Concept explainers
Contrast independent and dependent demand.
To determine: The contrast between independent and dependent demand.
Introduction: ERP refers to Enterprise resource planning. It helps the firm or the manufacturer to manage and incorporate the important sections of their business effectively. Important sections refer to human recourse, inventory, purchasing, marketing, and planning.
Explanation of Solution
Contrast independent and dependent demand:
The finished good is an independent product, which has a uniform demand. Independent demand is random and unpredictable sometimes.
However, the component or raw material is dependent. The demand of the component is depend on the demand of the respective finished goods (parent item). The demand for the dependent product is not continuous and it can be derived from the demand of independent product.
Want to see more full solutions like this?
Chapter 12 Solutions
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
- assess each of the different methods organisation can use to measure demandarrow_forwardWhat is the effect of diminishing marginal utility on quantity demanded ?arrow_forwardCompetitive Dimensions include I. Delivery Reliability II. Location III. Brand IV. Quality V. Price Option I and III Option I and IV Option I, IV and V Option II and IVarrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning