Analyzing Moore\`s state & Necessity of DPS(영문)

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Analyzing Moore\`s state & Necessity of DPS(영문)에 대한 자료입니다.
목차

1. Intro

2. Reasons about conclusion.

2.1. Necessity of DPS

2.2. Analyzing accounting books & explaining factors about DPS

2.2.1. Moore is sandwiched!

2.2.2. Necessity of the perfect order

2.2.3. Strategy in this situation

3. Conclusion

본문내용
Analyzing Moore's state & Necessity of DPS



1. Intro

We recommend Linda Autore, the CEO of Moore Medical, Inc. to invest in a DPS(short for Demand Planning system) software instead of a CRM(short for Customer Relationship Management) software. In fact, both of them are necessary for Moore Medical, Inc. to take more profits. But investing in a DPS software is more urgent than investing in a CRM system. There is some reasons for this conclusion. From now, we will show you reasons for this decision.

2. Reasons about conclusion.

2.1. Necessity of DPS
The most urgent thing for Moore is to settle problems in DPS system.
In late 2000 Moore instituted a performance measurement system based around “the perfect order.” A perfect order had all of its items in stock, was shipped on time and damage free from the closest DC, and arrived at the customer's location damage free and on time. Andrew McAfee, "Moore Medical Coporation", Havard Business School Case, #9-601-142, 2003, p 5.
While in reality, 32% of the orders were not fulfilled the goal. Autore think that if Moore implements proactive demand planning, 84% of the unfulfilled orders can be solved.
However the ERP software from J.D. Edwards. was not enough to meet the expectations. The most serious problem Moore faced with its J.D. Edwards implementation was that the system proved to be passive and reactive to demand, rather than proactive in forecasting. Each item carried by Moore was initialized on the system with a minimum stocking level and an economic order quantity. Andrew McAfee, "Moore Medical Coporation", Havard Business School Case, #9-601-142, 2003, p 7.
With this ERP software, Moore cannot supply "the perfect order." This is the problem for Moore who should gain customers' trust to sell more products.
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