hello Could I get the answers for Question 5 here's thequestion: QUESTION5 You are the Chief Technology Officer of VegasGirl's Pizza involved as part of the IT overnance team to provideyour opinion and solutions for the following questions Consider thefollowing additional paragraph s and answer the question thatfollows: Back at his desk, Peter Greyton is thinking of the day'sdevelopments. He reflects uporn his meeting with Jim Saxton andElaine Black. He considers where the company has been and where itis heading, and ponders the current issues regarding Vegas Girl'sPizza accounting information systems. Overall, Peter feels that heneeds help aligning Vegas Girl's Pizza business strategy with itsIT systems. In addition, he is concerned about the limitations ofthe current accounting information system. Are internal controlsstrong enough? Would a new, integrated IT system yieldimprovements? As he contemplates the integration of the POS systemsat the restaurant locations with the GL software at the homeoffice, he wonders about the requirements for developing andimplementing such a system, and how to best utilize the system tosupport Vegas Girl's Pizza business strategy. Peter realizes thathis ability to address these issues will be critical not only tothe success of the company, but also to his career. He askshimself, "What should I do now?" Required: Assume that you are JimSaxton preparing a report for Peter Greyton, the CIO. Address thefollowing: Do you think Vegas Girl's Pizza business strategy isdriving the development of its information systems, or vice versa?Use points from the case to support your answer 2. Describe thesteps Vegas Girl's Pizza should take (according to the systemsdevelopment life cycle stages) to ensure that its IT systems arealigned with its business strategy Consider the following issuesthat relate to Vegas Girl's Pizza purchases of ingredients andsupplies, and then answer the questions pertaining to itsexpenditure processes. As mentioned in the opening part of theVegas Girl's Pizza case, there are now 49 locations throughout thegreater Pittsburgh area. Each one of those restaurant locationsneeds an ongoing supply of the many ingredients of pizzas and theother foods served. The raw materials each restaurant needs to makeand sell pizzas and other menu items are things such as flour,salt, sugar, tomatoes, potatoes, lettuce, tomato paste, spices,meat, cheeses, and buns, as well as supplies such as napkins,take-out packages and doggy-bag containers Each restaurant mustmaintain an inventory of all of these items in order to properlyserve customers. However, it is a difficult balance to maintain theright amount of each of these items. As you know from yourexperience in eating at restaurants, t can leave a negativimpression in your mind if the restaurant has run out of the foodyou intended to order Thus, there must always be enough ingredientsand supplies to meet customers' desires Two factors make itdifficult to maintain enough inventory of food can supplies:predicting demand, and time or space limitations. First, t can bedifficult to predict customer demand for any particular day orweek. The less predictable the stream of customers eating at therestaurant, the harder it can be to know how much inventory of foodand supplies to keep. Secondly, time and space limit the amount ofinventory a restaurant can keep. Food inventory is perishable, andmuch of it has a very short shelf life. For example, lettuce andtomatoes may remain fresh for only a couple of days. Other fooditems, such as flour and salt, may remain usable for months. Buteven for items with a long shelf life, it is hard to keep a largeinventory at a restaurant because of limited storage space. Most ofthe space in a restaurant is for customer dining and the kitchen.Vegas Girl's Pizza uses a central commissary to prepare some of theingredients before they are shipped to the restaurant. For example,the individual restaurant locations do not make dough on thepremises. The flour, salt, yeast, and other ingredients aremaintained, mixed, and prepared at the commissary, and this premadedough is then shipped by truck to restaurants daily. The pizzasauce and many ingredients for sandwiches and salads are alsopremade at the commissary. All of these factors taken together meanthat Vegas Girl's Pizza must continually be purchasing theingredients for pizzas and other foods, and supplies. Theseinventory items must be delivered to the commissary and then toeach of the 49 Vegas Girl's Pizza locations to ensure that theynever run out of the items needed to serve customers. Since thereis a short shelf life for much of the inventory, the purchasingtakes place on a daily basis to keep the commissary and eachrestaurant location properly stocked. Required: 3. Describe how youbelieve an efficient and effective purchasing system should beorganized at Vegas Girl's Pizza. Consider details such as thefollowing: a) How many purchasing agents should be employed? b)Where will these purchasing agents be located? c) How will thenecessary information for purchasing flow between restaurants andthese purchasing agents? How will IT systems be used in purchasing?How and when will purchased items be delivered to the restaurants?(Remember that all 49 locations are within the Pittsburgh area andnone would d) e) be more than a one-hour drive from the corporateHeadquarters.) 4. Draw a process map of your proposed purchasingsystem. 5. Describe any IT controls that would be necessary ordesirable in your purchasing system 6. Briefly describe VegasGirl's Pizza conversion processes; that is, what gets converted,how is it done, and where are the underlying processes performed[at which Vegas Girl's Pizza location(s)]? 7. What procedures andinternal controls would you recommend to Vegas Girl's Pizza tominimize the risk of lost sales due to stock-outs (i.e., runningout of ingredients) and the resulting idle time that may beincurred while employees are awaiting delivery from thecommissa|
IT IS A FOLLOWUP QUESTION
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