Chapter 17: IOT & ERP

Question 1

What is enterprise resource planning?

Answer 1

~ a comprehensive software approach for PLANNING and CONTROLLING the business

~ integrated systems

~ data in the cloud

Question 2

What are the requirements for ERP?

Answer 2

~ consistent numbers across all applications

~ software should be multifunctional, modular, integrated

~ capacity for all transaction processing in real time

~ routine decision making

Question 3

What is transaction processing?

Answer 3

~ uses point of sale data from a retail store

~ uses data integration: data entered by one functional area updates all other functional areas

Question 4

What are the parts of Manufacturing Planning and Control Activity Support (MPC)?

Answer 4

1. Forecasting
2. Production planning
3. Material planning
4. Inventory management

Question 5

What is Integrated Supply Chain Metrics?

Answer 5

~ measures impact of decisions on the entire supply chain

~ avoids development of functional silos

Question 6

What is average daily sales?

Answer 6

~ Sd = S / d = sales over d days / days

Question 7

What is accounts receivable days?

Answer 7

~ ARd = AR / d = avg. receivables over d days / d days

Question 8

What is the average daily cost of sales?

Answer 8

Cd = Sd * CS

~ CS: cost of sales over d days

Question 9

What is average days of inventory?

Answer 9

Id = I/Cd

~ I = inventory over d days

Question 10

What is accounts payable cycle time?

Answer 10

APd = AP / Cd

~ AP = accounts payables over d days

Question 11

What is cash-to-cash cycle time?

Answer 11

= ARd + Id - APd
= inventory days of supply + days of sale outstanding - avg. payment period for material