Dr Vivien “Viv” Aldi on behalf of the Four Seasons Music business has asked the firm Valkyries Technologies to design a Decision Support System that will be utilized to analyse sales trends for the business to determine future courses of action for the business moving forward. Dr Vivien “Viv” had also asked for the firm to develop an analytical essay detailing and explaining its findings. This report will firstly go over a number of topics explaining what is a Decision Support System, how a Decision Support System is suitable for Dr Vivien “Viv’s Aldi requirements as well as explaining the results generated.
To firstly know how a Decision Support System operates, it helps to have an understanding of how it operates. A Decision Support System …show more content…
Opposed to the Mark-up type Supplier, where the maximum amount of orders that received a discount was 233, compared to Store which a minimum of 346 orders had been discounted.
Furthermore, if Four Seasons Music were to provide a discount to large orders, the impact on the businesses profit margin would be of significant positive growth. As customers purchase more items they would receive further discounts to their orders, which in fact is a form of positive incentivising to the customer and greatly beneficial to Four Seasons Music profit margin.
By analysing the scenarios results on Recommended Freight Type’s, it can be determined that the Guarneri Transport company is the most appropriate freight type for Four Seasons Music due to results showing Guarneri Transport was close to a potential quarter of a million dollars cheaper in expenses when compared to Stradivari Freight’s expenses. The impact to the businesses profit margin based on the selection of the Recommend Freight Type, would be a difference of close to a quarter of a million dollars lost, if Stradivari Freight were used and not Guarneri …show more content…
If the exchange rate of Austria or currently the least lucrative country for exchange in Saint Lucia were to fall below the Australia dollar, this would have serious repercussions to Four Seasons Music operating a profitable business. Another possible issue that could arise, is if the suppliers decided to relinquish Four Seasons Music’s rights of deciding which region it chooses to do business with. This issue would be of most concern if, as mentioned the exchange rate for the country chosen by the supplier had significantly dropped below Australia’s exchange
To firstly know how a Decision Support System operates, it helps to have an understanding of how it operates. A Decision Support System …show more content…
Opposed to the Mark-up type Supplier, where the maximum amount of orders that received a discount was 233, compared to Store which a minimum of 346 orders had been discounted.
Furthermore, if Four Seasons Music were to provide a discount to large orders, the impact on the businesses profit margin would be of significant positive growth. As customers purchase more items they would receive further discounts to their orders, which in fact is a form of positive incentivising to the customer and greatly beneficial to Four Seasons Music profit margin.
By analysing the scenarios results on Recommended Freight Type’s, it can be determined that the Guarneri Transport company is the most appropriate freight type for Four Seasons Music due to results showing Guarneri Transport was close to a potential quarter of a million dollars cheaper in expenses when compared to Stradivari Freight’s expenses. The impact to the businesses profit margin based on the selection of the Recommend Freight Type, would be a difference of close to a quarter of a million dollars lost, if Stradivari Freight were used and not Guarneri …show more content…
If the exchange rate of Austria or currently the least lucrative country for exchange in Saint Lucia were to fall below the Australia dollar, this would have serious repercussions to Four Seasons Music operating a profitable business. Another possible issue that could arise, is if the suppliers decided to relinquish Four Seasons Music’s rights of deciding which region it chooses to do business with. This issue would be of most concern if, as mentioned the exchange rate for the country chosen by the supplier had significantly dropped below Australia’s exchange