Enterprise Resource Planning on Inventory Management

By

ACKNOWLEDGEMENT

I am very grateful to God who has given me the grace to start this course and end it successfully. I would like to thank my family especially my dad, who worked really hard and stood by me all the way. God bless my family who gave me full support and encouraged me. I would like to thank my supervisor Ms Emily Thomson, for her patience and support. Finally to my friends and all who have made the completion of this project a success, thank you and God bless you.

DECLARATION

I declare that the work in this dissertation was carried out by me. The project is my own original work and has not been submitted elsewhere in fulfillment of the requirements of this or any other award.

SIGNED: ............................................................. DATE: ..........................

EXECUTIVE SUMMARY

This study examined the impact of implementing the enterprise resource planning system on the inventory management in dairy producing firms, investigating the relationship between the enterprise system and the management of the firm's inventory. In order to acquire this result, this study showed the integration of the firm's internal processes, and processes with their partners, by sharing the information through a centralized database, and by using supply chain technology applications and information systems such as ERP. The value of ERP has increased rapidly over the past several years and it has been very useful for firms that are involved in the manufacturing sector. There were various concepts of ERP which were highlighted in a proper way and there is a need for further advancement of ERP applications in the future. In this way, the mechanism of inventory management will improve considerably in the upcoming future. Therefore, all the issues related to Enterprise Resource Planning were discussed in detail.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

EXECUTIVE SUMMARYIV

CHAPTER 1: INTRODUCTION1

1.1 Background of the issue1

1.2 Purpose of the Study1

1.3 Research Questions2

1.4 The Scope and Limitation of the Study3

CHAPTER 2: LITERATURE REVIEW4

2.1 Overview of the topic4

2.2 Theories regarding ERP5

2.3 Li Zhang and Chuan Li Chinese study in 20069

2.4 ERP Process11

2.5 Results derived from these theories15

2.6 Integrated Nature of ERP Systems16

2.7 Role of processes and people in ERP17

2.8 Role of Quality Improvement in ERP17

2.9 Socio technical Systems Theory19

2.10 The role of Business Performance Measure for ERP Systems20

2.11 Successful Implementation of ERP in various organizations22

2.12 Benefits of ERP and Systems Integration24

CHAPTER 3: METHODOLOGY27

3.1 Overview of the Research Methodology27

3.2 Re-Statement of Research Questions27

3.3 Research Methods28

3.4 Data Collection Instruments30

3.5 Validity and Reliability31

3.6 Ethical Concerns31

CHAPTER 4: DISCUSSION ANALYSIS32

4.1 The implementation of ERP in the companies32

4.2 Relationship between ERP and Supply Chain33

4.3 Different concepts related to ERP34

4.4 The importance of ERP in Manufacturing Sector37

CHAPTER 5: CONCLUSION44

5.1 The outcome of the research44

5.2 Limitations of the Research44

5.3 Recommendations for Future Research45

REFERENCES46

CHAPTER 1: INTRODUCTION

Background of the issue

Many theories consider the importance of implementing enterprise systems, and other technologies in firms to support all the supply chain processes, but also to be fair they stated the good and the bad of such ...