Guidance, pay very close attention to the following:
1. You should consider the differences between the Applications and Technology
layers as discussed in this class.
2. You should consider the Human Resources lesson as discussed in this class.
3. You should consider the Financial and Cost lesson as discussed in this class.
4. You do not have to consider every single tiny detail that could possibly be
discussed. However, you should ensure that each answer is substantiated by
information presented in at least one of the study materials provided (cite the
source) to you during the conduct of the course – or – your own research (cite the
source).
5. You may consult with subject matter experts (SMEs) in the IS/IT profession who
may provide guidance with this assignment. You must cite their contribution in
your references.
The Assignment has four (4) parts:
Part 1. Purchasing System Software acquisition (30 points):
1. Of the types of software discussed in the class, into what classification does this
software fall? In other words, what kind of software is the raw materials
procurement system? Is it application software? Is it operating system software? Is
it specialized software? You must explain why you selected the type?
2. The manufacturing procurement department wants to acquire a very specific
software package. There are other alternatives to this specific vendor or software
package that might be considered. ABC could evaluate other alternatives to
acquiring an off-the-shelf software solution.
The company could develop/write its own procurement system.
The company could hire outside programmers to develop/write its own
procurement system.
The company could approach their ERP provider to acquire a procurement
system.
What are the pros and cons of the off-the-shelf solution vs. the three alternatives?
You must explain your answer.
3. Into what major type of software does the EDI capability belong? You must explain
why? (See course discussion of the Applications Layer).
Part 2. Technology Layer considerations (30 points):
1. Into which major class of the technology layer does the server belong? You must
explain your answer? (See course discussion of the Technology Layer).
2. Into which major class of the technology layer does MS Server SQL belong? You
must explain your answer? (See course discussion of the Technology Layer).
3. Into which major class of the technology layer does bar-code scanning system
belong? You must explain your answer? (See course discussion of the Technology
Layer).
4. Can the server run without operating system software? You must explain why?
5. What type of technology would be implemented to allow the server to integrate
with vendors/suppliers? Note that the procurement department wants EDI
capability. (See course discussion of the Technology Layer, Hint: the question
regards connectivity to suppliers and carriers.).
Part 3. Personnel requirements (30 points):
1. What alternative staffing options might be considered to perform the initial
installation of the software and hardware system(s)?
2. Which of the alternative staffing options identified above (Part 3.1) would you select
if you were the manager in charge of implementation? You must explain why.
3. How would you train the procurement department personnel on the use of the
procurement system? You must explain why. Options:
Train-the-trainer: train person(s) as subject matter expert(s) (SME) and
utilize that expertise to train others within the organization.
Have the vendor provide training in a classroom environment.
Have the two (2) purchasing department personnel learn the system
during the CRP and couple that learning with on-the-job (OJT) training
when the system goes “live”.
Hire personnel in the open market who are already familiar with how to
operate the procurement system. Have these personnel assume
responsibility for the procurement system and train existing/future
employees.
Part 4. Financial / Cost Implications of purchase vs. lease (10 points):
What is the impact to the company’s expenses over the 7-year period?
Student may consult with other financial accounting subject matter experts, but must
cite their contribution.
(Use the following table provided as a separate document; include it [copy/paste]
in your submission.)
Procurement System Annualized Cost Analysis
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
Last Completed Projects
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