Julberg, Inc. produced computer output microfilm (COM) devices. Julberg was the market leader, with sales of $150 million per year. Its processor product line included ten different models ranging in...

Julberg, Inc. produced computer output microfilm (COM) devices. Julberg was the market leader, with sales of $150 million per year. Its processor product line included ten different models ranging in price from $75,000 to $500,000. Julberg’s supply management department was in charge of supplying approximately 20,000 different parts required to manufacture the company's processors. The buyers' levels of education and experience ranged from two to thirty years. Several of the senior buyers had risen through the ranks from manufacturing, receiving, and inventory control. Julberg is a Danish industrial equipment manufacturer. The company has been developing a new system to improve the efficiency of its supplier selection and price analysis. Julberg will be able to rely on the buyer's memory instead of his or her own. The majority of purchases were made in accordance with Julberg design specifications. According to the supply manager, the current procedures were causing material costs to be approximately 10% higher than they should have been. He stated that it was time to seek out and negotiate the alternative suppliers. Julberg’s parent company decided to purchase and implement an on-li e microprocessing system for all of its subsidiaries' materials functions. According to Julberg, the data processing and storage system would aid management in decision making. Routine, repetitive tasks would be automated by the system. The data base would serve as the foundation for creating a new data file. The price and status of all purchases, as well as information resulting from the receipt, inspection, and issuance of offered material, would be included in the data. The database would then be instantly available to anyone who needed it. Julberg’s parents company purchased a new computer system feom the Chicago-besed EZ Computer company. According to the company, the new system will reduce materi coats by at least 10%. Julberg has since implemented the new system in its stores and distribution centers throughout the United States. A supply management team was concerned about the impact of a computerized purchasing system. One employee resigned because he "never trusted the information the computer gave me". It is currently in the process of implementing a new, more secure system. The Department of Labor is utilizing a new computer-based supply management system. According to the company, it will free buyers from routine clerical tasks, allowing them to go out and meet with suppliers. He aslo claims that it has the potential to reduce prices by 10%. When the computer told buyers not to buy from supplier, the supply manager was caught off guard. " I don't want to have to call a supplier i've worked with for years and him, 'Sorry, my computer says i can't buy from you anymore.' The chief of inspection, Robert Hanson, says his staff is "unenthusiastic" about a new computer system. "My people are afraid of becoming slaves to a machine, "Mr. Hanson says. The new system will be in place in three weeks. 1. How does the use of a computer-based operating system mitigate or eliminate these flaws? Plan ahead of time.