Q1. Discuss the need of ERP in Retail Enterprises with example.

Ans: Need of ERP in Retail Enterprises: Enterprise Resource Planning systems or the ERP systems refer to the software packages that integrate all the data and the related processes of an organization into a unified Information System (IS). An ERP system uses a central database that holds all the data relating to the various system modules. In order to achieve a seamless integration, an ERP system uses multiple hardware and software components. ERP packages are heavily used by larger retail chains. Designed to facilitate the administration and optimization of internal business processes across an enterprise, ERP packages have become the competitive tool for most large retail organizations. ERP software uses a single database that allows the different departments to communicate with each other through information sharing. ERP systems comprise function-specific components that are designed to interact with the other modules such as the Order Entry, Accounts Payable, Accounts Receivable, Purchasing, Distribution etc. EXAMPLE: It comprise of different modules such as order entry, purchase, sales, finances, inventory management, DRP (Distribution Resource Planning) and human resources. The components are designed to work effortlessly with the rest of the system and provide a consistent user interface throughout the system. Challenges to the Retail Enterprises: 1. Market competition 2. Regulatory pressures Problems with Enterprise Applications in the Retail sector: 1. Outdated architecture 2. Limited scope 3. High maintenance costs 4. Integration and scalability problems

5. Increased risk to the business Advantages of using ERP in Retail Enterprises: • • • Retail specific components Segment specific expandability option Support for the store system

----------*------------*------------*-----------Q2. “Closed loop relations are often mandatory in ERP”- comment and explain. Ans: ERP is a global, tightly integrated closed loop business solution package and is multifaceted ERP promises one database, one application and one user interface for the entire enterprise. ERP system enhances a manufacturer ability to accurately schedule production, fully utilize capacity, reduce inventory, and meet promised shipping dates. Closed-loop ERP- incorporates the aggregate production plan, the master production schedule material requirements plan, & capacity requirements plan. A closed-loop system is a software application that helps the manufacturer keep track of inventory and use that knowledge, along with other production variables, to adjust future manufacturing plans.

In such a model, the original equipment manufacturer (OEM) takes responsibility for the return loop (RL) process. Product returns (also known as cores) often come directly from customers or retail channels, but they can also come from production facilities in the form of manufacturing by-products or components that fail to meet the manufacturer's quality control criteria. Returned products are counted as inventory because they can be inspected and resold, refurbished or used for parts. By closing the loop and managing the product lifecycle in a holistic manner, the manufacturer has more control over both supply chain and manufacturing planning.

----------*------------*------------*-----------Q3. Suppose you have a new business process applied to your business process but your current ERP does not have those capabilities to process. How can you manage to make your company with profit in this adverse situation? Ans: Current ERP systems are complex, multi-module, multi-user systems that are in use in nearly every industry. Making changes to these finance, human resource, and supply chain applications requires a well-planned process. It involves business partners, programmers, and project managers. Even simple changes can affect the application code in multiple areas. Main problems in ERP: • • • • ERP systems have a complex structure (complexity kills security) Mostly available inside a company (closed world) Contain much different vulnerability in all the levels from network to application Rarely updated because administrators are scared they can be broken during updates

To manage to make the company with profit in adverse situation we need to follow the given below instructions: • Document the current system with use cases and a version control process. This will give you a baseline of how the system is used, and

how it is configured. Be sure to document all security settings and reports, modules and pages in use. • Create a change control request process. Include who can make, and approve, change requests. Your request process should include a service level agreement about how long it will take change requests to be reviewed, and who will communicate whether or not they have been approved. Create a communication plan and identify roles and responsibilities. Your application should have both functional and technical owners for each module. In a financial ERP, for example, this could include the accounts payable, general ledger, and asset management modules. The owners will likely be deciding if modifications will move forward, or not, and communicating to their business areas. Identify change sponsors and testers. List how often, and in what cases you will communicate to your user group. Document a testing plan, which includes unit, integration, load, and user acceptance testing. Changes to an ERP can often affect multiple modules. Your test plan should first test the specific change being made. It should also include at least one round of full user acceptance testing where tasks are performed in other modules as well. Plan a release schedule and create guidelines for ad-hoc or emergency changes. Non-urgent or "nice-to-have" changes should be bundled into regular releases, or upgrades. Plan how often these will occur, and let users and programmers know that urgency will decide when a modification is moved through to production. Provide a route for emergency changes, such as those that may be dictated by a security breach, new legislation, or an audit risk. Include all documentation in one document called the Change Control Plan, and distribute it to all affected teams, prior to any backlog of change requests. When changes are approved, make sure that all of the module owners have signed off before code changes are made to the production environment.

----------*------------*------------*-----------Q4. What is MPS? How it is significant in case of MRP?

Ans: A master production schedule (MPS) is a plan for individual commodities to produce in each time period such as production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods. Since an MPS drives much factory activity, its accuracy and viability dramatically affect profitability. Typical MPS's are created by software with user tweaking MPS significant in case of MRP: It is important as firm uses MRP to coordinate production schedule of the component part manufacturing and assembly operations. The details for starting production of the various components and assembly of the product are taken care of by the MRP system. For instance, when the sales department records a sale, the forecast demand may be automatically shifted to meet the new demand. Inputs may also be inputted manually from forecasts that have also been calculated manually. Outputs may include amounts to be produced, staffing levels, quantity available to promise, and projected available balance. Outputs may be used to create a Material Requirements Planning (MRP) schedule.

----------*------------*------------*-----------Q5. “ERP is suitable for big companies only”- Comment over the statement. Ans: I don’t agree with this comment. In fact, small businesses require ERP necessarily. On my reflection, the growing small companies vary the flow with manual intervention irregularly. They can control and solve this problem via executing ERP. The key problem is

the cost of ERP. They can't afford to have all this expensive ERP, such as SAP R3. So they would be elected an adaptive ERP by ERP supplier or professional consultants. This is one of the main misconceptions prevailing among some small and medium sized companies. This is due to the unawareness of the functioning of an ERP system. Mainly what is to be understood is that an ERP system automates business processes across an organization and thus eliminates inefficiency caused by a legacy system. Nowadays, Simple ERP systems is the heart of every small and midsized organizations as it manages the different types of computing activities and fix them up through its integrated approach. In any small and midsized organization, it is very crucial to keep track of its information as there might be large flow of information both inside and outside and thus flow of information makes the management more complex task. Thus, a centralized solution, which can handle all the information inflow and outflow from a common platform, is a must. Here comes WorkForceTrack.com with it is integrated approach and simple solution. Therefore, if companies are looking for ERP solutions to manage your human resource modules or supply chain operation like product planning, inventory control, production control, etc, Workforce Track is the best Solution that can help to run businesses successfully. It is true that there are some big players like SAP in the market that may be taking care of business process of huge organizations. But today, medium and small sized companies are benefited from automation and streamlining of their business process with efficient and affordable web-based ERP solutions like eresource. ERP systems are designed for large, small and medium sized organizations across every industry.

----------*------------*------------*-----------Q6. “Inventory control is a significant part of ERP systems”- How? Explain with proper justification. Ans: Inventory control is a significant part of ERP systems because of the given below features:

ERP inventory control handles everything from ordering, physical inventory count, scheduling, shipping, receiving, purchasing, and supply chain planning. Changes in inventory are automatically updated. It no longer takes hours (sometimes up to 24) before the changes is recorded. This helps inventory management employees to be able to see if an item is currently in stock. Faster service means better customer service. ERP management uses bar codes to keep up with inventory items. This makes tracking stock much easier. As the bar-coded items leave inventory, they get scanned and their product information is entered into the ERP inventory management system. Placing bar code labels on stock helps companies save money because it keeps the list of stock updated. Employees can easily see when certain quantities are low and need to be re-stocked. Customer service also benefits from this because businesses and customers can see what products are immediately available.

ERP (Inventory Management module) Inventory Management module is sub divided into different modules as under Inventory Requisition. • • Inventory Order Assessment Inventory Placing.

• • • • •

Supplier Performa. Order Received. Quality checks Minimum Inventory Assessment. Maximum Inventory Assessment.

ADVANTAGES OF INVENTORY CONTROL IN ERP SYSTEMS: ERP inventory management has many advantages. The main advantage for a company is that the ERP system is company-wide and involves only one software system. Companies that do not use ERP management will sometimes have several different software applications that are not compatible with one another. DISADVANTAGES OF INVENTORY CONTROL IN ERP SYSTEMS: Despite the advantages businesses receive from using ERP inventory management; there are also some problems with it. Most of these disadvantages stem from inadequately trained employees as well as compromised data. But there are other concerns that can arise from this type of system.

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