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 jewellery are included to embrace  the very essence of luxurious fashion.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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 jewellery are 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, POS details for customers are routinely 
captured. This information has proven helpful for analysing behaviour, 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 VPN connectivity for the 
purchaser, when on business trips, to access reports and use her softphone. The Metro-E, VPN and 
internet access have changed everything.DESIGN and DRAW a high-level “as-is” process diagram depicting how the company could 
have complied a combined sales report BEFORE the Metro-E system was introduced (i.e. before 
no connectivity existed among the sites

CLERK
CUSTOMER
Go to
bookstore
Search
Shelves
Book
Available?
Yes
Purchase
Book
Take Book
Home
Go to
another
Yes
No
Clerk
searches
store
No
Ask about
Found? No ordering
book
Able
to order?
Yes
Place and
Receive
order
Return to
store
Notify
Customer
Transcribed Image Text:CLERK CUSTOMER Go to bookstore Search Shelves Book Available? Yes Purchase Book Take Book Home Go to another Yes No Clerk searches store No Ask about Found? No ordering book Able to order? Yes Place and Receive order Return to store Notify Customer
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