Please answer case study question #1. Please list two trade-offs and provide an explanation for it. Please explain in great detail. Thank you!

NETWORK AND SYSTEM DESIGN Case Study Boca Electronics, LLC Boca Electronics, a manufacturer of semiconductor com- (austomer counts would be updated in the sales department, ponents, was established in Houston, Texas, in 2002 after but not in accounting). Although this issue went largely spinning off from its parent company. Originally a branch of unnoticed during thriving periodh, the recent slowdown in Vissay Inc., Boca Electronics had a solid customer base and the economy revealed potential repercussions of the current strong sales with some major firms such as IBM, Compaq, and business operations, as Boca Electronics began to run short on Motorola Semiconductors included a wide array of products its cash flows. that were broken down according to their application and In the last month, one of Boca Electronics' largest cus- material. Some of their main products include microprocessors, tomers began requiring all its suppliers to integrate their mane- light-emitting diodes (LED), rectifiers, and suppressors. Boca facturing operations to improve the sharing of information and Electronics operated on a mainframe system that it inherited further improve its supply chain. This company had recently from its parent company and used additional stand-alonc implemented an ERP system from a major provider and was systems to perform many of its other business functions. For encouraging its suppliers to do the same. Suppliers had the the last four years the company had performed well financially option of implementing middleware software to integrate oper- so little concern had been given to the business operationsations. Whether suppliers chose to keep their current systems However, recent slowdowns in the economy and an increase and implement middleware, or implement an ERP system that in competition in the semiconductor industry had forced Boca would integrate with the company, they had one year to make Electronics to take another look at the way it operated its the changes to continue doing business with this customer business. Paul Andrews, the CIO at Boca Electronics, was well Ron Butler, the purchasing managers Boca Electronics, aware of the issues facing the company. He knew that some was responsible for ordering raw materials and ensuring that thing had to be done to improve communication and informa their delivery was on time and met production requirements tion sharing within the company, and the current mainframe Ron used his own forecasting software to determine purchas system was outdated and inefficient. He was also aware of the ing needs based on past sales. Although this worked most of constraints that Ron was facing in Purchasing and how much it the time, Ron often found himself scrambling to meet large cus was costing the company. With the new request from one of its tomer orders at the last minute and was forced to expedite a lo largest customers for further integration, the idea of implement- of orders to meet the production needs. Ron felt this was due ing an ERP system for Boca Electronics seemed like a viable largely to the lack of communication between his department solution to Paul. However, recent economic downturns and a and the sales force. Although he received production forecasts limited amount of capital made such a large capital outlay a and projected sales from the sales department, it occurred on risky investment for the company an irregular basis, and the forecasts would often change by the Case Question time he had placed orders to the suppliers. In addition, Ron had a difficult time synchronizing with suppliers and determining 1. Determine the trade-offs of implementing an ERP system factors such as lead times and product prices. He had previously in the company versus buying best-of-breed software and recommended a new software system that would integrate with using middlewareto integrate. suppliers of key components but the proposal was turned down 2. What are the potential impacts of such an implementation by senior management due to a "current lack of need for such on the company's suppliers and customers? an invest 3. If the company chose to stay with the system is currently Boca Electronics also faced issues regarding its cash flows. It took several weeks for the accounting department has, what are some potential consequences that can occur in the future? to process invoices and usually had to e-mail hack and forth with the sales manager to make multiple correction Because 4. Based on the listine nature of the company, the industry both departments used different systems to manage cute and the current caviroment, what would you recond accounts. Some of the data was redundant and inaccurate doing