Question

Which of the following statements related to ERP support for horizontal information flows in the OE/S process is false?

1) Once the sales order department releases the order to credit approval, the document would be automatically routed electronically to the credit department and queued for their approval
2) Once the shipping department releases the shipment, the information would be entered into the ERP system at the shipping location to record the order as shipped.
3) An ERP system requires the business to change the information flows of the business process.
4) The sales order department's response to the customer would be automatically triggered by the ERP system.

Answer 1

Statement 3) An ERP system requires the business to change the information flows of the business process is false.

Step-by-step explanation:

The false statement related to ERP support for horizontal information flows in the OE/S process is statement 3) An ERP system requires the business to change the information flows of the business process.

ERP systems are designed to integrate and automate existing business processes, not require businesses to change their information flows. Instead, ERP systems provide the infrastructure to support and streamline existing information flows within the organization.

For example, statement 1) highlights how an ERP system can automatically route documents to the credit department for approval, and statement 2) shows how the ERP system can record shipments. Statement 4) also emphasizes how an ERP system can trigger automated responses to customers from the sales order department.