The new enterprise resource planning (ERP) system at Al Rawahi has enabled the company to slash its costs associated with purchasing and accounts payable, Mr Abdul, Al Rawahi’s president, is convinced that additional improvements are needed. He is particularly concerned about issues recently raised by Abdali, vice president of manufacturing for Al Rawahi. Abdali is upset because several production runs were delayed at the Izki plant because components that Al Rawahi’s inventory records indicated as being in stock actually were not on hand. There were also delays at the Rustaq plant because suppliers either did not deliver components on time or delivered substandard products.

Abdul asked Ali, the controller, and, Al Rawahi’s vice president of information systems, for some recommendations on how Al Rawahi’s new ERP system could help solve these problems.

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

17. How could the information system provide better information to guide planning and production?

18. How could the problems at the Izki plant be avoided in the future? What can be done to minimize this threat?

Answer rating: 100% (QA)

17 The information ... View the full answer