Which of the Following Is Not a Disadvantage of ERP

question 117

Multiple Choice

Which of the following is not a disadvantage of ERP systems?

• A) They involve an ongoing process for implementation, which may never be completed
• B) They have software that is off-the-shelf coding.
• C) Expertise in ERP is limited, with staffing an ongoing problem.
• D) They are so complex that many companies cannot adjust to them.
• E) Implementation may require major changes in the company and its processes.

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Definitions:

Aggregate Planning

An operational activity in which a company determines optimal levels of capacity, production, subcontracting, inventory, and labor to meet demand.

Capacity Levels

Refers to the maximum amount of work or production output that a facility can achieve under normal operating conditions.

Safety Inventory

Additional stock that is kept on hand to protect against variability in demand or supply, ensuring product availability.

Aggregate Planning

The process of creating a production plan to meet demand over a medium-term horizon while minimizing costs.