TYPES OF INFORMATION SYSTEM

Information systems differ in their business needs and the information varies depending upon different levels in organization. information system can be broadly categorized into following :

Transaction processing system
Management Information System
Decision support system

The information needs are different at different organizational levels. Accordingly the information can be categorized into following:

Strategic information
Managerial information
Operational information.

Transaction Processing Systems

It processes business transaction of the organization. Transaction can be any activity of the organization. For example, take a railway reservation system. Booking, canceling, etc are all transactions. Any query made to it is a transaction.
This provides high speed and accurate processing of record keeping of basic operational processes and include calculation, storage and retrieval.
Transaction processing systems provide speed and accuracy, and can be programmed to follow routines functions of the organization.

Management Information Systems

It assist lower management in problem solving and making decisions. They use the results of transaction processing and some other information also.
An important element of MIS is database.A database is a non-redundant collection of interrelated data items that can be processed through application programs and available to many users.

Decision Support Systems

These systems assist higher management to make long term decisions. These type of systems handle unstructured or semi structured decisions. A decision is considered unstructured if there are no clear procedures for making the decision and if not all the factors to be considered in the decision can be readily identified in advance.
A decision support system must very flexible.
The user should be able to produce customized reports by giving particular data and format specific to particular situations.

Advantages and Disadvantages of EIS Advantages of EIS Easy for upper-level executives to use, extensive computer experience is not required in operations Provides timely delivery of company summary information Information that is provided is better understood Filters data for management Improves to tracking information Offers efficiency to decision makers Disadvantages of EIS System dependent Limited functionality, by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow, large, and hard to manage Need good internal processes for data management May lead to less reliable and less secure data

Inter-Organizational Value Chain

The value chain of a company is part of over all value chain. The over all competitive advantage of an organization is not just dependent on the quality and efficiency of the company and quality of products but also upon the that of its suppliers and wholesalers and retailers it may use. The analysis of overall supply chain is called the value system. Different parts of the value chain 1. Supplier 2. Firm 3. Channel 4 . Buyer

Big-M Method and Two-Phase Method

Big-M Method The Big-M method of handling instances with artificial variables is the “commonsense approach”. Essentially, the notion is to make the artificial variables, through their coefficients in the objective function, so costly or unprofitable that any feasible solution to the real problem would be preferred, unless the original instance possessed no feasible solutions at all. But this means that we need to assign, in the objective function, coefficients to the artificial variables that are either very small (maximization problem) or very large (minimization problem); whatever this value,let us call it Big M . In fact, this notion is an old trick in optimization in general; we simply associate a penalty value with variables that we do not want to be part of an ultimate solution(unless such an outcome is unavoidable). Indeed, the penalty is so costly that unless any of the respective variables' inclusion is warranted algorithmically, such variables will never be p

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