***************ONLY COMPLETE PART B********** (Part A is the letter which is page one) (The memo is a response to the letter offering Recommendations)

Dear Mr. King: Furniture Software has the perfect system for your furniture store - FLAIR (Furniture Location and Information Retrieval). By providing timely and accurate information, FLAIR enables you to better track the physical system using conceptual resources. FLAIR's benefits are numerous. As furniture (input) is unloaded at the warehouse, based on the packing slip, data is collected concerning such items as quantities and model numbers. FLAIR keeps track of where a piece of furniture is in the transformation process. The database records whether furniture is in storage, on the display floor or in route to be delivered. Furniture is not considered output until delivered to the customer's home and the salesperson has verified that the customer is indeed satisfied. FLAIR will serve as the information processor in your closed-loop system. Based on the data gathered from the physical system, you will be able to utilize information provided by FLAIR to make decisions concerning such important issues as: 1. How long does it take a furniture manufacturer to deliver your order once it is placed? 2. How long is furniture being stored in your warehouse? 3. What furniture is selling best? Overall, FLAIR increases the effectiveness of your existing feedback loop. By providing managers (the control mechanism) exception reports and the ability to query the database, FLAIR provides information useful in problem identification and solution. As you'll see, FLAIR is very user friendly and facilitates both management by exception and tracking of critical success factors. Even with a full-time operator, FLAIR is a cost-effective alternative to your existing system. Since FLAIR is designed specifically for furniture stores, less training is involved. In addition, training courses are available at very reasonable prices. I have enclosed a demonstration CD and a brochure describing FLAIR. Furthermore, I will contact you next Friday concerning arrangements for a free, on-site, in-depth demonstration. Sincerely, system for use by furniture stores. The system, called FLAIR (Furniture Location And Information Retrieval), consists of both hardware and software. One day, while talking with Alton Fox, the sales manager for Classic Furniture, you learn that he has an inventory problem. Classic has never seen fit to acquire a computer and uses a manual bookkeeping system. A local college student, Alisa Stack, works each weekday afternoon and updates the inventory records from the written copies of the sales slips and receiving reports. Fox says that the inventory records are practically useless since they do not accurately reflect the inventory status - the types and quantities of furniture items in the warehouse. For example, a customer comes in and wants to buy a certain style of coffee table. According to the inventory records, there is one in stock, but when the warehouse clerk goes to get it, it is not there. Most likely, when it was sold, someone failed to fill out a sales slip, the slip became lost, or Alisa failed to post the transaction properly. Other errors also occur when new stock arrives from the furniture manufacturers. Alisa only updates the records with the receipts on Wednesdays - when she has the least number of sales to handle. A salesperson might have a customer who wants a particular furniture item, and perhaps the item has just been received and is in the warehouse, but the salesperson will never know it. A sale is lost because of poor information. Once a store gets FLAIR, and the computer records are updated when a shipment arrives or a sale is made, the information system should accurately reflect what is in inventory. This capability can be achieved at a very reasonable cost ( $22,000 for hardware and software). The overall cost, including a full-time operator, is well within the reach of even small furniture stores. Fox tells you that the person who makes all decisions concerning inventory tracking is Phil King, Vice President of Finance. You call on Phil and begin your sales pitch. He interrupts you and says: "Hey, hold the phone. I'm new on the job. I just received my MBA last month, with a major in systems theory. If you could just explain how your product will help us, in systems terms, I think I can understand. Better yet, why don't you put it in a letter. I can look it over and then we can talk." Part A Assume you are the salesperson and prepare the business letter that Phil King requests. Keep in mind that he is familiar with taking a systems view of his operations. Thus, explain how FLAIR can help correct this situation in systems terms. Currently, the conceptual system does not match the physical system. Your letter should clearly state the system components (i.e., input, transformation, output, control mechanism, objectives and feedback). The system that Phil is referring to is the furniture store in general - not FLAIR. Keep in mind, your job is to sell Phil on FLAIR by explaining how FLAIR enhances the system. Part B Assume you are Phil King. Bob Moore, President of Classic Furniture, wishes to be updated on the inventory tracking situation. Having just received the letter from the FLAIR sales representative, you must prepare a memo to Mr. Moore detailing your recommendation(s)