Description of FastFit’s Operations

FastFit Sporting Goods is a successful New England regional supplier of sporting goods to the high end consumer

market. They sell an exclusive selection of equipment and apparel to men and women who exercise and pursue outdoor

activities on a regular basis. They operate five (5) upscale retail stores in the New England market that offer a high level

of customer attention, with a headquarters (HQ) is in Burlington, Massachusetts, and a single warehouse, distribution,

and eCommerce fulfillment center in Haverhill, Massachusetts. Most of their products are purchased from two suppliers,

Winter Gear Distributers outside of Providence, Rhode Island, and Boston Fitness Supplies in Marlboro, Massachusetts.

FastFit has expanded successfully in the New England area over the past five years. However to expand nationally as a

major retailer, they need to improve the scalability of their operations (stores and warehouses). A key part of their

strategy is to leverage information systems to automate and improve operations, to strengthen management controls,

and to enable significant growth while maintaining the “high touch” customer experience. A diagram of their complete

non-Web based operations follows. See figure 1.

General Question

1. Mark the main flows of goods and money in a system diagram and use a chronological flow list to

detail/explain the steps of the business process. Draw your own system diagram.

Chronological flow of activities (Business Process):

1.   Customer delivers money to the store’s cash register in exchange for goods from the store
2.   Flow of money from store to HQ
3.   Flow of money from HQ to the Supplier with the with the product detail
4.   Confirmation of good order
5.   Good shipment to the warehouse
6.   Good shipment to the store
7.   Good purchased by customer

2. a) List the specific items of information that are usually gathered at the POS (Point of Sale terminal or cash

Q3)?
b) What are three important uses of this information at the store by the store manager and three important uses of this

information by management at the headquarters– a total of six uses? (use a table). It is important that you give

different responses/business uses for store manager and the HQ.

Product Information
– Product’s price
– Product’s Barcode
– Quantity
– Price
– Size
– Category

Transactional Information
– Cashier’s ID
– Cashier’s name
– Date of the transaction
– Time of the transaction

Uses of Information elements by Store Manager:
Description of the use Type of Business Use
Tracking the top selling items: Managers can track top selling items and make more orders for those specific items.

Candidates promotion: Keep track of how many products each employee sold, at a certain quantity sold, employee will

earn bonus. – Transactional

– Tactical

Uses of Information elements by Headquarters:
Description of the use Type of Business Use
Advertisements: HQ is in charge of marketing, and it is their mission to advertise their products as well as they can.
Ordering from supplier: When the HQ receives the information regarding stock level, the HQ then can order new goods

from the supplier. – Strategic

– Tactical

3. a) What are some ways to obtain the identity of the customer at the POS and to associate this “identity” with

more detailed information about the customer (include at least two ways)? b) What business actions could Fastfit then

take based upon this additional information?

Obtaining Customer Identity Associate this “identity” with more detailed information Actions Taken Based on

Information
Describe here how one would obtain identity of the customer. Subheading: Describe here how one would

associate customer identity with specific business transactions occurring in the retail organization. Describe how the

retail firm could use the combined identity and business transaction to get better or higher results.
Describe here how one would obtain identity of the customer. Subheading: Describe here how one would

associate customer identity with specific business transactions occurring in the retail organization. Describe how the

retail firm could use the combined identity and business transaction to get better or higher results.

A.   Please describe a minimum of TWO ways of obtaining identifying customer info.
B.   Use the table structure provided.
C.   Identify the specific activity to collect customer data in first column of the table. Use the next column to

present arguments about the linking customer information to more information about them. Use the last column to

describe how the linked information could be used for business actions, i.e. to serve customers better.
D. Describe a minimum of TWO business actions. Include at least one for each activity that enables the gathering

customer information that you listed)
E. Do not repeat same business actions over and over again.
F. Do not focus on simplistic business uses, e.g. we can use information to send information to customer, think

about how a store manager/HQ management could use the information in a sophisticated manner for decision-making,

planning, etc.

4. Assume HQ is responsible (HQ issues orders to suppliers and determines what warehouse should deliver to

stores) for replenishing inventory at the stores. a) What information (elements) are needed and how are these used to

decide what (the warehouse) sends to each store? b) Where do the information elements come from?
c) List two reasons why we didn’t have each store decide what (replenishments) to order from the warehouse?

a) List information categories and information elements first:

(b)

Uses of Information:
Questions related to use (Provider of information) Type of Business Use
Which is one of the questions that need to be answered in replenishing inventory to stores? (Identify the department or

agent that will supply the information)? – – Type of business use
Which is one of the questions that need to be answered in replenishing inventory to stores? (Identify the department or

agent that will supply the information)? – – Type of business use

c) Subheading: Arguments

Clarification: When a store runs low on inventory it needs to order new products. This is called inventory replenishment.

The scenario in the question assumes that the HQ has access to information about inventory levels. HQ uses this

information to decide how much it orders from suppliers. HQ also instructs the warehouse how to distribute the goods

to the stores.

A. You want to list a minimum of TWO information elements per information category
B. The question “where the information comes from” requires you to identify the business entity (source) that

would provide the information, e.g. supplier, store, etc.
C. Tip: Imagine that you are the HQ manager who has to make the decision. Which information elements would

you need and how would you use them.
D. In answering 4 c), one way of making a strong argument is to imagine different things that could go wrong if

each store determined its replenishment plan on its own.

Supplier Questions (focus on FastFit and Supplier boxes)

5. a) Draw a system diagram that shows the key information and product flows between FastFit (HQ and

Warehouse) and a supplier, including the steps for ordering and invoicing and label each flow descriptively. This

diagram will have three circles.

A. You do not need to use the diagram elements and arrow that are provided. Feel free to create your own neat diagram

from scratch. Use a software program, e.g. Microsoft Word program or Visio software for the diagram. Do NOT use pen

and/or pencil to create diagrams.
B. The system diagram should include arrows that show the direction of each flow for each business activity. Avoid

double-edged arrows.
C. Avoid the use of the same number on different arrows. Do not use alphabets of colors to differentiate the flow, rather

use numeric values. Each arrow must be labeled.
D. Use the numbers on the arrows to indicate the sequence and chronological order of flows. Do not write the text of

flows on each arrow.
E. In a special section below your system diagram, include a chronological flow of activities. The list would describe

what the numbers on the arrows mean, i.e. it should describe the business process.
F. Make sure that you show that you understand the difference between ordering and invoicing activity.

6. Assume that FastFit headquarters receives and pays invoices from suppliers. a) How do they decide whether

(i.e. which information elements does the HQ use) to pay and how much to pay? b) From where do they get the

information to make this decision?

(a )
Analysis to be done by the HQ   Information Elements Needed   Source of Information
Describe here a specific evaluation that has to be done by a staff of the HQ.   Information Category 1
–   Info element

Information Category 2
– Info element Which departments or entity would provide the information elements

Decision: Describe how the information elements are used to conduct the analyses/evaluation.
Describe here a specific evaluation that has to be done by a staff of the HQ.

Fastfit HQ needs to pay for the replenishment that it ordered for. The scenario in this question assumes that the HQ has

access to relevant information. HQ uses this information to decide whether to pay and how much to pay suppliers.

A. You want to list a minimum of two information elements per category.
B. The phrase “source of information” requires that you identify the entity that provides the information

element, e.g. store, etc.
C. Make sure that you have sufficient information that is related to each question Tip: Imagine that you are the

HQ manager who has to make the decision. Which information elements would you need and how would you use them.

a) Identify the information categories and information elements first:

Criteria to be used Source of Information/Decision
-Issue subheading: Describe an issue that is relevant for the decision to be made? Identify dept or entity that

will provide the information

Decision: Describe how manager will use criteria to make decision
-Issue subheading: Describe an issue that is relevant for the decision to be made? Identify dept or entity that

will provide the information

Decision: Describe how manager will use criteria to make decision

NB: The following questions are due later in the semester

Web/E-Commerce Questions (assume customers order on the Web)

7. a) Assuming that Fastfit goes ahead with its plans to have an e-commerce site, identify two physical

locations, from where customers can enter their orders to the ecommerce site and b) For each of the locations that you

mentioned, identify the technologies (cover the areas of software, hardware and networks) that a customer would need

(at the location) to accomplish this activity? (use a table).

Technologies for Home Location:

Category
Software 1. Name of component: Describe here what this component does within the e-commerce environment.

Hardware 1. Name of component: Describe here what this component does within the e-commerce environment.
2. Name of component: Describe here what this component does within the e-commerce environment.

A. Note that the focus of 7 a) is not on technology, but on places from where customers could use the web to

order things, e.g. home etc.
B. For part 7 b), the idea is to show that you know the key technology components that are needed by a

customer from each of the physical locations that you listed in 7 a)
C. You need to list a minimum of TWO components for each category. Use a table to present your responses. Set

the table up, such that the relationship between each component and its category is clear.
D. Briefly describe within the table, what each listed technology component does.

8. a) What technology components (cover the categories of software, hardware and networks) do we need at

FastFit to interact with our customers on the web? (use a table) b) At what location within FastFit would you place these

technology components and why? (use a table).

Category   Name of Component   Location of component
Software   1.   Name of component: Describe here what this component does within the e-commerce environment.
2.   Name of component: Describe here what this component does within the e-commerce environment.
Location: XXX.

1. Justification: Describe why the component would be placed at the location that you suggested.

Hardware 1. Name of component: Describe here what this component does within the e-commerce environment.
2. Location: XXX.

2. Justification: Describe why the component would be placed at the location that you suggested.

A. Note that the focus of Q8 is on technologies that FastFit needs to operate its e-business.
B. For Q 8 a), the idea is for you to show that you know the key technology components that are needed by

FastFit in order for it to receive and process tens of thousands of orders for customers using the web.
C. You should list a minimum of TWO components for each category. Use a table for your responses. Set the

table up, such that the relationship between components listed and the category it belongs to is clear to a reader.
D. Briefly describe in the table what each technology component does.
E. For part 8 b), you need to decide which part of Fastfit (Store; HQ or Fulfillment Center) you would place the

listed technology components.
F. Make sure that you have a minimum of ONE argument for the placement decisions made (in Store, HQ or

Fulfillment Center). The argument should argue why you placed the technology components in the place you did and not

in one of the other two places.

9. a) What does the order fulfillment center do? b) Why is it located at the warehouse? c) List what information

is needed at the warehouse to provide fulfillment services. d) What information is created or changed during the course

of the eCommerce business process? (Use a table to describe the business process ( c ) and the information ( d ) that are

changed ).

(b & c combined in single table)

Business Actions Information Created Information Changed
Business activity • Information category type (info. elements 1, info. elements 2) •

Information category type (info. elements 1, info. elements 2)
Business activity • Information category type (info. elements 1, info. elements 2) •

Information category type (info. elements 1, info. elements 2)

A. Note that the focus of 9 a) is on different activities that this center does.
B. For 9 a), describe a minimum of THREE different activities of the fulfillment center. Cover wide scope of

activities not merely different aspects of customer support.
C. For 9 b), provide a minimum of TWO arguments why placing a fulfillment center in the warehouse makes

sense.
D. In response to 9 c), you need to cover at least THREE of the fulfillment activities that you listed in 9 a). Use a

table. Set the table up, such that the relationship between each information element and the fulfillment activities is clear.
E. For 9 c), include a minimum of TWO information elements per fulfillment activity.
F. For part 9 d), imagine different scenarios, e.g. what information changes occur when a a new customer buys an

item from Fastfit’s web site.
G. For part 9 d), use a table. In the first column identify the business process actions, e.g. customer creates an

account or customer places and order. In the second column identify created information. In the third column, identify

changed information.

10. a) Why would we want to take customer returns at the stores? Where else within FastFit might we process

customer returns, and why? b) List what information needs to be shared with what locations to support returns in both

of these scenarios (use a table).

A.   Provide a minimum of TWO different arguments why, we would want returns done at a store.
B.   Identify a different location where returns could be taken/done.
C.   Provide a minimum of TWO different arguments about why, one would want to process returns at the new

location instead of at the store.
D. Use a table for 10 b). Use different rows of a table for each of the returns scenarios. List the scenarios in the

first column. Use the second column to describe information that a participant in the process shares with returns

location, e.g. stores. Use a third column and fourth if needed to identify sources of information that is needed by

returns location.

11. What are some advantages and disadvantages of taking the FastFit business unto the web? (use a table).

A.   Include at least three different advantages and three different disadvantages.
B.   Do not repeat yourself.
C.   No cell in table should be empty

Criteria Advantages Disadvantages
Identify a criterion 1 Describe an advantage related to the criteria 1 using at least a complete sentence.

Describe a disadvantage related to the criteria 1 using at least a complete sentence.
Identify a criterion 2 Describe an advantage related to the criteria 2 using at least a complete sentence.

Describe a disadvantage related to the criteria 2 using at least a complete sentence.

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