Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A 5 % leftover of half of the sandwiches will mean 5 % of 6 varieties which is also equivalent to 1 0 % of

A 5% leftover of half of the sandwiches will mean 5% of 6 varieties which is also equivalent to 10% of 3 varieties. This means that even if there is a 10% additional sale of 2 varieties there is still a loss of 10% of 1 variety. The current format helps to exactly match the demand and avoid any losses due to leftovers. This means that the new format benefits the shop by revenue of 5% of 6 varieties and cost saving of 10% of 1 variety.
An ERP helps in many ways to manage inventory in a system. It helps to forecast the demand based upon the historical trends and accordingly ensure that there is adequate inventory in the system to meet this demand. It also helps to schedule raw material delivery because freshness is a value add for the sandwich shop. The ERP will also help to keep a check on the costs and regularize the purchase cycle which can help Ajax with supplier discounts.
The store can also keep a track of the inventory from purchase to sales and ensure that there is no excess raw material which may lead to wastage. It is also a good system to manage data and information in a more structured manner.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Process

Authors: Lee Long

4th Edition

978-0201822939,0201822938

More Books

Students also viewed these General Management questions