Information systems are software that gathers, pile, process, assess, and disseminate information for decision-making and administration in an organizational construct. A firm should choose an information system that enhances the coordination of its activities and is understandable to its staff (Markus & Rowe, 2018). Information systems have various components, such as the executive, management, office automation, and transaction processing systems (Markus & Rowe, 2018). The warehouse management system and itinerary planning system will aid the firm in the case study to solve its problems.
The Warehouse Management System (WMS) is effective in decreasing the available storage space without adversely affecting sales. A WMS is a network that tracks a business undertaking by processing raw data in an online documentation system (Torabizadeh et al., 2020). The system can either process data in clusters or exclusively as individual transactions. A WMS verifies the source of data entering the system, promoting the use of reliable data for analysis (Baruffaldi et al., 2019). The system also stores and updates information, easing its retrieval for decision-making.
An Itinerary Planning System (IPS) is vital in reducing the firm’s transportation costs through better planning. An IPS is a software program that collects and analyzes data, translating it into exhaustive information transcripts (Nomiyama et al., 2018). The first function of IPS is a model simulation by identifying the specific input variables used in making decisions (Rani et al., 2019). IPS also performs risks assessment of various variables that are essential in planning.
Factors Considered in Evaluating and Selecting the Proposed Solutions
The functionality of information systems is a vital component in selecting the proposed solutions. The information systems suit the firm’s needs as their utilization will help solve its problems. A WMS is designed to gather and process data, such as stock orders and delivery (Torabizadeh et al., 2020). An IPS is a multidimensional system that can accommodate various data and synthesize them into information essential for directives. The ability of the networks to consolidate with the existing frameworks is another factor considered in evaluating and selecting the proposed solutions (Nomiyama et al., 2018). The WMS and IPS can be integrated into the already existing organization’s system without disrupting the ongoing operations. Malleability is also essential in selecting an information system for the organization (Markus & Rowe, 2018). The proposed elucidations can expand to accommodate more data as the firm grows.
Inputs and Outputs of WMS
The square footage of the warehousing facility and its height are the inputs required to produce the output, that is, the size of the warehouse. The square footage of the storage area and the height of the highest pile of stock provides the storage size as the output (Torabizadeh et al., 2020). The storage size is divided by warehouse size to compute the prospective storage area as the output. The volume of all the computer components stored divided by the storage size gives space usage as the output (Torabizadeh et al., 2020). The number of computer components stored and their dimensions produce their volume as the output.
The order date, estimated delivery date, and actual delivery date inputs show the supplier’s efficacy as output. The date of delivery of a product, its distribution date, and warehousing costs portrays the holding costs of that product (Baruffaldi et al., 2019). Shipping, handling, and assembling costs give the set-up costs and total sales divided by the amount of each product gives the demand rate (Ben-Daya et al., 2017). The set-up expenses, demand rate, and holding costs give the economic order quantity as the output.
Inputs and Outputs of IPS
The vehicle registration number, model, and capacity provide the vehicle assigned for delivery as the output. The competency of the driver, load size, traffic size, customer location, time of delivery, and urgency of the delivery are the inputs that produce the estimated time for delivery as output (Rani et al., 2019). Fuel cost, driver’s salary and allowances, vehicle maintenance and servicing cost, acquisition cost, type of insurance cover, and cost produce the total cost of a vehicle as output. Canceled orders, and wrong, late, and disfigured deliveries are inputs that give losses due to deliveries as output (Nomiyama et al., 2018). The time of delivery, consumer grievances or appreciation of service delivery, and the condition of the delivered item constitute consumer feedback.
Benefits from Information Systems
The warehouse management system will enable the firm to reduce its storage costs. The space usage variable aids the firm to know the wasted space that contributes to extra cost to either get rid of it or put it into productive use (Torabizadeh et al., 2020). The economic order quantity from the WMS will help the firm determine the exact amount of computer components to order to save on warehousing and storage costs (Ben-Daya et al., 2017). The efficiency of the supplier variable will also aid in creating an agile supply chain. The total cost of a vehicle output from the IPS is essential to determining the optimum number of vehicles the firm can manage for deliveries (Rani et al., 2019). IPS provides consumer feedback, which is vital for improving service and enhancing loyalty.
Information systems process data into information, which is vital in decision-making and issuing directives in a firm. The WMS collects and processes data on inventory and storage space. An IPS gather, stores, and translates data into information to help in planning for transportation. An information system is chosen based on its functionality, ability to integrate with the existing systems, and capacity to accommodate big data.
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Rani, S., Kurnia, Y. A., Huda, S. N., & Ekamas, S. A. (2019). Smart travel itinerary planning application using held-KARP algorithm and balanced clustering approach. Proceedings of the 2019 2nd International Conference on E-Business, Information Management and Computer Science, 1–5.
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