From your perspective as an outsider, Club IT seems successful to you. The club is busy in the evenings, the people are eating, drinking, and having fun—the staff is congenial and hard-working. Although, on the financial side, Lisa and Ruben would prefer to see the business earn more profits and possibly open a second Club IT.
Ruben would like to proceed by implementing an inventory system that communicates directly with the supply chain: vendors, distributors, and shippers. Ruben believes that the most difficult part of this project is at the beginning—identifying the requirements of an inventory system that meets the needs of the business.
Lisa is considering a wireless order-taking system, and she has asked you to do a cost analysis of acquiring it. Consider the following information in your analysis:
• The acquisition cost is $35,000 paid at the time of installation.
• It reduces the wait staff by one person: Figure $10 per hour, or 2020 hours per year + 18% benefits.
• Money costs are 7%
• The system may become obsolete in three years.
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