At PlastiPharm, when a customer places an order, the system generates how many components are needed to make the product and then allocates what is in current inventory to fill that order. Why is it important for the system to know how many days of inventory are available?

• Knowing the levels of supplies available allows the company to know how much of its cash is tied up in inventory.
• Knowing what inventory is on hand makes it possible for the company to look at market dynamics and hold onto inventory if it can sell later at a higher price.
• Knowing the number of days of inventory available informs the company about how long it has to clear out components that are about to expire.
• Knowing how much inventory is available informs the company on whether it can meet customer demands and deadlines.

PlastiPharms ERP system has a quality management application that gathers information about non-conforming and deviant materials. On a daily basis, the application generates an investigative process report, which is then sent to different departments to review whether products using the materials can be fixed or need to be scrapped. On a weekly basis, the application generates another report that shares information about trending issues. For what purpose might the company use this weekly report? Please select the best explanation.

• Watching the trends helps the company determine which people will best adapt to using the ERP to make decisions.
• Identifying trending issues allows the company to see if there is a systemic problem with materials from a certain supplier or if process changes need to be made.
• Effectively managing the trends helps the company determine if it needs to improve its processes to meet its customers greatest needs at exactly the right price.
• Gathering information about trends allows the company to test the complexity of the ERP system.