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CH A P TE R4

PRODUCTION AND SUPPLY

CHAIN MANAGEMENT

INFORMATION SYSTEMS

L E ARNING O BJ ECTIVE S

After completing this chapter, you will be able to:
• Describe the steps in the production planning process of a high-volume
manufacturer, such as Fitter Snacker
• Describe Fitter Snacker’s production and materials management
problems
• Explain how a structured supply chain management planning process
enhances efficiency and decision making
• Understand how production planning data in an ERP system can be
shared with suppliers to increase supply chain efficiency

I N TRODUCTION

In Chapter 2, you learned that Enterprise Resource Planning (ERP) has its roots in materials

requirements planning (MRP) processes and software. Materials requirements planning, and the

extension of that process to partners in the supply chain, are important parts of today’s ERP

systems. In fact, effective supply chain management is critical to the success of companies such as

Fitter Snacker. In this chapter, we will first examine how Fitter manages its production activities, and

then we will explore some supply chain management functions in an ERP system. We will also we

will look at the broader concept of supply chain management.

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