Fitter Snacker is a small energy bar manufacturing company. Its main business is to produce and sell these bars to other companies. It is seeing growth in sales of its two products, NRG-A and NRG-B bars. NRG-A bar is known for its high-end energy, while NRG-B bars are known for its body-building protein. The company's sales have recently been hit by a growing demand for low-carb bars. Customer preference has changed towards NRG-A and NRG-B bars and therefore they want a product with a low carbohydrate content. Fitter Snacker decides to put a new low-carb bar on the market because it intends to remain in competition even if it does not experience any loss of sales. To produce this new product called NRG-C, which is a healthy low carb snack bar; that is, a bar with few carbohydrates and more proteins, changes to be made to the materials used in production. Changes such as;1. Replacing half of the oat content with soy protein2. Replacing Honey with Splenda and Canola OilThese changes, however, suggest the need for changes to traditional methods of producing NRG-A and NRG-B bars. Fitter Snacker will need to find a new supplier of soy protein and Splenda, make changes to the SAP system to include the new product, and the activities involved in production and sales. All of these changes require planning, purchasing, scheduling, manufacturing, as well as shipping to retailers.MASTER DATATo create a new master data system to support the production and sales of NRG-C bars:1. Material Master We need to create material master data for the different materials needed. The material master for the new product requires additional materials that are not already present in the system and which are:1. Raw… middle of paper… the need for this human interaction with the system is what makes it vulnerable to errors and redundancy and the need to get it right is critical. Then the production plan is created based on the sales order and this is shared with purchasing so that any unavailable material can be ordered. This shows how MRP links production with purchasing and accounting. Using these information links and sharing them properly in ERP can result in significant cost savings because companies are starting to see their SCM as part of a larger process than just customers and suppliers. So, with the great help of SAP ERP system, we have NRG- C Bars on the market for sale. So it is safe to say that SAP, if properly installed, implemented and properly integrated with data, can facilitate users of the system in their daily business processes and also help them in making strategic business decisions.
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