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Definition of MIS

~  management information system (MIS) is a system

or process that provides information needed to
manage organizations effectively
~ Management information systems are distinct from
regular information systems in that they are used to
analyze other information systems applied in
operational activities in the organization.
 

~ wo improve the management decision-making.

~ By providing accurate and up-to-date information
about the key aspects of organizational performance
 


¦.Management oriented :whe system is designed form the top to

work downwards.
2. Management directed : Management orientation of MIS, it is
necessary that management should continuously make
reviews.
3. Integrated : whe word 'integration' means that system has to
cover of all the functional areas of an organization so as to
produce more meaningful management information.
4.Common data flows : common data flow concept avoids
repetition and overlapping in data collection and storage

5. Heavy element :  management information system cannot

be established overnight. It takes almost 2 to 4 years to
establish it successfully in an organization.



¦.Data processing : It includes the collection, transmission,

storage, processing and output of data.
2.Function of prediction : It predicts the future situation by
applying modern mathematics, statistics or simulation.
3. Function of plan : It arranges reasonably the plans of each
functional department .
4. Function of control : It monitors and inspects the operation of
plans and comprises with the differences between operation
and plan.

5. Function of assistance : It derives instantly the best answers of

related problems by applying to various of mathematics' mode
and analyzing a plentiful data stored in computers .

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u Sam Walton, a businessman from rkansas,
began his retail career when he started work on
June 3, ¦ 40,

u He opened a new Ben Franklin franchise in

Bentonville, rkansas but called it
"Walton's Five and Dime.´

u On July 2, ¦
2, Walton opened the first Wal-Mart

Discount City store located in Rogers, rkansas.
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- whe importance of supply chain management and

logistics in modern day business.

u Wal-Mart's success is solely due to their efficiency in

supply chain management and logistics.

u Wal-Mart turns over their inventory on a weekly basis.

u K-Mart turns over their inventory on an average of three to

four times a year.

u Both companies have the same set-up and concept.

 

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~ ¦04 Wal-Mart stores and 3
Sam's Clubs, the company

has installed RFID readers at the receiving docks at the
back of the building, near the trash compactors and
between the back room and the retail floor.

~ For the cases of goods that are shipped to the stores

with RFID tags, Wal-Mart records their arrival by reading
the tag on each case and then reads the tags again
before the cases are brought out to the sales floor.

~ By using sales data from its existing point-of-sales

system, which is not using RFID, Wal-Mart subtracts the
number of cases of a particular item that are sold to
customers from the number of cases brought out to the
sales floor.
 


~ When a case is brought out to the sales floor, the

system records that it's being put out on the
shelves.

~ When the case is read at the trash compactor, the

status within the system is changed to "on shelf."

~ Suppliers can get updates on the location of their

goods within 30 minutes of the goods· movement
from one part of the store to another with a 
read rate.
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~ Wal-Mart uses Retail Link to provide vendors with the

information needed to forecast demand for their
products

~ Product is the Roll-on Insulator Kit,

~ wo accurately forecast, Use Retail Link to view the

historical sales of your product.

~ Insufficient work without the information provided

from Retail Link,.
~ Wal -Marts Retail Link extranet, it has begun to
integrate RFID process, radio frequency identification
data, to the original 7 Wal-Mart stores in wexas.

~ whis technology gives an accurate reading on what items

have been replenished, therefore not relying on people
to record the information.

~ By using this technology it will reduce out-of-stocks by

providing the location of goods with RFID tags.

~ It helps the retailer by sharing its data with the suppliers

automatically notifying when
~ items are on the shelves.
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~ Using the RFID tags, shipments are automatically

entered into their system, and each department has
a handheld "welxon" .

~ Every tag on the shelves is scanned to get on-hands,

and when an item is purchased at the register, it is
automatically taken out of their system.

 

 
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u wimber company
u Paper manufacture

u Packaging

u P & G or other manufacture

u whird party DC

u Wal-mart store

u Customer
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u Point-of-sale system :  computerized system that identifies

each item sold, finds its price in a computerized database,
creates an accurate sales receipt for the customer, and stores
this item-by-item sales information for use in analyzing sales
and reordering inventory. side from handling information
efficiently, effective use of this information helps Wal-Mart
avoid overstocking by learning what merchandise is selling
slowly.
u Over one 5 year period, Wal-Mart invested over $
00 million in
information systems.


u welecommunications : Wal-Mart use
telecommunications to link directly from its stores to
its central computer system and from that system to
its supplier's computers. whis allows automatic
reordering and better coordination. Knowing exactly
what is selling well and coordinating closely with
suppliers permits Wal-Mart to tie up less money in
inventory than many of their competitors. t its
computerized warehouses, many goods arrive and
leave without ever sitting on a shelf. Only ¦0 of the
floor space in Wal-Mart stores is used as an inventory
area, compared to the 25 average for the industry.
  





u whe idea of bar code scanning required that industry develop a

universal product code (UPC) system, a standard method for
identifying products with numbers and coding those numbers
as the type of bar code shown in the photo.
u whe use of bar code scanners made it unnecessary to stamp
the price on every item (except in states that still require this
for consumer protection). whis reduced costs but also
eliminated jobs of some of the clerks who formerly did the
stamping.
 



u
Wal-Mart has invested heavily in its unique cross-docking
inventory system. Cross docking has enabled Wal-Mart to
achieve economies of scale, which reduces its costs of sales.

With this system, goods are continuously delivered to stores

within 4 hours and often without having to inventory them.
whe system reduced the handling and storage of finished
goods, virtually eliminating the role of the distribution centers
and stores.

whe manufacturer directly forwarded the goods to a place

called the ´staging area.µ
u whe goods are packed here according to the orders received
from different stores and then directly sent to the respective
customers.

Lower prices also eliminate the expense of frequent sales

promotions and sales are more predictable.

Cross docking gives the individual managers more control at

the store level.


  


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u  company owned transportation system also assists Wal-Mart
in shipping goods from warehouse to store in less than 4
hours. whis allows Wal-Mart to replenish the shelves 4 times
faster than its competition.

Wal-Mart owns the largest and most sophisticated computer

system in the private sector. It uses a MPP (massively parallel
processor) computer system to track stock and movement
which keeps it abreast of fast changes in the market .
Information related to sales and inventory is disseminated via
its advanced satellite communications system.
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u In the early ¦ 70s, Wal-Mart became one of the first
retailing companies in the world to centralize its
distribution system, pioneering the retail hub-and-
spoke system.

u Under the system, goods were centrally ordered,

assembled at a massive warehouse, known as
¶distribution center· (hub), from where they were
dispatched to the individual stores (spoke).
g


u whe hub and spoke system enabled Wal-Mart to

achieve significant cost advantages by the
centralized purchasing of goods in huge
quantities..
D and distributing them through its own logistics
infrastructure to the retail stores spread across the
U.S.
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u Wal-Mart spends a significant amount of time
meeting vendors and understanding their cost
structure.
u By making the process transparent, the retailer
can be certain that the manufacturers are
doing their best to cut down costs.
u Wal-Mart finalizes a purchase deal only when it
is fully confident that the products being
bought is not available else where at a lower
price.
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u Employees at the stores had the ´Magic Wand,µ
a hand-held computer which was linked to in-
store terminals through a radio frequency
network.

u whese helped them to keep track of the

inventory in stores, deliveries, and backup
merchandise in stock at the distribution
centers.
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u In ¦ , Wal-Mart installed a voice-based order filling
(VOF) system in all its grocery distribution centers.

u Each person responsible for order picking was

provided with a microphone/speaker headset,
connected to the portable (VOF) system that could be
worn on waist belt.

u whey were guided by the voice to item locations in the

distribution centers.
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u whe VOF system also verified quantities picked, and
could respond to a variety of requests such as
providing product detail (type, price, barcode number,
etc.)

u By installing the VOF system, Wal-Mart eliminated

mispicks and product labeling costs since the system
did not require paper lists and labels to be affixed on
the goods.


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u whe company asked its suppliers to ship goods in
store-ready displays called pretty darn quick (PDQ)
displays.

u Goods were packed in PDQ displays that arrived at the

stores ready to be boarded on the racks.

u Wal-Mart·s employees could directly replace the

empty racks at the stores with fully packed racks,
instead of refilling each and every item at the racks.


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With the rapid expansion, it was essential to have a

good communication system. Hence, Wal-Mart set up
its own satellite communication system in ¦ 3.
u Wal-Mart was able to reduce unproductive inventory
by allowing stores to manage their own stocks,
reducing pack sizes across many product categories,
and timely price markdowns.

u Instead of cutting the inventory across the board, Wal-

Mart made full use of its Iw capabilities to make more
inventories available in the case of items that
customers wanted most, while reducing the overall
inventory levels.
   


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u Wal-Mart built an automated reordering system linking
computers between Procter & Gamble ("P&G") and its
stores and distribution centers. whe computer system
sends a signal from a store to P&G identifying an item
low in stock. It then sends a resupply order, via
satellite, to the nearest P&G factory, which then ships
the item to a Wal-Mart distribution center or directly to
the store. whis interaction between Wal-Mart and P&G
is a win-win proposition because with better
coordination, P&G can lower its costs and pass some
of the savings on to Wal-Mart.

u Retail Link connected Wal-Mart·s EDI(Electronic Data
Interchange) network with an extranet, accessible to Wal-Mart·s
thousands of suppliers.

u whe suppliers could find out how their product was performing
vis-à-vis competitors· products in a particular product category.

MPP
u whe company used Massively Parallel Processor (MPP)
computer system to track the movement of goods and stock
levels.

u ll information related to sales and inventories was passed on

through an advanced satellite communication system.
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u By the mid ¦ 0s, Retail Link had emerged into an Internet-
enabled SCM system whose functions were not confined to
inventory management alone, but also covered
collaborative planning, forecasting and replenishment
(CPFR).

u In CPFR, Wal-Mart worked together with its key suppliers on

a real-time basis by using the Internet to jointly determine
product-wise demand forecast.

u CPFR is defined as a business practice for business

partners to share forecasts and results data through the
Internet, in order to reduce inventory costs while at the
same time, enhancing product availability across the supply
chain.
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u whough CPFR was a promising supply chain initiative
aimed at a mutually beneficial collaboration between
Wal-Mart and its suppliers, its actual implementation
required huge investments in time and money.

u  few suppliers with whom Wal-Mart tried to

implement CPFR complained that a significant
amount of time had to be spent on developing
forecasts and analyzing sales data.
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u Smaller retailers

Primarily dollar stores, such as Family Dollar and Dollar

General, have been able to find a small niche market and
compete successfully against Wal-Mart for home
consumer sales. In 2004, Wal-Mart responded by testing
its own dollar store concept, a subsection of some stores
called Pennies-n-Cents.

u In China, Wal-Mart hoped to succeed by adapting and

doing things preferable to Chinese citizens.

.
u For example, it found that Chinese consumers
preferred to select their own live fish and seafood;
stores began displaying the meat uncovered and
installed fish tanks, leading to higher sales.

Experiment with a massive Hyper-mart, encompassing

more than 230,000 square feet in size failed.
Customers complained that the produce was not fresh
or well-presented and that it was difficult to find things
in a store so big that inventory clerks had to wear roller
skates.
 revised concept was launched- whe Super-center, a
combination discount and grocery store that was
smaller than the Hyper-mart.
u  one-stop shopping destination, Super-centers would
have the full array of general merchandise found in
traditional Wal-Mart stores, as well as a full-scale
supermarket, delicatessen, fresh bakery, and other
specialty shops like hair salons, portrait studios, dry
cleaners, and optical wear departments.

u Super-centers would measure ¦25,000 to ¦50,000

square feet, and target locations where sales per
store of $30 to $50 million annually were feasible and
it was a success this time round.