Using MIS (10th Edition)
Using MIS (10th Edition)
10th Edition
ISBN: 9780134606996
Author: David M. Kroenke, Randall J. Boyle
Publisher: PEARSON
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Chapter 7.8, Problem 7.5ARQ

Explanation of Solution

ERP:

It stands for Enterprise Resource Planning. This empowers the business processes with the target to becoming highly efficient and highly profitable. It is an integrated process that unites business operations into a distinct, reliable and computing platform.

Capability of the ERP product:

In order to consider a product as the true ERP product, it must contain an application that integrates supply chain, manufacturing, CRM, human resources, and accounting.

Supply chain: It includes activities like sales ordering process, managing inventory, supplier management, etc.

Manufacturing: It includes, planning, scheduling, controlling, etc.

CRM: It contains activities like customer support, marketing, and its related activities.

Human resources: It contains activities like maintaining time and attendance, payroll, and its related activities.

Accounting: It includes cash management, general ledger, etc.

Components of ERP system:

ERP system contains five components. They are:

  • Programs
  • Database
  • Procedures
  • Training
  • Consulting

Programs:

  • The programs are configured in such a way that it meets all the requirements that an organization needs.
  • It is also designed in a way that the developers can change the configuration whenever required.
  • It is not designed to meet every customer needs as it is so complicated.

Database:

  • It is important to consider a program before implementing ERP because, it contains numerous databases that stores and manages the organization’s data...

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