Question: CASE STUDY Although the new Enterprise Resource Planning (ERP) system at Alpha Omega Electronics (AOE) has enabled the company to slash its costs associated with

CASE STUDY

Although the new Enterprise Resource Planning (ERP) system at Alpha Omega Electronics (AOE) has enabled the company to slash its costs associated with purchasing and accounts payable, Linda Spurgeon, AOE's president, is convinced that additional improvements are needed. She is particularly concerned about issues recently raised by William, vice president of manufacturing for AOE. LeRoy is upset because several production runs were delayed because components that AOE's records indicated as being in stock actually were not on hand. Linda asked Elizabeth, the controller, and Brandt, vice president, of information systems, for some recommendation on how AOE's new ERP system could help solve these problems. Based on facts given in the above case study answer the following questions.

Romney, M. B., & Steinbart, P. J. (2003). Accounting information systems. Upper Saddle River, N.J: Prentice Hall.

17. What must be done to ensure that AOE's inventory records are current and accurate to avoid

unexpected components shortage?

18. Is it possible to reduce AOE's investment in material inventories?

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