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California apparel line inc. (CAL)
You have been hired as a consultant to advise the President of CAL, Joe Weinstocks, as to what type of computer system he should install. CAL is a small, 50 employees, appear manufacturing firm, with sales of 10 million a year. The company manufacture women’s wear and ships there goods to retailers throughout this country and abroad. The line is middle of the road – it is not high fashion but it is not a budget line. The company maintains open accounts, (accounts receivable), with the retailers. The company also has open accounts, (accounts payable), with its suppliers. CAL maintains a large inventory of raw and finished goods. Currently, five of the company’s employees, (at a cost of $250,000 a year) are engaged in clerical and record keeping activities on a manual system. The profit decline that CAL has sustained in the last year in contrast with the rapid growth in profits of the past five years has been of great concern to MR. Weinstocks. In a thorough study of his operations he has found the following problem areas:
1. Large inventory of both raw and finished goods.
2. Slow response to retailer’s requests
3. Late deliveries
4. Lack of accurate and timely information available to management
5. Continued expansion of employment levels with no corresponding increase in profitability.
Mr. Weinstocks feels that a computer could solve all or some of his problems and he has hired you to advise him. You are to prepare a report answering the following four questions.
1. What type of computer(s) should he acquire? (LAN (peer to peer or Client Server), micro, mini/server or mainframe)
2. What items of software should he acquire and what applications will the software be used for?
3. What additional pieces of hard ware must he purchase and attach to his CPU?
4. What additional personnel, if any, would be required when the computer becomes operational? What will be done with the existing personnel?
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