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Answer of smu assignments of mb0047 Q1. A waiter takes an order at a table, and then enters it online via one of the six terminals located in the restaurant dining room. The order is routed to a printer in the appropriate preparation area, the cold item printer if it is a salad, the hot item printer if it is a hot sandwich or the bar printer if it is a drink. A customer’s meal check-listing, bills the items ordered and the respective prices are automatically generated.

This ordering system eliminates the old three-carbon-copy guest check system as well as any problems caused by a waiter’s handwriting. When the kitchen runs out of a food item, the cooks send out an ‘out of stock’ message, which will be displayed on the dining room terminals when waiters try to order that item. This gives the waiters faster feedback, enabling them to give better service to the customers. Other system features aid management in the planning and control of their restaurant business. The system provides up-to-the-minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales. This helps management plan menus according to customers’ tastes. The system also compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. In addition, whenever an order is invalidated, the reasons for the invalidation are keyed in. This may help later in management decisions, especially if the invalidations are consistently related to the food or the service. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. All potential users were asked to give their impressions and ideas about the various systems available before one was chosen.
 a)            What is the type of information system the above scenario is referring to?
 b)            How does this system helps later in management decisions related to food or service based on the reasons for the invalidation which are stored
 c)            How this system does helps in finding out the performance of the hotel form year to year?
a) Information system is referring to Transaction Processing System (TPS)
b) Transaction Processing System: A transaction is the smallest unit of any business activity. They are events that occur when the organisation interacts with its stakeholders like customers and suppliers. Transactions generate data which have to be stored and processed
to ensure the smooth operation of organisation. A transaction Processing System (TPS) stores and process this type of data. It captures data from e-commerce websites, self-service kiosks and point of sale terminals. The outputs of this system are reports and documents. These can be printed (hard copy) or can be stored (soft copy). Examples of TPS documents are salary slips, receipts and purchase orders. Reports could be payroll register or edit reports.
TPS are classified as online systems or batch systems.
c) It can be done through the method of forecasting.
 Forecasting: The use of historic data to find the direction of upcoming trends in business or industry. It uncovers patterns to predict future trends. The artificial intelligence system functions like a human being and helps a manager in taking quick decisions. They have the ability to adjust to the changing environment and thus are very flexible.


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