Patches' Pedal and Paddle Inc. hired you to assist with a new systems implementation at their...

 

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Patches' Pedal and Paddle Inc. hired you to assist with a new systems implementation at their national sporting goods chain of stores which is popular with outdoor recreational enthusiasts. The company sells and rents several products, such as racquets, boots, clothing, and shoes. Located in the company's Prince Albert head office, you will oversee the company's system efforts nationally. The company formed seven years ago and now has eleven stores nationally. With the rapid growth, management information systems have not kept pace. Patches' Pedal and Paddle Inc. plans to open eight new locations within the next six years. The company's president, Jimmy Smallheart, realizes they must expand the ERP systems if they wish to grow. About 78% of revenues in each store comes from equipment rentals. The current system is largely manual, with each store recording transactions in 3-ring binders. Head office has no idea as to what products generate revenue until results are posted monthly. Clerks often double-book rentals because they can't tell when items should be returned. The company uses customer drivers licence each time to record a rental. Patches' Pedal and Paddle Inc. cannot predict product demand, record late charges, or track usage of rented items that require maintenance. Management cannot calculate or reconcile physical rental inventory when needed to do any planning. Required: Would the company need two separate inventory systems here? Explain your answer. Patches' Pedal and Paddle Inc. hired you to assist with a new systems implementation at their national sporting goods chain of stores which is popular with outdoor recreational enthusiasts. The company sells and rents several products, such as racquets, boots, clothing, and shoes. Located in the company's Prince Albert head office, you will oversee the company's system efforts nationally. The company formed seven years ago and now has eleven stores nationally. With the rapid growth, management information systems have not kept pace. Patches' Pedal and Paddle Inc. plans to open eight new locations within the next six years. The company's president, Jimmy Smallheart, realizes they must expand the ERP systems if they wish to grow. About 78% of revenues in each store comes from equipment rentals. The current system is largely manual, with each store recording transactions in 3-ring binders. Head office has no idea as to what products generate revenue until results are posted monthly. Clerks often double-book rentals because they can't tell when items should be returned. The company uses customer drivers licence each time to record a rental. Patches' Pedal and Paddle Inc. cannot predict product demand, record late charges, or track usage of rented items that require maintenance. Management cannot calculate or reconcile physical rental inventory when needed to do any planning. Required: Would the company need two separate inventory systems here? Explain your answer.

Answer rating: 100% (QA)

In the scenario youve described for Patches Pedal and Paddle Inc implementing separate inventory systems might indeed be necessary to efficiently mana... View the full answer