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chapter-2-lab-lab-assignment

Uploaded by

Surya Basnet
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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lOMoAR cPSD| 35660038

Chapter 2 Lab - lab assignment


lOMoAR cPSD| 35660038

MANAGEMENT INFORMATION SYSTEMS CHAPTER 2 LAB

Lab 2 Improving Decision Making: Use a Spreadsheet to Select Suppliers

Resources needed:

1. A windows PC with Microsoft Excel installed. If you need this software, follow
these steps to install it.
2. Ess13ch02_Questionfile.xlsx
In this exercise, you will learn how to use spreadsheet software to improve management
decisions about selecting suppliers. You will filter transactional data about suppliers based on
several criteria to select the best suppliers for your company.

Scenario: You run a company that manufactures aircraft components. You have many
competitors who are trying to offer lower prices and better service to customers, and you are
trying to determine whether you can benefit from better supply chain management. The
Assignments area under Week 2, you will find a spreadsheet file
(Ess13ch02_Questionfile.xlsx) that contains a list of all the items your firm has ordered from
its suppliers during the past three months. The fields in the spreadsheet file include vendor
name, vendor identification number, purchaser’s order number, item identification number and
item description (for each item ordered from the vendor), cost per item, number of units of the
item ordered (quantity), total cost of each order, vendor’s accounts payable terms, order date,
and actual arrival date for each order.

Prepare a recommendation of how you can use the data in this spreadsheet database to
improve your decisions about selecting suppliers. Some criteria to consider for identifying
preferred suppliers include:

• the supplier’s track record for on-time deliveries

• suppliers offering the best accounts payable terms

• suppliers offering lower pricing when the same item can be provided by multiple
suppliers. (extra credit)

Use your spreadsheet software to prepare reports to support your recommendations.

Information about the data:

• At a minimum you will need to be able to sort the database by various criteria such as
item description, item cost, vendor number, or A/P terms

1
lOMoAR cPSD| 35660038

• A/P terms is expressed as the number of days that the customer has to pay the vendor
for the purchase. In other words, 30 designates net 30 days. The vendor that allows
customers the longest amount of time to pay for an order would, of course, offer the
most favorable payment terms.

• You will need to add additional columns for calculating the delivery time for each order.
The delivery time can be calculated by subtracting the Order Date from the Arrival Date.
Vendors with the shortest delivery times are obviously desirable.

• These numbers are useful when trying to determine who is the vendor with the best on-
time delivery track record. Students can use the DAVERAGE or the SUMIF and
COUNTIF functions to determine the average delivery time for each vendor. You can
also use one of the database functions to determine the vendor with the best accounts
payable terms. To determine the vendor with the lowest prices for the same item when
it is supplied by multiple vendors, students can filter the database using the item
description. This filtered list can then be sorted by item cost and vendor number.

Deliverables:

• Your recommendations (minimum 100 words) that include the details of findings that
supports your recommendation. (25 Points)

Your recommendation must include analysis of:

a. the supplier’s track record delivery time

b. suppliers offering the best accounts payable terms

c. suppliers offering lower pricing when the same item can be provided by multiple

• Copy and paste the reports you ran to come to your conclusion. You should cite the
reports you used in your recommendation. (25 Points)
lOMoAR cPSD| 35660038

Recommendation of how you can use the data in the spreadsheet to improve decisions about
selecting suppliers:

As item description, item cost, vendor, name, or A/P terms. A/P terms is expressed as the
number of days that the customers have to pay vendors. Vendor gives more time to customer
to pay and offer them favorable payments. Using the daverage functions to determine the
average delivery items for vendor referring the first worksheet orders and suppliers. Referring
to orders and supplier’s worksheet the least amount of time taken was 3 days which was
durable products. Looking at on time suppliers the vendor 3 which is durable products as
average delivery time which is 4.92 which is good and quick but vendor 2 takes 15.91 which is
more hours consumed they should work on making it quick. In best accounts payable terms
vendor 3 has bet accounts payable terms as vendor 8 needs to provide more options. In
Supplier cost worksheet it shows the gasket suppliers shows items being sold and its delivery
days. Determining the vendor with the lowest prices for the same item when it is supplied by
multiple vendors, by altering the database using the item description. I would say they should
lover the manufacturing cios.

Orders and Suppliers


lOMoAR cPSD| 35660038

Most on Time Suppliers


lOMoAR cPSD| 35660038

Best Accounts Payable terms

Suppliers Cost

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