Discuss the business impact of this problem. Are today baggage handlingsystems a solution to this problem? Explain.Airlines, with the help of baggage handling systems, are trying to reducecustomer dissatisfaction, along with bags mishandling costs. Lost and mishandled bagsare a huge expense for airlines. Therefore, reducing this issue would generate bigsavings. According to Laudon, mishandling of bags costs $2.5 billion per year to theindustry.With improvements, these numbers are proving to get better. Some major airlinesdecreased lost bags number to 3 of 1000, from previous 9 of 1000 bags. Certaincompanies claim to have saved around $25 million a year after implementation.What kind of management reports can be generated from the data from thesesystems?The reports that can be generated using the data from these systems depend onmanagement and their needs. Some reports such as: travel time of bags from point A topoint B, number of bags processed, reports for decision making (equipment or bags inneed of relocation, etc.), payments, etc.ReferencesLaudon, K.C. & Laudon J. P. (2014). Management of Information Systems (13th ed.)Upper Saddle River, NJ: Pearson Education Inc.
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