1. What is a Transactional Processing and the role of TP systems. State the key objective of TP/TPSs.
TPSs monitor, collect, store as well as process datafrom all business transactions.
The objective of TPSs is to handle high volume and large variations in volume efficiently, avoid errors and downtime, record results accurately and securely, as well as maintain privacy and security.
1. What is a functional area information system? List its major characteristics.
Functional area information systems (FAIS) use information from mid-level management to help them plan, organise and control operations. They are crucial system as it supports a particular area of the business. They were traditionally built independent of each other and were designed to increase individual effectiveness and efficiency.
2. How does an FAIS support management by exception? How does it support on-demand reports?
FAIS support management by exception due to the use of exception reports. Exception reports include only information that falls outside certain threshold standards.
Ad hoc(on demand reports): they include requests for the following types of information: Drill down reports, key indicator reports, comparative reports.
1. Define ERP and describe its functionalities.
The multi million dollar system that combine all the systems in a company(planning, management, and use of all an organisations resources)
It can control all information flows across organisation to suit strategic goals by tightly integrating the functional areas of the organisation and enabling information to flow seamlessly across the functional areas.
2. List some drawbacks of ERP software.
- Very complex
- Expensive
- Time consuming to implement
- Change firms traditional work practices
1. Define a supply chain and supply chain management (SCM).
A Supply Chain refers to the flow of materials, information, money and services through the production process(from raw material suppliers, through to factories and warehouses and then to the end customer).
Supply Chain Managements (SCM) function is to plan, organise, and optimise the general supply chain activities.
2. List the major components of supply chains.
Upstream: procurement from external suppliers occurs (orders, information, payments, returns)
Internal: packaging, assembling, or manufacturing occurs
Downstream: distribution occurs (products, services, information)
3. What is the bullwhip effect?The bullwhip effect refers to erratic shifts in the supply chain
Chris Makers Powerpoints Notes
Section 8.6
1. Define EDI and list its major benefits and limitationsElectronic Data Interchange (EDI) enables different businesses to exchange business documents with mutual data formats.
Major benefits
- Minimises data error
- Messages secure
- Increase productivity by reducing cycle time
- Minimises paper usage
- Customer service enhanced cause things done quicker
Limitations
- Great investment to keep it going and to establish
- Difficult to build around flexible system
- Training required
- Requires long establishment period


























