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Title: Enterprise Resource Planning Systems

  1. Outline the potential pitfalls that your company may encounter when implementing Supply Chain Management.

Supply Chain Management (SCM) refers to the management of all the activities and processes that are involved in the transportation of goods right from the raw materials to the supplier and ultimately, to the consumer. While the importance of supply chain management is to ensure that goods are moved faster to their intended destinations, it has pitfalls just like any other process. They can be categorized into supply chain integration, sharing of information, and the design of the supply chain network.

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Supply chain integration is classified through the relationship between sub-systems and that between the SCM system and internal business strategy. These relationships are always faced with internal technical challenges and my organization is no exception. On the other hand, information sharing may face a couple of challenges in my organization. They include failure to secure a singular motivating factor among partners and the lack of trust and cooperation among partners. Lastly, the major challenge that may befall the supply chain network design in an organization is the issue of planning and postponing in which case customers’ demands are not met on time.
2. In which industries is Supply Chain Management important? In which industries is it not? Why, or why not?

Supply Chain Management is important in most, if not all industries. It is safe to say that all industries, be it manufacturing firms, services, and retailers, need SCM to run smoothly with the objective of retaining customers. That said, supply chain management should be prioritized in medium-sized and large organizations. For example, any firm and public organization that has a minimum of twenty employees with at least four in management needs to have an SCM component.

Applying supply chain management to an organization helps improve its competitive advantage while at the same time bringing to light factors that may cripple or slow down the activities involved in the supply chain. Hotel industries, for example, usually engage in a very delicate process of providing services to its customers on a daily basis. Therefore, the Supply Chain Management system does a lot of good in ensuring that the whole process is meticulous.
3. Research a manufacturing company that has successfully implemented SCM. Did the company have an ERP system prior to the SCM implementation? Can the company quantify the benefits of having an SCM? How does the company measure success?

There are many companies that have successfully implemented SCM among them being Dell Inc. The U.S.-based, privately-owned multinational computer technology firm specialized in developing, selling, repairing, and providing support services relating to computers and related products. Over the years, Dell has gained recognition for having efficient supply chain management practices. Prior to this, Dell had an ERP system that was soon incorporated and implemented together with the SCM system to yield better results.

For Dell Company, the benefits that come with an efficient SCM are manifold. For instance, supply chain integration has led to effective  IT use, highly responsive and  flexible manufacturing systems, and payments being made on order which shortens the corporate cash flow, just to mention but a few. Dell measures its success of its system by determining just how well it delivers both as a company and in terms of customer service.
4. Explain how MRP logic can be implemented in a restaurant.

In a restaurant, lots of activities are involved the process of fulfilling market needs. Since MRP involves calculating materials needed or produced and the time period in which the orders should be made, it is very important in ensuring good restaurant management. Meanwhile, there are certain cost drivers that influence MRP implementations, and they include the number of items produced, the complexity of the production procedure, and the frequency of end items orders.

Due to the fact that that restaurants operators are increasingly concerned about quality in terms of MRP implementation, they can now begin to focus on making it work. Integrating MRP will ensure that all the products, their descriptions, and quantities are listed in the computer and generated. This will be a helpful move in terms inventory file management. Moreover, it will create a situation where the appropriate amount of each item unit is corrected each time there is a purchase.
5. Explain the difference between the MRP concept and the ERP concept.

Material Requirements Planning refers to a software-based system for inventory control and production planning that is used for managing manufacturing processes. Unlike ERP, MRP can be operated by hand. An MRP system has three main objectives. The first one is to ensure the availability of materials and products at all times for customer delivery. Secondly, it aims at maintaining the lowest levels of inventory. Lastly, it serves to plan all activities involving manufacturing, delivery, and purchasing in order to ensure consumer satisfaction.

On the other hand, Enterprise Resource Planning (ERP) refers to a set of management tools that organizations and companies apply in order to manage their businesses with high customer service and productivity levels by ensuring equilibrium between supply and demand. It integrates product planning, marketing and sales, cost, development, and manufacturing. Unlike MRP, the ERP software exists in three forms; generic, pre-configured, and installed.
6. How does an increase in MPS gross requirements affect the available to promise quantity?

A Master Production Schedule (MPS) is a plan that companies develop for production and inventory in each time period. It sets the required quantity per period for each finished product to be sold. An increase in MPS gross requirements increases the Available-to-Promise quantity as it provides for a greater variety of products.

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