ERP provides the mechanism for supply chain members to share information so that scarce resources can be fully utilized to meet demand, while minimizing the bullwhip effect and supply chain inventories.

Question

Quizplus · Accepted Answer

ERP systems provide visibility and coordination across the supply chain, which helps to reduce the bullwhip effect (fluctuations in demand amplifying along the supply chain) and minimize excess inventory. By allowing supply chain members to share information and collaborate more effectively, ERP systems enable more efficient use of resources and better responsiveness to customer demand.

ERP Provides the Mechanism for Supply Chain Members to Share