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What is MIS? Define the characteristics of MIS? What are the basic Functions of MIS? Give some
Disadvantage of MIS?
Organized approach to the study of information needs of a management at every level
in making operational, tactical, and strategic decisions. Its objective is to design and
implement man-machine procedures, processes, and routines that provide suitably
detailed reports in an accurate, consistent, and timely manner. Modern, computerized
systems continuously gather relevant data, both from inside and outside the
organization. This data is then processed, integrated, and stored in a centralized
database (or data warehouse) where it is constantly updated and made available to all
who have the authority to access it, in a form that suits their purpose.
Characteristics of MIS:
MIS is mainly designed to take care of the needs of the managers in the organization.
MIS aids in integrating the information generated by various departments of the
organization.
MIS helps in identifying a proper mechanism of storage of data.
MIS also helps in establishing mechanism to eliminate redundancies in data.MIS as a system can be broken down into sub systems.
The role and significance of MIS in business and its classification is explained. It is
possible to understand the various phases of development in MIS based on the type of
system required in any organization.
Functions of MIS
1. Data processing
It includes the collection, transmission, storage, processing and output of data. It
simplifies the statistics and reduces to the lowest cost by supplying an unified format.
2. Function of prediction
It predicts the future situation by applying modern mathematics, statistics orsimulation.
3. Function of plan
It arranges reasonably the plans of each functional department in accordance with therestrictions afforded by enterprises and provides the appropriate planning reports
according to different management.
4. Function of control
It monitors and inspects the operation of plans and comprises with the differences
between operation and plan in accordance with the data afforded by every functional
department, and be assistant to managers to control timely each method by analyzing
the reasons why the differences comes into being.
5. Function of assistanceIt derives instantly the best answers of related problems by applying to various of
mathematics’ mode and analyzing a plentiful data stored in computers in the hope of
using rationally human resource, financial resource, material resource and information
resource for relative abundant economic benefits.
Disadvantages of MIS
1.highly senstive requires constant monitoring.
2.buddgeting of MIS extremely difficult.
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3.Quality of outputs governed by quality of inputs.
4.lack of flexiblity to update itself.
5.effectiveness decreases due to frequent changes in top management
6.takes into account only qualitative factors and ignores non-qualitative factors like
morale of worker, attitude of worker etc..
by divyapizzacom
2. Explain Knowledge based system? Explain DSS and OLAP with example?
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MB0047-
Management
Information
System
Q1. What is MIS?
Define thecharacteristics of
MIS? What are
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the basic
Functionsof MIS?
Give some
Disadvantage of MIS?Answer:-
MIS systems areextensively used
in generating
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statistical report
of any
organizationwhic
h can be used to
study
management bybehavior. They
set objectives to
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their employees
using ratio
analysis.
Management also
uses MIS for
decision makingfrom thelow
level
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management to
top level
management. In
order to perform
task
usingInformationsystems use of
technical support
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is required. So it
is the
combination of
3components i.e.
organization,
technology andmanagement.
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MIS
characteristics•
It supportstransaction
handling andrecord keeping.•
It is also called asintegrated
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database
Management
System which
supports inmajor
functional areas.•
It provides
operational,tactical, and
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strategic level
managers with
east access
totimely but, for
the most,
structuredinformation.•
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It supports
decision – making
function which is
a vital role of
MIS.•
It is flexible
which is neededto adapt to the
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changing needs of
the organization.•
It promotessecurity system
by providing onlyaccess to
authorized users.•
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MIS not only
provides
statistical and
data analysis but
also works on the
basis onMBO(management by
objectives). MIS
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is successfully
used for
measuring perfo
rmance and
making
necessarychange in the
organizational
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plans
and procedures. It
helps to build
relevant and
measurable
objectives,monitor results,
andsend alerts.
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Basic Function of
MIS
The main
functions of MISare:•
Data Processing:
Gathering,
storage,
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transmission,
processing and
getting outputof
the data. Making
the data into
information is amajor task.•
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Prediction:
Prediction is
based on the
historical data by
applying the
prior knowledgemethodology by
using modern
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mathematics,
statistics or
simulation.
Prior knowledge
varies on the
application andwith different
departments.•
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Planning:
Planning reports
are produced
based on the
enterprise
restriction onthecompanies and
helps in planning
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each functional
department to
work reasonably.•
Control: MIS
helps inmonitoring the
operations andinspects the plans.
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It consistsof
differences
between operation
and plan with
respect to data
belonging todifferentfunctiona
l department. It
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controls the
timely action of
the plans and
analyzes
thereasons for the
differencesbetween the
operations and
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plan. Thereby
helps managersto
accomplish their
decision making
task successfully.-
1 – MB0047-
Management
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Information
System•
Assistance: Itstores the related
problems andfrequently used
informationtoapply them for
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relative economic
benefits. Through
this it can derive
instant answersof
the related
problem.Disadvantages of
MIS
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The following are
some of the
disadvantages of
MIS:•
MIS is highlysensitive: MIS is
very helpful inmaintaining
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logging
information of an
authorized user.
This needs to
monitor
constantly.•
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Quality of outputs
is governed by
quality of inputs.•
MIS budgeting:
There isdifficulty in
maintainingindirect cost and
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overheads.Captur
ing the actual cost
needs to have an
accrual system
having true costs
of outputswhichis extremely
difficult. It has
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been difficult to
establish definite
findings.•
MIS is not
flexible to updateitself for the
changes.•
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The changes in
the decision of
top level
management
decrease its
effectiveness.•
Informationaccountability is
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based on the
qualitative factors
and the factors
likemorality,
confidence or
attitude will nothave any base.
-2-
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2. Explain
Knowledge based
system?
Explain DSS and
OLAP withexample?Answer:
Knowledge BasedSystem (KBS)
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KBS are the
systems based
on knowledge
base.
Knowledge base
is thedatabasemaintain
ed for knowledge
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management
which provides
the means of data
collections,organ
ization and
retrieval of knowledge. The
knowledge
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management
manages
thedomain
where it creates
and enables
organization foradoption of
insights
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andexperiences.T
here are two types
of knowledge
bases.a. Machine
readable
knowledgebases: The
knowledge base
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helps the
computer
to process
through. It
makes the data
in the computerreadable code
which makes
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theoperator to
perform easier.
Such information
sare used by
semantic web.
Semantic web isaweb that will
make a
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description of the
system that a
system can
understand. b.
Human readable
knowledgebases: They are
designed to help
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people to
retrieveknowledg
e. The
information need
to be processed
by the reader.The reader can
accessthe
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information and
synthesize their
own.KBS refers
to a system of
data and
information usedfor decision
making. The
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system
isautomated to
work on the
knowledge based
data and
informationrequired in a
particular domain
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of management
activity. The
processing is
done based on the
past decisions
takenundersuitable
conditions.
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Decision making
is based on the
fact that the
condition
issimilar to the
past situationhence the
decision is also is
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similar.Examples
of KBS are
intelligent
systems, robotics,
neural networks
etc.
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Online Analytical
Processing
(OLAP)
OLAP refers to asystem in which
there arepredefined
multiple
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instances of
variousmodules
used in business
applications. Any
input to such a
system results inverificationof the
facts with respect
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to the available
instances.A
nearest match is
found
analytically and
the resultsdisplayed form
the database.
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Theoutput is sent
only after
thorough
verification of
the input facts
fed to the system.Thesystem goes
through a series
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of multiple
checks of the
various
parameters used
in business
decision making.OLAP is also
referred to as a
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multi
dimensional
analyticalmodel.
Many big
companies use
OLAP to get goodreturns in
business.- 3 -
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The querying
process of the
OLAP is very
strong. It helps
the management
take decisionslikewhich month
would be
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appropriate to
launch a product
in the market,
what should bethe
production
quantity tomaximize the
returns, what
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should be the
stocking policy
inorder to
minimize the
wastage etc.A
model of OLAPmay be well
represented in the
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form of a 3D box.
There are six
facesof the box.
Each adjoining
faces with
common vertexmay be
considered to
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represent
thevarious
parameter of the
business situation
under
consideration.E.g.: Region, Sales &
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demand, Product
etc.
Model of OLAP
Decision Support
Systems (DSS)DSS is an
interactive
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computer based
system designed
to help the
decision makers
to useall l the
resourcesavailable and
make use in the
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decision making.
In management
many atime
problems arise
out of situations
for which simplesolution may not
be possible.
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Tosolve such
problems you
may have to use
complex theories.
The models that
wouldberequired to
solve such
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problems may
have to be
identified. DSS
requires a lot
of managerial
abilities andmanagers
judgment.You
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may gather and
present the
following
information by
using decision
supportapplication:• Accessing all
of your current
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information
assets, including
legacy and
relational
datasources,
cubes, datawarehouses, and
data marts•
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Comparative sales
figures between
one week and the
next• Projected
revenue figures
based on newproduct sales
assumptions- 4 -
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alternatives, given
past experience in
a contextthat is
described.Manag
er may
sometimes find itdifficult to solve
such problems.
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E.g. – In a
sales problem if
there is multiple
decision
variables
modeled as asimple linear
problem
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buthaving
multiple optima,
it becomes
difficult to take a
decision. Since
any of themultipleoptima
would give
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optimum results.
But the strategy to
select the one
most suitable
under conditions
prevailing in themarket, requires
skills beyond the
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model.It would
take some trials to
select a best
strategy. Under
such
circumstances itwould beeasy to
take decision if a
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ready system of
databases of
various market
conditions
andcorresponding
appropriatedecision is
available. A
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system which
consists of
database pertainin
g to decision
making based on
certain rules isknown as
decision support
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system.It is a
flexible system
which can be
customized to suit
the organization
needs. It canwork in the
interactive mode
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in order to enable
managers to take
quick decisions.
You canconsider
decision support
systems as thebest when it
includes high-
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level
summaryreports
or charts and
allow the user to
drill down for
more detailedinformation.A
DSS has the
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capability to
update its
decision database.
Whenever
manager feels that
a particulardecision is
unique and not
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available in the
system, the
manager can
chose toupdate
the database with
such decisions.This will
strengthen the
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DSS to take
decisions
infuture.There is
no scope for
errors in decision
making whensuch systems are
used as aid
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todecision
making. DSS is a
consistent
decision making
system. It can be
used togeneratereports of
various lever
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management
activities. It is
capable of
performing
mathematicalcalc
ulations andlogical
calculation
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depending upon
the model
adopted to solve
the problem. You
can summarize
the benefits of DSS into
following:•
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Improves
personal
efficiency•
Expedites
problem solving•
Facilitatesinterpersonal
communication•
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Promotes learning
or training•
Increases
organizational
control•
Generates newevidence in
support of a
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decision• Creates
a competitive
advantage over
competition•
Encourages
exploration anddiscovery on the
part of the
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decision maker •
Reveals new
approaches to
thinking about the
problem space- 5
-3. What are Value
Chain Analysis &
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useful in terms of
MIS?
Answer:ValueChain Analysis:
The activitiesperformed by a
particular
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enterprise can
be analyzed into
primaryactivities
, which directly
adds value to the
enterprise’sfactors of
production,
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which aretogether
referred to as the
‘value chain’, and
supporting
activities.
Figure: ProductDifferentiation and
Value Chain
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representationPort
er’s Enterprise
Value-Chain
Value-additionactivities like
production,marketing
delivery, and
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inputs,
technology,
human
resources, or
overall
infrastructurefunctions to support
the primary
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activities.It is
possible to reduce
the transaction
cost by proper
coordination of
all the activities.Itshould be
possible to gather
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better
information for
various controls
and also replace
thesame by less
costlier activities.It will also be
possible to reduce
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the overall time
requiredto
complete an
activity.Therefore
coordination is
very important toachieve
competitive
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advantage. For
this it isnecessary
to manage the
value chain as a
system rather
than as separateparts.
Anenterprise’s
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value chain for
competing in a
particular
industry is
embedded in a
larger - 6 -
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MB0047-
Management
Information
Systemstream of
activities. What
Porter termed as‘value system’,
may be referred
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to as the‘industry
value-chain’.
This chain
consists of
mainly the
suppliers anddistributionchann
els. Any activity
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changes the
direction of the
value chain.• Shifting buyer
needs
–
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The buyers have
been increasing
their demands to
satisfy their needs
in the form
convenience andbetter price and
features. This
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demand
influences
achange in the
related market
segments;
• Variation inindustry
segmentation
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– The value
system
undergoes a
changedepending
upon the
existence of oldand new systems
and its
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components in
the valuechain.
Organizations,
which fail to
adjust will have to
close down their business.•
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conditions.
Enterprises
which continue
to work on the
older approaches
in outdated modesof operation
suffer.
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• Changes in
government
regulations –
If there is achange in the
standards of the product of the
enterprise, with
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respect to the
environmental
controls,
restrictions on
entryto the
market, and tradebarriers then it
affect the
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performance of
the enterprise.
BPR
The existing
system in the
organization istotally
reexamined and
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radically modified
for incorporating
the latest
technology. This
process of
change for thebetterment of
theorganization is
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called as Business
process re-
engineering. This
process is mainly
used tomodernize
and make theorganizations
efficient. BPR
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directly affects
the performance.
Itis used to gain
an understanding
the process of
business and tounderstand the
process tomake it
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better and re-
designing and
thereby
improving the
system.BPR is
mainly used forchange in the
work process.
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Latest software
is used
andaccordingly
the business
procedures are
modified, so thatdocuments are
worked
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uponmore easily
and efficiently.
This is known as
workflow
management.
Signification of BPR
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Business process
are a group of
activities
performed by
various
departments,variousorganizati
ons or between
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individuals that is
mainly used for
transactions in
business.There
may be people
who do thistransaction or
tools. We all do
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them at one point
or another either
as a supplier or
customer. You
will really
appreciate theneed of
processimprove
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ment or change
in the
organizations
conduct with
business if you
have ever waitedin the queue for a
longer time to
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purchase 1 kilo of
rice from a Public
DistributionShop
(PDS-ration
shop). The
process is calledthe check-out
process. It is
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called
process because
uniform standard
system has been
maintained to
undertake such atask. Thesystem
starts with
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forming a queue,
receiving the
needed item form
the shop, getting
it- 7 -