Q1. Prepare a process diagram that displays the steps that GBI (Global Bike, Inc., the company illustrated in the textbook) must execute in order to fill a customer order, based on the five assumptions listed below. Make certain to include the financial and material impacts of each step as illustrated in the chapter 9 (textbook by Magal and Word). 0. Rocky Mountain Bikes (A GBI customer located in the Western United States) has ordered 250 road helmets (RHMT 1000) from GBI.

Q1. Prepare a process diagram that displays the steps that GBI (Global Bike, Inc., the company illustrated in the textbook) must execute in order to fill a customer order, based on the five assumptions listed below. Make certain to include the financial and material impacts of each step as illustrated in the chapter 9 (textbook by Magal and Word).

0. Rocky Mountain Bikes (A GBI customer located in the Western United States) has ordered 250 road helmets (RHMT 1000) from GBI.

0. The San Diego plant has 50 road helmets valued at a moving average price of $25.13 each

0. The Miami plant has 400 road helmets valued at a moving average price of $25.25.

0. GBI has decided to move 100 road helmets from Miami to San Diego and to purchase 300 helmets from Spy Gear at $25.54 each.

0. GBI sells road helmets for $50 each.

Please study chapter 9 of the textbook and prepare your answer based on the similar examples discussed in the chapter.

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Q2. To answer this question you need to explore the online sources, and use your own experience (if any). A) Find out what it takes to implement the ERP software like SAP (the software you have been using for this course), in terms of costs, time, IT infrastructure, training, change management (changing business practices / processes) and migration (from existing systems). Examine what type of organizations can afford to implement this software – in terms of size, industry, context (like companies in turnaround situations, or with fragmented IT systems).

B) Do you recommend implementation of the ERP software, for the two companies, you worked on during the course ( Muesli Cereal plant – maximum 200 employees, and GBI). These companies could consider three alternatives:

1) In-house implementation of ERP software,

2) Use an ASP (third party Application Service Provider – not SAP) for the ERP application delivery, and

3) A few years ago, SAP started offering a ERP software called “Business by Design” as SAAS (Software As Service) for Small and Medium Size Enterprises (SMEs). It is basically, SAP software in “Cloud” for specific industries. The companies just need to have computers with internet connection. No need for any servers, software upgrades and maintenance. Configuration (customization) / implementation is done by SAP in consultation with the customer (for a one time fee ranging from $30,000 to $100,000). The license fee of $149 per month, per license (minimum 10 licenses). Explore the “Business by Design” information on the web and evaluate whether it will be a good choice.

Instead of “Business by Design”, you may also explore any other cloud based ERP software suitable for small and medium sized businesses (50 to 500 employees). Please provide the name of the software and its main features.

You should discuss both the risks and benefits of each alternative before providing your recommendation.