General Automotive currently uses an ERP system to manage all of its production operations and coordinate them with the other operations of the company. The company also wants to implement a just-in-time (JIT) inventory system. Unfortunately for General Automotive, ERP is incompatible with JIT, so if it adopts the new inventory system it will have to abandon ERP.

Question

Quizplus · Accepted Answer

The first step in a just-in-time inventory system requires the firm to determine what parts and materials will be needed and when they will be needed. An enterprise requirement planning (ERP) system can help the firm accomplish this step efficiently. The firm then informs suppliers of its needs. Suppliers are expected to deliver the parts and materials just in time to go on the assembly line.

General Automotive Currently Uses an ERP System to Manage All