Fitter Snacker Case Study Solution

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Fitter Snacker is a small manufacturing company of energy snack bars. Its main business is to manufacture and sell these snack bars to other companies. It’s being experiencing growth in the sale of its two product, NRG-A and NRG-B bars. The NRG-A bar is known for its high end energy while the NRG-B bars is known for its body building protein. Recently the company sales was hit with a growing demand for low-carb snack bars. Customer preference has changed towards the NRG-A and NRG-B bars and so they want a product with low-carbohydrates in it. Fitter Snacker decides to put a new low-carb bars into the market because of its plans to remain in competition even though it isn’t recording any lost in sales. To manufacture this new product called NRG-C which is a healthy low-carb snack bars; that is a bar with low carbohydrate and more protein, changes as to be made in the materials used in production. Changes like; 1. Replacing half of the oats content with soy protein 2. Replacing the honey with Splenda and canola oil These changes however prompts the need to make changes in the traditional ways of making NRG-A and NRG-B bars. Fitter Snacker will have to find new supplier of soy protein and Splenda, make changes in the SAP system to include the new product and the activities involved in the production and sale. All these changes require planning, purchasing, scheduling, producing, as well as shipments to retailers. MASTER DATA To create a new master data system to support the production and sale of NRG-C bars: 1. Material master We need to create material master data for the different materials that is needed. The material master for the new product requires additional material that is not already in the system and they are: 1. Raw ... ... middle of paper ... ... need for this one human interaction with the system is what makes it vulnerable to errors and redundancy and the need to get it right is paramount. So the production plan is created bases on the sales order and this is shared with purchasing so that any unavailable material can be ordered. This shows how the MRP links the production with purchasing as well as accounting. Using this information links and sharing properly in the ERP can result in significant cost savings because companies are beginning to see its SCM as part of a larger process than just customers and suppliers. So with the much help from SAP ERP system, we have NRG-C bars in the market for sale. So it’s safe to say SAP if properly installed, implemented and right data integrated can ease its system users in their day to day business process and also help them in taking strategic business decision.

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