Chapter 9 and chapter 10

Enabling The Organization - Decision Making

There are some reasons why people need decision making system information system to be growth. 

• The decision must be done promptly
• Large amount of decision making that must be made
• Employees must secure their corporate asset of the company

Transaction processing system have two process in it which called

On line transaction processing (OLTP)

- capture transaction and event

- process the info

- store the info

- update existing info

On line analytical processing (OLAP)

- manipulate the info to create biz intelligence in order to support decision making.

There are 3 model of decision support system which is

1. Sensitivity analysis
2. What-if analysis
3. Goal-seeking analysis

These 3 model have the same function which is help people to make the decision but have difference in how they operate to make the solution.

Extending the Organization - Supply Chain Management

3 main links that exist in SCM

Material - flows from supplier and upstream supplier

Transformation - the process where the materials convert in product

Distribution - the product delivered to the customers and downstream customers

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Another definition of SCM is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally."