Abstract

Computer based planning is definitely not for all firms. In fact, experience indicates that the probability of successful implementation of these systems can often be predicted in advance by examining certain organizational and environmental factors. The following factors should be considered by management in evaluating the appropriateness and timing of installing a computer based planning system. The cost of a computer based system does not increase in proportion to the size of the organizational unit. A manufacturing operation with annual sales of less than ten million dollars should sharply question the desirability of the investment. In an operation involving over fifty million dollars, there is usually no problem of justification, diversity, a widely diversified company, with many unrelated activities, must evaluate economics of such systems based on the size of the individual units, computer based planning systems are normally highly useful in a flow type of operation such as foods, forest products, or metals. Job shops or one of a kind activities are much more difficult.