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The Production Planning Process Table of Contents xi
82
The SAP ERP Approach to Production Planning 83
Sales Forecasting 84
Exercise 4.2 85
Sales and Operations Planning 85
Sales and Operations Planning in SAP ERP 88
Disaggregating the Sales and Operations Plan in SAP ERP 93
Exercise 4.3 95
Demand Management 95
Exercise 4.4 97
Materials Requirements Planning (MRP) 97
Bill of Material 97
Lead Times and Lot Sizing 98
Exercise 4.5 101
Exercise 4.6 101
Materials Requirements Planning in SAP ERP 101
Detailed Scheduling 105
Providing Production Data to Accounting 107
Exercise 4.7 108
ERP and Suppliers 108
The Traditional Supply Chain 109
EDI and ERP 110
The Measures of Success 112
Exercise 4.8 112
Chapter Summary 114
Key Terms 114
Exercises 114
For Further Study and Research 115

Chapter 5 Accounting in ERP Systems 117
Accounting Activities 118
Using ERP for Accounting Information 121
Operational Decision-Making Problem: Credit Management 123
Industrial Credit Management 123
Fitter’s Credit Management Procedures 124
Credit Management in SAP ERP 124
Exercise 5.1 127
Product Profitability Analysis 127
Inconsistent Record Keeping 127
Inaccurate Inventory Costing Systems 128
Inventory Cost Accounting Background 128
ERP and Inventory Cost Accounting 129
Product Costing Example 130
Exercise 5.2 131
Product Cost Analysis in SAP ERP 131
Activity-Based Costing and ERP 132

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