16. The owner of two pizza parlors located in adjacent towns wants to computeriz

Question

16. The owner of two pizza parlors located in adjacent towns wants to computerize and integrate sales transactions and inventory management within and between both stores. The point-of-sale component must be easy to use and flexible enough to accommodate a variety of pricing strategies and coupons. The inventory management, which will be linked to the point-of-sale component, must also be easy to use and fast. The systems at each store need to be linked so that sales and inventory levels can be determined instantly for each store and for both stores combined. The owner can allocate $40,000 for hardware and $20,000 for software and must have the new system operational in three months. Training must be short and easy. Briefly describe three alternative systems for this situation and explain how each would meet the requirements and constraints. Are the requirements and constraints realistic? Why or why not

Explanation / Answer

The business should utilize a computerized point of sale system. With fewer keystrokes to press thanks to barcode scanning and smart touch screen technology, a Point of Sale system will process sales much faster. This is money in the bank in a busy retail business.

Greater throughput means a lower labour cost per sale and this can significantly improve the bottom line. Fewer mistakes also means a lower cost to the business of mistakes.

By having a record of all sales, the business is able to better report on product performance. This will improve the quality of the business decisions and this will, in turn, feed into better business performance.

Good information is better business decisions, this has been proven time and again in retail businesses. Thanks to additional features with retail software, many other manual processes, outside of actual selling, can be automated.

All of these functions are more easily and accurately undertaken with a Point of Sale system than a manual cash register operation.

This business benefits from a lower labor cost, better quality data and better quality business decisions

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