Exam 7: Supporting Processes With ERP Systems

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For a product to be considered a true ERP product,it must include applications that integrate the processes in the following business functions: - Supply chain management (procurement,sales order processing,inventory management,supplier management,and related activities) - Manufacturing (manufacturing scheduling,capacity planning,quality control,bill of materials,and related activities) - Customer relationship management (sales prospecting,customer management,marketing,customer support,call center support) - Human resources (payroll,time and attendance,HR management,commission calculations,benefits administration,and related activities) - Accounting (general ledger,accounts receivable,accounts payable,cash management,fixed-asset accounting)

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Although the term enterprise resource planning (ERP)is relatively new,businesses have been using IS to support their processes for 50 years,well before the Internet.In the 1960s,a business could use a dedicated phone line,a computer card reader,and punch cards to send inventory orders to a supplier.By the 1970s,businesses began to buy their own mainframe computers,and manufacturing companies began to use software called material requirements planning (MRP)to efficiently manage inventory,production,and labor.As computing power became cheaper,manufacturing resource planning (MRPII)was developed that added financial tracking capabilities as well as the opportunity to schedule equipment and facilities.The business environment continued to evolve with the advent of just in time (JIT)delivery,which integrated manufacturing and supply.