MGMT Boutique Inc. is a high-end retailer that operates a chain of boutiquestores in significant hotel properties along the west coast of SanGre Island, including the famous fivestar Castle Height Hotel. Operating in eleven (11) locations, the company offers chic brands likeRoberto Cavalli, Pain-de-Sucre, Versace, and Etro Milano. It is well known for its eclectic collectionof designer swimwear, fine linens, cotton, and silk apparel for warm days and sultry evenings. A finecomplement of shoes, hats, and handbags with hand-picked custom jewelry is included to embrace thevery essence of luxurious fashion.The locations connect over a MetroE-wide area network (WAN) that FLOW provides. Each store hasa local Point-of-Sale (POS), replicated to a central hub in the main office. Replication occurs onceevery 15 minutes, so the head office is virtually up-to-date, in real-time, and can see, at a glance,transactions in each store.Customers shop duty-free, paying in local Grees (G) or USA dollars. Duty-free sales do not attract a15.0% VAT tax. The list price, seen on the shelf, is the price paid. For customer convenience, thecompany offers a limited range of duty-paid items. Again, customers can pay in either currency, or theprice listed on the self is still the price paid. However, this price now includes 15.0% VAT. Customerspay by cash or card, charge the expense to their room, and settle the bill later.As a reporting requirement for a duty-free establishment, customers' POS details are routinelycaptured. This information has proven helpful for analyzing behavior, and the company also tries tocapture the exact details of duty-paid transactions. As a rule, duty-free transactions will be done in USdollars, while duty-paid transactions will appear in G dollars.MGMT2006 – Management Information Systems I 4 | PageBefore Metro-E, the company did not have a distributed POS, and sales reports from each site weremanually combined in Excel for analysis. Now, the company even allows the purchaser to accessreports and use her softphone when on business trips through VPN connectivity. Metro-E, VPN, andinternet access have changed everything. 1. Defend the use of the MetroE POS and phone Systems from the perspective of yourdepartment and management level. Suggest ONE advantage EACH for the POS and thephone.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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MGMT Boutique Inc. is a high-end retailer that operates a chain of boutique
stores in significant hotel properties along the west coast of SanGre Island, including the famous fivestar Castle Height Hotel. Operating in eleven (11) locations, the company offers chic brands like
Roberto Cavalli, Pain-de-Sucre, Versace, and Etro Milano. It is well known for its eclectic collection
of designer swimwear, fine linens, cotton, and silk apparel for warm days and sultry evenings. A fine
complement of shoes, hats, and handbags with hand-picked custom jewelry is included to embrace the
very essence of luxurious fashion.
The locations connect over a MetroE-wide area network (WAN) that FLOW provides. Each store has
a local Point-of-Sale (POS), replicated to a central hub in the main office. Replication occurs once
every 15 minutes, so the head office is virtually up-to-date, in real-time, and can see, at a glance,
transactions in each store.
Customers shop duty-free, paying in local Grees (G) or USA dollars. Duty-free sales do not attract a
15.0% VAT tax. The list price, seen on the shelf, is the price paid. For customer convenience, the
company offers a limited range of duty-paid items. Again, customers can pay in either currency, or the
price listed on the self is still the price paid. However, this price now includes 15.0% VAT. Customers
pay by cash or card, charge the expense to their room, and settle the bill later.
As a reporting requirement for a duty-free establishment, customers' POS details are routinely
captured. This information has proven helpful for analyzing behavior, and the company also tries to
capture the exact details of duty-paid transactions. As a rule, duty-free transactions will be done in US
dollars, while duty-paid transactions will appear in G dollars.
MGMT2006 – Management Information Systems I 4 | Page
Before Metro-E, the company did not have a distributed POS, and sales reports from each site were
manually combined in Excel for analysis. Now, the company even allows the purchaser to access
reports and use her softphone when on business trips through VPN connectivity. Metro-E, VPN, and
internet access have changed everything. 1. Defend the use of the MetroE POS and phone Systems from the perspective of your
department and management level. Suggest ONE advantage EACH for the POS and the
phone. 

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