Enterprise resource planning: (noun); An accounting-oriented information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders. Referenced from:- the APICS Dictionary, 10th edition Enterprise resource planning (ERP) systems started as a means for inventory control and grew to replace islands of information by integrating traditional management functions, such as financials, payroll, and human resources, with other functions including manufacturing and distribution. Currently, the complexity of …
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showed last 75 words of 651 total
…time (JIT), which aimed to eliminate waste and material lag time, meant that suppliers and manufacturers had to develop closer relationships. Also, labor exploitation caused cost of goods sold (COGS) to shift to purchase materials. Planners needed to know the cost of material allocations immediately after orders were placed, but buyers purchasing raw materials need to know the sales plan months in advance. A common database had to be developed: Enterprise Resource Planning was evolved!