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Selection of the Right Computer System

Golden's Magic Wand, located in San Marcos, California, sells novelty items, props for magicians and costumes. Most of the items are sold through a catalog, and the company engages in limited promotional activities. Sales for the most recent year were in excess of $11 million, and the company expects to improve on that figure at an annual rate of between five and seven percent. The owner of Golden's, Sam Golden, is concerned that the business needs a computer system to assist in the tracking of the more than 12,000 inventory items, but he is also concerned that the solution he chooses be able to last for at least seven years without needing more than rudimentary maintenance and upgrades. This research considers the type of solution which might be appropriate for Golden's, and recommends a search strategy for developing that solution.

The current environment at Golden's is not entirely a manual system, although there are significant components of the system which are manual. Currently, the accounting department has two 386 personal computers which are not networked. Both of these machines have Quicken installed, and the accounting staff has gradually developed Quicken for use with the accounting problems, such as general ledger, invoicing, statements and related items. However, orders are written down by order takers on the phone and are entered into the system at the end of the day. There is no centralized inventory management system; inventory cards are used in the warehouse to indicate when items should be reordered. Because the business is both cyclical and seasonal, some items are never replaced, while other items may be replaced several times during a season. Golden is convinced that an inventory management system tied to an order entry system would greatly improve his company's ability to avoid stockouts and overages on merchandise.

Payroll is handled by an outside agency (ADP), but Golden's must supply ADP with t...

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Selection of the Right Computer System. (1969, December 31). In LotsofEssays.com. Retrieved 07:30, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1696022.html