Which among the following is the objective of the Enterprise Resource Planning system?

Solution (By Examveda Team)

The correct answer is Option A: Balance supply and demand.
Let's break down why:

Enterprise Resource Planning (ERP) systems are like the central nervous system of a business.
They aim to integrate all parts of the company into one big system so everyone's on the same page.

Option A: Balance supply and demand - This is a CORE objective of ERP.
Think of it like this: ERP helps predict how much of something you'll need (demand) and ensures you have enough to meet that need (supply).
It avoids shortages or having too much stock lying around. This ensures efficiency and cost savings.

Option B: Organise external management information - While ERP *can* touch on external info, its main focus is integrating *internal* operations.

Option C: Control the flow of dependent demand inventories - ERP does manage inventories, but it doesn't *just* control dependent demand.
Dependent demand means demand for something is linked to the demand for something else (like wheels needing to produce a car).
ERP covers ALL sorts of inventory.

Option D: Manage purchase order - ERP systems *do* manage purchase orders, but that's just one small part of what they do.
It's like saying the objective of a car is just to honk the horn!

Therefore, balancing supply and demand is the most overarching and fundamental objective of an ERP system.