As CEO of Riverside Marine, Rachel Moore knows it is important to control costs and to respond quickly to changes in the highly competitive boat-building industry. When Gerbig Consulting proposes that Riverside Marine invest in an ERP system, she forms a team to evaluate the proposal: the plant engineer, the plant foreman, the systems specialist, the human resources director, the marketing director, and the management accountant.

a- $390,000 in software costs

b- $85,000 to customize the ERP software and load Riverside Marine's data into the new ERP system

c- $112,000 for employee training the team estimates that the ERP system should provide several benefits:

a- More efficient order processing should lead to savings of $185,000.

b- Streamlining the manufacturing process so that it maps into the ERP system will create savings of $255,000.

c- Integrating purchasing, production, marketing, and distribution into a single system will allow Riverside Marine to reduce inventories, saving $215,000.

d- Higher customer satisfaction should increase sales, which, in turn, should increase profits by$150,000.