Warehouse management system accounting

As with MRP and MRPII, there is no universal set of ERP functions. However, the fundamental characteristics of current ERP systems are i) it is packaged software which integrates the majority of a business processes, ii) it uses a data warehouse that allows real time access, and iii) it processes many of the firm s transactions and integrates them with planning. A typical ERP system contains three layers the production layer which consists mainly of manufacturing, the back-office layer which includes such core functions as human resource management and accounting, and the front-office layer which com-... 

In traditional stock managment there are two basic approaches see Chapter 7, namely the pull approach and the push approach. In a pull system a warehouse is viewed as independent of the supply chain and inventory is replenished with order sizes based on apredetermined stock level for each warehouse. The stockmanage-ment model for the pull syston is normally geared to establish re-order level (ROL) and re-order quantity (ROQ). That is, when the stock drops to a certain level, a re-order is triggered of a predetermined amount. The ROQ takes into account past danands and the lead times for a re-order to be satisfied. The aim is to have as small amount of inventory as possible on hand at any one time, and the ROQ should likewise be as small as possible. However in some processes, such as a batch system, there will be a minimum amount that can be produced and in other cases there can be economies of scale which will determine the optimal size of an order. The push method is used when economies of scale in procurement outweigh... 

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