Group Assignment - Post 3

Part 1. Decision Support System

Example 1: Break even Calculator
The following calculates the break-even point for a firm based on some information we provide. A firm's break-even point occurs when at a point where total revenue equals total costs.

Break-even analysis depends on the following variables:

1. Selling Price per Unit: The amount of money charged to the customer for each unit of a product or service.
2. Total Fixed Costs: The sum of all costs required to produce the first unit of a product.
3. Variable Unit Cost: Costs that vary directly with the production of one additional unit.
4. Total Variable Cost The product of expected unit sales and variable unit cost, i.e., expected unit sales times the variable unit cost.
5. Forecasted Net Profit: Total revenue minus total cost. Enter Zero (0) if you wish to find out the number of units that must be sold in order to produce a profit of zero (but will recover all associated costs)

Operational management
- When a firm collected these data, it is easily to show the break-even point of products, it is the point at which your product stops costing you money to produce and sell and starts to generate a profit for the firm.

Middle Management
- It can help the middle management of firm to plan resource allocation, short-range plans and performance of specific departments, task forces, teams, and special project groups.

Senior Management
- It can help to decision affect long-term and strategic goals and the firms objectives.

Example 2: Customer Life time Value Calculator

This value is calculated by estimating the income and costs associated with each customer over the projected length of the customer relationship.

Middle Management - It can know the relationship of customers with a firm.

Part 2. OpenBravo ERP Demo

As per OpenBravo ERP Demo, it can be used to handle each step within the order-to-cash business process below:

- Accept/Enter Order: Sales Management Module
- Order Acknowledgement: Sales Management Module
- Purchase Materials: Production Management Module
- Receive Materials: Production Management Module
- Production: Production Management Module
- Packing: Sales Management Module
- Shipping: Sales Management Module
- Invoicing and Collection: Sales Management Module

Part 3. ERP System

Enterprise Resource Planning (ERP) system is a packaged business software which is used to collect and manage information across different functional areas in an organization. The functional areas of ERP system included manufacturing & production, finance & accounting, sales & marketing, supply chain & inventory and human resources.

The grouping of workers and assets along functional lines appears to be a logical choice to manage taskes as efficiently as possible. The coordination and planniing required in moving goods and services from one function to the next introduces tremendous delays and toher forms of waste.