Enterprise Resource Planning - Edited
Enterprise Resource Planning - Edited
Enterprise Resource Planning - Edited
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ENTERPRISE RESOURCE PLANNING 2
advanced over the years to address efficiency, profitability and productivity in production
companies. One of the modules in EPR is the production and supply chain management that
enables the business to manage its supply chain efficiently. Supply chain management alongside
ERP looks at the entire supply system from raw materials to complete products on the market
(Ray, 2011).
A good production plan describes the number of snack bars and the period the bar will be
produced. Besides, the quantity of raw materials required in the entire production process is
described in the production level. ERP uses three approaches to explain production. Make-to-
stock: products are prepared for record in expectancy of sales orders. Make-to-order: products
are crafted specifically for individual customers. Assemble-to-order: combines both Make-to-
The production planning develops a plan followed when producing certain products with
time increments and raw material requirements to meet the supply chain. It is made of several
processes; sales forecasting, creating inventory, planning for sales and operations, managing
demands, purchase of raw materials and the actual production (Kurbel, 2013).
Sales and operations process is when the company's products are determined, and thus an
inventory with a specified capacity should be created. The demand management process is where
the production plan is broken down into smaller time specifications in the production process.
The production schedule is required staff is outlined in the detailed scheduling process (Kurbel,
2013). The plan feasibility is evaluated using rough-cut capacity planning to achieve the market
level.
ENTERPRISE RESOURCE PLANNING 3
ERP ensures that Production planning data is shared to suppliers to show the company's
competency and warmth in the industry. This data can be transmitted through documentation and
separate emails through computerized processes in the ERP software (Ray, 2011).
ENTERPRISE RESOURCE PLANNING 4
References
business processes and software for manufacturing companies. Springer Science &
Business Media.