MIS

Purchasing managers obtain information from other internal functional area and
integrate this with that from the external environment (e.g. Suppliers and
competitors) to create a purchasing information system
Information requirements at different levels.

Strategic
Information
Tactical
Information
Operational
Information

At all operational level information is provided through a transaction processing and

reporting system (TPS) that process transactions as they occur to update internal
records and provide documents and reports therefore information on this level will
be scheduled internal detailed, frequent, largely historic and narrowly focused.
At the tactical level, middle level managers receive information collected from
transaction processing systems or operational staff and also from internal and
external sources (both detailed and summarized). This information will be utilized
for planning and control activities and, where appropriate, transmitted in
summarized form to top management to support strategic planning.
At the strategic level information from internal and external sources is required to
enable top management to appraise organizational strengths, weaknesses,
opportunities and threats. Information at this level will be unscheduled,
summarized, infrequent, forward looking and wide ranging.
The function of MIS is to assist decision making. At all operational level, information
in association with policies, procedures and rules is usually applied to programmed
or routine decision making. Operational decisions are made by lower level manager.
Operational decisions involve the day-to-day decisions needed in the operation of

the organization. They affect the organization for a short period of time, such as
several days or weeks.
The tactical level highlights decision support (DSS) and group decision support
(GDSS). The former enables the middle level manager to make non-programmed,
non-routine, tactical decisions related to short duration (several months or a few
years) to accomplish limited goals. At the strategic level information is used to
make non-programmed, non-routine, strategic decisions related to adaptations
towards longer term, more broadly conceived ends. The decisions affect the
organization for many years.

Types of Information System

Slide 18-23.
Knowledge Management system 24, 26-31.

Input
Data for processing will first be collected from a source document, e.g. A purchase
requisition or goods received note. Source data will need to be recorded on a
suitable medium and fed into the computer via an input device (Keyboard).

Storage
The main store holds the program instructions and data being processed as well as
processed data (information) awaiting transfer to output devices.
The external store: magnetic disk storage.
Files: Master files (stock files and purchasing order master files), Transaction files
Processing

Output
The results of the data processing operation are assembled in the main store in
readiness for output to a visual display unit, line printer or other output device.

Essential features
The generation of purchasing orders, continuous monitoring of stock and recording
of issues are all dependent on the level of business activity in an organization.

Expert Systems
These are computer programs that provide for solving problems in a particular area
by drawing inferences from a knowledge base acquired by human expertise. With

an expert system the user sits at a terminal and answer questions posed by the
computer which eventually reaches a diagnostic or decision and informs the user
how that decision has been reached.
Expert systems are used to improve the effectiveness and efficiency of purchasing
management decisions and instances the following:

Supplier evaluation and selection,

Material price forecast, and
The purchase of major capital assets

In the latter case the expert system would consider a wide range of factors
including but not limited to the;

Final cost
Method of financing purchase
Installation process
Effects on labour and workplace
Impact on quality of products
Fit with existing technology
Training required for operation

Decision Support Systems

These systems are designed to enable an individual (DSS) or a group (GDSS) to
make a decision by summarising all, relevant available information whether held in
the organisations database or externally.
One form of GDSS allows participants in decision making to be in different locations.
This can significantly reduce management travelling costs. Decision support
systems are particularly applicable to purchasing and supplies problems relating to
the analysis of risk and the outcomes of varying scenarios.