Question: TPS Needed to Support Small Business

Cal is setting up a small business to prep, cook, and deliver healthy and nutritionally balanced meals to customers in his local area. Cal meets with prospective customers to acquaint them with the program, discuss their eating habits and nutritional needs, and help them select from one of several menus (vegetarian, gluten free, low carb but high protein) that meets their needs. Twice a week Cal and his workers buy food ingredients based on what has been ordered. They then cook three or four days of meals for each customer and seal them in airtight bags for reheating. Deliveries are made twice a week. All the customer has to do is take the bag from the refrigerator and pop it into the microwave for 60 seconds. Business has really taken off and Cal has had to hire two part-time cooks and two part-time delivery people. Cal has been so busy lining up new customers, shopping, and cooking that he has not had time to carefully track all his expenses. He pays his workers in cash, but realizes he will need to set up a formal payroll system and start deducting for taxes, social security, and Medicaid. Cal also wishes he had some sort of system that could help him better plan the kinds and amounts of ingredients needed based on customer orders. As it is, he usually purchases too much of the various ingredients and ends up giving leftovers away at the free store.

Review Questions

1. What kind of transaction processing systems does Cal need to manage and support the basic functions of his business?

2. Identify six specific tasks that the TPS must perform to meet his needs.

Critical Thinking Questions

1. Should Cal consider developing his own programs using spreadsheet and database software or should he purchase an integrated package to meet his needs?

2. Business is going so well that Cal is thinking of expanding the scope of his business to include catering for weddings, parties, and various business functions. As the scope of his business expands, how might this impact the choice of transaction processing systems?