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Essay Samples > Analysis > Decision Support System
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Decision Support System

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This paper presents an analysis of the necessary information to be entered into an information system, a decision support system, for the business of buying and selling the CDs. The owner is faced with the challenge of choosing the optimal quantity to purchase and stock. Any of such support system is designed with an aim of helping the owner to arrive quickly at decisions, which are evidence-based depending on the kind of data that has been input. It is therefore a right decision to adopt the use of the system since it is based on the market-based figures, which are fed into the system. It also simplifies decision making by providing an effective analysis.

In this case, the owner of the business would need the following information for the system. It is important to note that correct data used would provide effective analysis while incorrect data would lead to misleading analysis (Sprague and Watson, 1993). Therefore, it is important that correct and relevant information should be used. Market analysis data ought to be provided also. Comparative sales in the market, when analyzed would provide the likely demand for the products. This would act as a guide to the entrepreneur on what to expect once she gets down to business.

The prevailing price of the CDs is important. This, alongside with the quantity anticipated to be sold, provides the expected income levels from the sales. The period it takes for the products to sell is also relevant. When correctly approximated, it would provide an idea of how long the storeowner would wait before she realizes her income. Analysis of this kind of information, gives a clear picture of what the business offers to the owner. She can then decide wisely to proceed with the business, add more stock, or close the business completely.

Proper records must be kept of the recent sales of CDs. The periods when the sales were made are equally important. For example during holidays, it is expected that sales would be higher. The demography of the majority of the customers is also to be noted. This would help inform the owner on the content of the CDs to be purchased for sale. It is only rational that those products that command a high and steady demand are bought for sale. By maintaining such a database, it provides an avenue for easy analysis before any decisions are made.

Data about the CDs themselves is critical too. The various types available, how long they can stay effective, how often they are destroyed for example cracks, scratches, and how they are operated. The other gadgets required to work together, would also constitute necessary data (Marakas, 1999). Those that have minimal complications would no doubt be preferred. Their features as to resistance to cracks and scratches would be important information to the owner. Once she is equipped with such knowledge, she would thereby go for those that please the customers. For instance, those that stay longer before being destroyed would most certainly be preferred.

The locations that are convenient to customers ought to be taken into account too within the system. Young individuals as opposed to the elderly, mostly purchase CDs. The owner would no doubt need to know where to locate his outlets strategically, so that they could be easily noticed by potential customers. When this is appropriately done, it ensures that customers do not strain as they search for their favorite CDs.

Current trends in the entertainment industry are another area that the owner would need to be interested. This would give her insights into what kind of CDs, with what particular content that the market demands.

Having the above information within, the system provides a quick and efficient decision making strategy. This would ensure that the correct quantity is purchased and stored for sale. Hence losses would be minimized from extra purchase or stocking of unnecessary CDs. This therefore promises a better return to the business owner and hence the achievement of the business objective - making profits.

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