Question
Assertion (A): Enterprise Resource Planning (ERP) is
useful in a manufacturing company. It does not find application in service industry. Reason (R): Enterprise Resource Planning (ERP) enables a high level of interaction and coordination along the supply chain. Directions: The following items consist of two statements, one labelled the 'Assertion (A) and the other labelled the 'Reason (R)'. You are to examine these two statements carefully and decide if the Assertion (A) and the Reason (R) are individually true and if so, whether the Reason (R) is a correct explanation of the Assertion (A). Select your answers to these items using the Codes given. below and mark your answer-sheet accordinglySolution
• Enterprise resource planning (ERP) is a platform companies use to manage and integrate the essential parts of their businesses. Many ERP software applications are critical to companies because they help them implement resource planning by integrating all the processes needed to run their companies with a single system. • ERP applications also allow the different departments to communicate and share information more easily with the rest of the company. It collects information about the activity and state of different divisions, making this information available to other parts, where it can be used productively. • An ERP software system can also integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more. • ERP software can be used by variety of companies, ERP software has expanded to include nearly all types of businesses. Typically, each company will have its own specific reasons to implement an ERP solution. Therefore, assertion is incorrect. • he components of an ERP system depend on the organization's needs. However, there are key features that each ERP should include. Generally, packages include finance, human resource, logistics and manufacturing, supply chain management, and customer relationship management and ERP also streamlines various components of the Supply chain, therefore the reason is correct. • Hence the correct answer will be option D.
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