* Break-even Calculator
* Online Customer Lifetime Value Calculator (from Harvard Business School)
* Hong Kong Yellow Pages Online Map
* HSBC Mortgage Planner
Q.2 Next, try out the different modules within the
OpenBravo ERP demo. After you've familiarized yourself with these tools, identify which module can be used to handle each step within the Order-to-Cash business process below:
* Accept/Enter Order
* Order Acknowledgement
* Purchase Materials
* Receive Materials
* Production
* Packing
* Shipping
* Invoicing and Collection
Q.3 Which departments need to coordinate from start to finish of the Order-to-Cash business process ? Describe how the ERP software makes their work easier. Also explain why ERP software can serve as the foundation or platform for decision support systems.
Break-even analysis aims to find out the point
at which your product stops costing you money
to produce and sell, and starts to generate a profit for your company
Q.1 Break even analysis
Break even analysis depends on the following variables:
1. The fixed production costs for a product.
2. The variable production costs for a product.
3. The product's unit price.
4. The product's expected unit sales [sometimes called projected sales.]
One of the example is to calculate at which sales volume the variable and fixed costs of producing your product will be recovered. Another example is to look at the break-even point at which your product stops costing you money to produce and sell, and starts to generate a profit for your company.
I recommend the senior management to make the decision making. It is because if there is something go wrong in the forecasting, the business would be facing bankruptcy.
Question 3 Answer
Sales and Marketing, Accounting and Finance, and Human Resources department need to coordinate from start to finish of the Order-to-Cash business process.
ERP software allows a company to automate and integrate the majority of its business processes. Secondly, it shares common data and practices across the enterprise. Thirdly, it allows the same data to be used by multiple functions and business processes. Finally, it produces and accesses information in a real-time environment.
You have given these examples of decision-making using the break-even calculator :
回覆刪除"One of the example is to calculate at which sales volume the variable and fixed costs of producing your product will be recovered."
This is only a calculation that can be made using the model. You should also describe a decision which can be made after the sales volume at which the company breaks even has been determined. For example, after the company has calculated that they need to sell 250,000 hamburgers before breaking even, what decision can they make regarding equipment, loans, no. of employees, length of operating hours ?
"Another example is to look at the break-even point at which your product stops costing you money to produce and sell, and starts to generate a profit for your company."
This sounds similar to the previous example. You may improve this by looking at the problem from another point of view, for example, after knowing that they need to wait 18 months before breaking even, the company may decide to cut certain costs in order to break even earlier than 18 months. Which costs may they want to cut ?
Hope this helps !
You can also add that the Manufacturing/Production and Shipping/Warehouse department may be involved in the Order-to-Cash business process.
回覆刪除What are some modules in the OpenBravo ERP software that can be used in the steps within the Order-to-Cash process ?