University of Memphis Management Decision Problem Answers

Management Decision Problem 2-8

Don’s Lumber Company on the Hudson River features a large selection of materials for flooring, decks, molding, windows, siding and roofing. The prices of lumber and other building materials are constantly changing. When a customer inquiresabout the price of prefinished wood flooring, sales representatives consult a manual price sheet and then call the supplier for the most recent price. The supplier in turn uses a manual price sheet, which has been updated each day. Often, the supplier must call back Don’s sales reps because the company does not have the newest pricing information immediately on hand. Describe how this process could be improved with information technology.

Management Decision Problem 2-9

Henry’s Hardware is a small family business in Sacramento, CA. The owners, Henry and Kathleen, must use every square foot of floor space as profitably as possible. They have never kept detailed inventory or sales records. As soon as a shipment of goods arrives, the items are immediately placed on store shelves. Invoices from suppliers are only kept for tax purposes. When an item is sold, the item number and price are rung up at the cash register. The owners use their own judgement in identifying items that need to be reordered. How could information systems help Henry and Kathleen run their business?

Note: These are taken from the textbook but the textbook asks several questions at the end of each paragraph. You are only going to answer the single question at the end of each paragraph above.

Answer each of the two questions above in a maximum of 250 words each. Do not answer with lists of any kind.