Inventory management is largely self-contained in the sense that very little coordination among the sales, purchasing, and production personnel is required for successful inventory management. True False

False

Explanation:

Inventory management is one of the most complex processes and it is also one of the processes that benefited the most from ERP software.

Enterprise resource planning (ERP) software integrates all the different units within a company and allows them to share information. It is extremely useful for coordinating sales, production, finance and inventory management.

Imagine the following situation:

You are a salesperson for ABC Corp, and you sell pencils. Now you go to visit Office Depot main headquarters to offer your pencils. The people at Office Depot are delighted by the quality of your pencil and immediately want to order 1 million pencils. But you have a problem, you do not know if you can sell them 1 million pencils. So you have to make your client wait until you go back to the factory and check if you have 1 million pencils in inventory, but you don't. So now you have to go to the production department and ask for 1 million pencils. But they don't have the materials to build 1 million pencils, so you must go to the purchase department and ask them to buy the materials for the 1 million pencils. Since the purchase department doesn't know if they have enough money to buy the materials, you have to go to the finance department. Once in the finance department you are told that you can go on with the sale because the they have the money. Now you must go back over your own steps to the purchase department, the production department, the inventory department and tell everyone that you have the OK for the pencils. Now, you can go back and sell the pencils.

Believe it or not, the process I described was the standard process before SAP (the first ERP software company) started providing SAP software. Now, instead of spending hours or days going form one place to another, you can do it in 5 minutes.

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

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