Fitter’s flawed supply chain
management process
Communication problem
 Warehouse inventories are depleted
 Shortage or stockout of these materials
 Unexpected spikes in demand
Inventory problem
 Database are not updated in real time
 Lack of trust between sales and
marketing department.
Accounting and purchasing problem
 Standard costs: normal costs of
manufacturing a product
 Production and Accounting must
periodically compare standard costs with
actual costs and then adjust the accounts
for the inevitable differences
the ways in which an ERP system
could alleviate some of these
problems. Identify at least three
processes.
Using SAP ERP system generates a forecast,
and the planner can view the results
graphically
Using MPS, which is an input to detailed
scheduling, which determines what bars to
make and when to make them
Providing Production Data to Accounting,
which means in an integrated ERP system, the
accounting impact of a material transaction
can be recorded automatically