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