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...