MIS Exercises - 1

Harbhajan’s Hardware, Bhatinda, Punjab

Problem Statement
• Harbhajan’s Hardware is a small business in Bhatinda, Punjab. Store space
is limited and the rent has doubled over the last 5 years. The store owners,
Harbhajan and Geeta, are under pressure to use every square foot of space
as profitably as possible.
• Unfortunately, the owners have never kept detailed records of stock in
inventory or of their sales. As soon as a shipment reaches the store, the
items are immediately placed on store shelves to be sold. Invoices from
suppliers are kept by Geeta only 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.
• Lately, however a number of problems have cropped up. Many times in
the recent past, the owners have been caught short and lose the sale.
Questions
• What is the business impact of the situation at the Harbhajan-Geeta
Store?
• How would you create information systems that help Harbhajan and
Geeta run their business?
• What data should these information systems capture?
• What reports should these systems produce?
• What decisions could the systems be used to improve?
Answers
• As they were not maintaining the stock records and the information of creditors and debtors, they
were not able to forecast the future sales.
• Management Information Systems because It summarizes and reports on the basic operations of the
organization for example Sales forecasting and Financial management and forecasting.
• These information system will capture the invoice information and the information of creditors and
debtors and will help in maintaining the stock records.
• These system will produce many reports like –
1. Monthly accounts of transactions.
2. Cash Flow.
3. Sources & uses of funds.
• These system can be used to improve in maintaining the stock and various information of creditors
and debtors which will help in further future sales and prevent the wastage the resources.