Question 1 COIT20248 - Information Systems Analysis and Development (Term1, 2016) Case Study For Assignment 1 Project Case Study: Natural Best Health Food Stores Natural Health Food store is a chain of health food stores serving NSW, Queensland and Victoria. David Brown opened his first Natural Best Health Food Stores in 1965 and has since opened fifteen stores in three states. Initially he sold only herbal supplements, gourmet coffees and teas, and household products. In 1990, he expanded his product line to include personal care, pet care, and grocery items. In the past several months, many of Mr. David's customers have requested the ability to purchase prepackaged meals, such as chicken, turkey, fish, and vegetables, and have these prepackaged meals automatically delivered to their homes weekly, biweekly, or monthly as requested. With the current system, a customer can become a member of Natural Best Food Delivery Service and have personal care, pet care, gourmet products, and grocery items delivered on a weekly, biweekly, or monthly basis.

Only members can order the items to be delivered at their postal address. The entire subscription process takes almost an hour. The customer needs to fill in the paper form to become member which collects customer's information. To order product member needs to call the shop and a staff member writes the order against the member number. The order will have desired delivery items and quantity, delivery frequency, mode of payment and phone number. This system is old and creates lot of overhead on staff. The order gets misplaced; gets duplicated, insufficient stock or shops are overstocked etc. Mr. David wants to deploy an Automatic Delivery System (ADS) for its existing products. The system should able to process customer's subscription. Once the subscription is processed the customer becomes member and should able to order product online.

As members orders are placed, inventory is automatically updated. Each store should be equipped with a computer that accesses a centralized database. The system should able to track inventory, customers' activity, delivery schedules, and individual store sales. Each week sales summary report should be generated, low-in-stock reports, and delivery schedule reports for each store. The information contained on each of these individual reports is then consolidated into master sales summary, low-in-stock, and forecasting reports. Information contained on these reports would facilitate restocking, product delivery, and forecasting decisions. At present Mr. David uses an Excel worksheet to consolidate sales information from each store. He then uses this worksheet to make forecasting decisions for each store. For Project Cost Benefit Analysis assume discount rate to be 10%. Total development cost is $80,000.00