Accounting Information Systems (ERP system)

Kelly Mancini Industries (KMI) is a manufacturer of warehouse and inventory tracking system. KMI has four U.S. plants and three warehouses. The company employs 3,500 workers at these facilities and the corporate headquarters. KMI is using legacy systems for its accounting, materials requirements planning, receivables, payables, inventory, and payroll processes. These various legacy systems were developed at different times and do not necessarily have common data formats or programming. Often, KMI must export data from one legacy system to incorporate into a second legacy system. The president has decided that the company must switch to an ERP system to bring the company's systems up to date and enable the company to remain competitive. 1. Explain how an ERP system would be beneficial to KMI and/or alleviate issues caused by legacy systems. 2. Explain the risks of an ERP system to KMI. 3. If KMI undertakes a modular ERP implementation for its 6 legacy systems, identify the legacy system that is required to be setup in the ERP before any other legacy system (justify your answer). 4. If KMI wanted to implement the inventory module of an ERP, what other modules would you recommend to be concurrently implemented with the inventory module (hint: think about the business activities impact inventory)