Chapter 15. Resource Planning
In this chapter, you will learn about. . .
Material Requirements Planning (MRP)
Capacity Requirements Planning (CRP)
Enterprise Resource Planning (ERP)
Customer Relationship Management (CRM)
Supply Chain Management (SCM)
Product Lifecycle Management (PLM)
Connectivity, Integration, and Services
Web resources for this chapter include
OM Tools Software
Online Practice Quizzes
Lecture Slides in PowerPoint
Company and Resource Weblinks
Resource Planning AT HERSHEY'S
In a now classic case of IT implementation gone wrong, Hershey's spent three years and $115 million working to replace its many legacy systems with one integrated enterprise resource planning (ERP) system from market leader SAP. Delays caused the system to go live during the busy fall season, in one fell swoop across the enterprise. Problems ensued in order processing and shipping such that Hershey's warehouses piled up with undelivered Kisses, Jolly Ranchers, and peanut butter cups, while store shelves were packed with competitor products. Hershey's missed the entire Halloween season— causing sales to drop by 12% in the third quarter, earnings by 18%, and stock prices by 35%. Hershey's was not alone in its ERP implementation problems—Nestle, Whirlpool, Dow Chemical, Boeing, Dell, Nike, and others followed suit.
Three years later, Hershey's ...