ITPEC IP October 2024 Question 82
Which of the following is a system that centrally manages the process from materials procurement to product sales, and aims for the optimization of supply?
Explanation
SCM (supply chain management) — the question describes a system that manages the whole flow from materials procurement to product sales.
SCM links the parties in the chain — suppliers, manufacturing, distribution and retail — and shares demand, inventory and order information among them. Managing the chain as one flow cuts total inventory and lead time and optimizes supply across the whole chain, not just inside one company.
Answer (d)
Why not others:
- •(a) ASP — an application service provider delivers application software over the network as a service; it is a way to supply software, not a supply-chain system
- •(b) CRM — manages customer information to build long-term customer relationships; it covers the customer side only
- •(c) ERP — integrates the core resources and functions (accounting, HR, production, sales) of one enterprise; it does not optimize the flow across partner companies from procurement to sales
Key rule: Procurement through sales across companies is SCM; one enterprise's resources in one integrated system is ERP; customer relationships are CRM.
Business Strategy Management · AI-written, may contain errors
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