. C.!rarsportatio: charge, Vhen applUcae, tust be aide! to invoime 4ase rd : .j! -ae and address 3!this actin1. ay %rc Order No. must appehir ord2 er .ets accopatlins or have reference-o t, eiver
SEEVERS7 F:. S-27A VCR OTER KWSmR-: NS, SE.H RESULT NOTE: YOCCNPL!ANC! NIT! 1.1!SE 3l~srlUC?:ols VILLIl"il IN RETR OF IN1VOICE-AID DELAY PAYMENT,.

31

APPENDIX C (CONT.) PURCHASE ORDERS
CONTINUATION SHEET 050162 2/26/90

RADIO SHACK

250-4109 MS-DOS/GW BAS:C 260-0240 6'SBLV IS232 M-? S03-3275 S Y'R:. 'CSPOS 9C3-1389 RW RETAZI 0-2744 93%-:437 250/4057 250/4058 2 25'-4072
S
25- -C79

I A EA

95.96 14

796.C MNV.X. 636.C A 240.00 EA ET-DOS 0 156. MA 599,00 9^
EA

O L RW SYS 40 MB KD K:: 40 YS BD ONLY CONTRCLLER SYSTEM CO...TER ON S:TE TSP FOR .ONT MODEL 3000NL "5.C

95.96 .4.36 79cvC 636.,0 2400.C0
.56,1c

5991y00 95 .c 3.
29.50 22.5w 36.75

250-4C82 '28K 6M"'ORY

3.00
29.5c 22.50

5.25 60x3 :N: TAPE

!A

250-3:.2 V.S MO..?R (1-)IA 250-3046 MNOCCROME BO-?D

IA EA
EA A DRIVE IA

36.75

26A-28. D? 300
260-02S% BPS 260 20-4.57 .7V. .

96,75
5:175 75.00 5A 23.0

96.75
51.75 7.00 25.0

250-4C58 N'0 CONTROLLEi ;;
A:N:N S"?PORT 0-3808 M

SYSTM INSTALAT::ON TRAINING 4 PERSONS 8 HOMURS LAS LS** Y. TOTAL

LOT LOT

150.00 720.00 T.OTA

:50 .V 720. 6,0,7.85

~~" ~ ~ ? TAT~ED~HAV: TXCORORA:fE;' A 20% DSON S SYSTEM ?E3RUARY SALE PR:zC

32

APPENDIX D FINAICIAL STATEMENTS

S"AI1 OFBRA!OR STATUl

FOR FUIOD W1IG 3! 389 TB DEC ACCO

~

CMIS 20? DUCRIfICOK1 i07 1f111! 27904,90 !716,42 :013.48 IO0,O0 63,JS 36.35

C4Mi1r YD :0F TuI U8111! iLAR 75063.14 56063.55 900.09 100.00 74.69 25.3:

PROR

YT I OF RKnt!E1

11-30!-UI 11SES 1!V3112 XX-40:-XX COS: 0!G40.s SOlt Gross ?ro!t/Loss
--ter 0epartme:t Revel e-o IOGU. 3Y3 M 0T nn.!N!E

7839,38 100.0 682:3,6M 87.04 0:55,7: .2.96

XX-50!-XX IX-59-XX

77955.00 75.00 78030.0, 105934,90

73.64 73,66 :O0,0

2614:8,68 123,23 26154.91 336605,55 :20695.30 9672,06 7282,17 2034.7t 957,60 2759,34 12:20,88
2842.74

77,69 77,70 00.00 35.86 2.87 2.16 0.60 0.28 0.82 3,60
0,84

2'4076,90 0.00 2:4076.9 292446.2e

73,20 73.20 :00,0

oOt e,4 e nt Revenue : io:a: epanmet Revenue XX-60:-XX SAIAE1S & WAG.S XX-2:-xx 8H?:cY!R's SEAR o!mCA XX-622-XX ANA5 13AVE 3X? iS3 XX-623-XX SICTLEAE EX7NS. 1XX142-XX RUNIS XX-68:-XY & ~.!A:S -TA!CIS XX-683-XX M AS-& XX-685-XX
1!?A3:&-A! 7-BDG

40037,34 3248.35 2353.93 610.43 957,60 430.44 2283.02
1092,00

37.79 3.07 2.22 0.58 0,90 0.4 2,16
1,03

& FAC:,

XX'-86-XX N0 ?M0"BiY xX-lO:-xx SIM:ES XX-703-XX UAU:2Y 1X-721-XX 7RAYi. AK PIR DI!H lxx78:-xx A1v31:S:3 ANC ?0O::ON XX-782-X COKf! NC8 . & X-783-li Z A..EIBNS 0 1-799-lXX V!SAEI OUS XPINSI .o'a: 0epartent Bipense
*a*eParte

0.00 !138.14 9.75 800.00 :03820 0.00 96.53
35.00

0.00 1.07 0.0: 0.76 0.98 0.00 0.09
0,03

0 i5055.95 9.75 845.00 2:77.67 0.00 482.63
341.40

0.00 4.47 0.00 0.25 0.65 0.00 0.14
0.'0

::6262.89 41.44 9526.94 3,26 5820.66 :.99 388:.09 :,33 ":87,60 "0.36 33.67 0,'2 :0982,90 3.76 1258.00 0.43 1809.72 0.62 19303,.76 6.60 0.00 0.00 140 0 0.05 54.00 0.02 125,00 0.04 499.50 0.17 o!:.67 0.35 :72852.40 5380,2: 59.: :7.57

54:30.73 34042.75 32,:4

:77277.27 !:.:o :03264.73

52.67 30,6

?rofi/Iosst*t

33

APPINDIX D (CONT.)
FINANCIAL STATEMENTS

SUIHAtIY-0?SUTIOW STAIIMI

I".UT AC.01 f-60-00 IX-6&:-€ x-W-106 xx-l0:-O0 -'73!-00 XI-76-'00 I-763-00 fl-16S-O0 -767-00 11-784-00
DISCI:flON N0Eil

I OP
1lli!

UW.rU1 08
TUl lIt!

?1101 r. ,,0?
YTA 111191!

31;pee Ativity ce': &Adt:i SLARMI 111 110S z,: :tis ! A, "KIBH.. ?OS0AC! s;??2:s !IGEm & 711S.O.AION 0!?R !X.?-V'1CS !XWI &., ', P I'-3!G 4 !Az. "!. 03' 3X?-3 G & ? sAl!S VI!:.! CAUO !XEIs :ota: A.:!v:y C & ABzi N Ac,.. ?ro~!t/jlogt*t

0.00 6613.42 318.23 0.00 42.37 26.,37 6870.83 5.65 :65.25 3AC1) 2:3.4: :3541.53

000 000 6.33 2297:.14 0.30 :V30432 0.,00 356 15.6! 0.04 784.11 0.25 21404.27 6.49 16.95 0.0: 01.5 468.7% 709.39 0.20 13.73 47535.710 55729.03

0.00 -45,00 15485.42 6-82 !49.64 0.3! 0.O: 615.19 15,61 003 0.23 0.00 !69.33 6.3 16,95 0.01 767.40 0.14 021 400.05 14.!2 :6.56 35130.9 15650.02

-0,02 5.30 0.50 0.23 ' .: 0,00 5.80 0.0: 0.26 0.:4 12,22 5,35

1950:,22

.8.4:
0.::

-Other :.tole--

O. 0.8.2-00 AAS1 ..Iota. Other !ncoze

6.

.8

0,3:
9015..3

Ma: 6,.6.V1.5

~ .0& e~G&It~r' e/G2:1Of-e
--zter !xpecse-O 05-912-00 CASE SEOrAG! A7I. S R0R X? 0.-.. .... T

06050.9! .n , !N050

10.0 3372,66.." 293353.43 ......

"Ov.40 V

164,08
V.0

0.15
0.00

1247.49 685.12 1932.61 54396.9?

0.37
0.20

'42!.!7
0.00

0.48
0.00

ota: Other Expense t Pro.:t/Lost*'* .Net

164108 !9453.5

0.15 18.34

0.57 16.13

1421,17 15136.00

0.48 5.16

34

LIST OF REFERENCES

1. 2. 3. 4. 5. 6.

Gordon, Jack, Director, Morale Welfare, and Recreation, Memorandum, dated January 1990. Telephone conversation between Paul Moreno, Pro Shop manager and the author 5 January 1990. Ludwig, K. Radio Shack Proposal 01-3808, Monterey, California, 1 February 1990. Tandy Corporation, 1990 Tandy Computer Catalog, Fort Worth, Texas, 1990. Malliarys, N. ComDuterland Proposal, Capitola, California, 15 February 1990. Telephone conversation between WaLter Bretthauer, CTS Cash Register and Terminal Systems and the author, 31 January 1990. Worthington Data Solutions, Label ing Software/Bar Code Readers, Santa Cruz, California, May 1989. American Microsystems, Retail Price List, Euless, Texas June 1989. Percon Incorporated, Series 10 Bar Code and Magnetic Strip Decoder/Writebar Software, Eugene, Oregon, August, 1989. Synchronics, Point Of Sale/Software Product Inoai, Memphis, Tennessee, August, 1988. Meeting between MWR accountant, Dottie Hudson, Tandy system engineer John Mundell and Pro Shop staff 19 March 1990.

7. 8. 9.

10. 11.

35

INITIAL DISTRIBUTION LIST 1. Defense Technical Information Center Cameron Station Alexandria, Virginia 22304-6145 Library, Code 0142 Naval Postgraduate School Monterey, California 93943-5002 Professor Leslie Zambo Superintendent (Code AS/Za) Monterey, California 93943-5000 CDR. Eberling Superintendent (Code AS/Eb) Monterey, California 93943-5000 Ken Ludig--Tandy Corporation 1347 Kapiolani Blvd. Honolulu, Hawaii 96814 Jack Gordon MWR Director Bldg. 398 Naval Station Long Beach, California 90822-5000 Paul Moreno Navy Golf Course Manager 5660 Orangewood Ave. Cypress, California 90630 Jerry Coltellaro CEI Plaza Court Suite 135 545 Greentree Rd. Turnersville, New Jersey 080012 2

2.

2

3.

1

4.

1

5.

1

6.

1

7.

1

8.

1

36