Chapter 7.2

Question 1

Explain Supplier management

Answer 1

Software used to manage relationships with suppliers, process purchase orders, and track supplier performance.

Question 2

Explain Financial transactions

Answer 2

TPS applications in finance departments handle financial transactions such as accounts payable, accounts receivable, and general ledger entries.

Question 3

Explain online transaction processing

Answer 3

TPS applications that support real-time processing of transactions conducted over the internet, such as online purchases and banking transactions.

Question 4

Explain point of sale systems

Answer 4

Software used in retail environments to process transactions at checkout, manage inventory, and generate sales reports.

Question 5

What is electronic commerce?

Answer 5

Conducting business transactions electronically over computer networks and corporate networks

Question 6

What is mobile commerce

Answer 6

It relies on the wireless devices to make transactions

Question 7

Explain the production plan process

Answer 7

-Sales forecasting: estimates future customer demand

-Sales and operations plan: takes demand and current inventory levels to determine production for future demands

-Demand management: develops master production schedule

-Detailed scheduling: schedules production run for each product and from one product to the next

-Materials requirement planning: determines the amount and timing of raw material orders with suppliers

-Purchasing: purchases raw materials and transmits to qualified suppliers

Question 8

Explain a Customer relationship management system and list its functions

Answer 8

It helps a company manage all aspects of customer encounters, including:
Marketing and advertising
Sales
Customer service after the sale
Programs to retain loyal customers

Question 9

Define sales ordering and list its activities

Answer 9

Its a set of activities that must be performed to capture a customer sales order,

including the following:
Recording items to be purchased
Setting sales price
Recording order quantity
Determining total cost of the order including delivery costs
Confirming customer’s available credit

Question 10

What are the Challenges that must be met by an operational system of a multinational company

Answer 10

-Different languages and cultures

-Disparities in IS infrastructure

-Varying laws and customs rules
Multiple currencies