How independent demand inventories differ from the dependent demand inventories.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 15, Problem 1DQ

Summary Introduction

To determine: How independent demand inventories differ from the dependent demand inventories.

Expert Solution & Answer

Explanation of Solution

In the case of independent demand inventories:

The planning is based on meeting customer requirements, as happens in a retail store.
The quantity to be ordered is based largely on past demand.
The priority of the plan for the inventory planning of various items is based on an ABC or Pareto analysis, which focuses on the more important items.
Normally, the ordering process is commenced when the inventory level reaches a predetermined ordering point.
It generally covers only finished goods.

The planning for dependent demand inventories is based:

On the requirements as determined by a master production schedule, which typically occurs in a manufacturing plant.
The quantity is based on the requirements of the succeeding process or operation.
The plan covers all the items and there is no question of ignoring less important items in terms of value.
It covers also raw materials and work-in-progress.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The following table contains figures on the annual usage and unit costs for a random sample of 12 items. Develop and A-B-C classification for these items: Item Name Annual Usage (No of Items) Unit Cost 1 500 TK 4300 2 3000 720 3 1900 500 4 1000 710 5 4500 250 6 2500 192 7 400 200 8 500 190 9 200 210 10 1000 35 11 3000 10 12 19000 3 Brown and Brown Electronics manufacture a line of digital audiotape (DAT) players. While there are differences among the various products, there are a number of common parts within each player. The bill materials showing the number of each item required, lead times and the current inventory on hand for the parts and components, follows: Demand of products A & B and demand of spares components are shown below: Item Demand on 5th week Demand on 7th Week On-Hand Lead Time (Weeks) A 700 ------ 30 1 B 1200 ------ 50…

Discuss ways (at least 3) in which a company can reduce the need for inventories?

why should inventories be controlled?

Answer 2

Question

Chapter 15, Problem 1DQ

Summary Introduction

To determine: How independent demand inventories differ from the dependent demand inventories.

Expert Solution & Answer

Explanation of Solution

In the case of independent demand inventories:

The planning is based on meeting customer requirements, as happens in a retail store.
The quantity to be ordered is based largely on past demand.
The priority of the plan for the inventory planning of various items is based on an ABC or Pareto analysis, which focuses on the more important items.
Normally, the ordering process is commenced when the inventory level reaches a predetermined ordering point.
It generally covers only finished goods.

The planning for dependent demand inventories is based:

On the requirements as determined by a master production schedule, which typically occurs in a manufacturing plant.
The quantity is based on the requirements of the succeeding process or operation.
The plan covers all the items and there is no question of ignoring less important items in terms of value.
It covers also raw materials and work-in-progress.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 15, Problem 1DQ

Summary Introduction

To determine: How independent demand inventories differ from the dependent demand inventories.

Expert Solution & Answer

Explanation of Solution

In the case of independent demand inventories:

The planning is based on meeting customer requirements, as happens in a retail store.
The quantity to be ordered is based largely on past demand.
The priority of the plan for the inventory planning of various items is based on an ABC or Pareto analysis, which focuses on the more important items.
Normally, the ordering process is commenced when the inventory level reaches a predetermined ordering point.
It generally covers only finished goods.

The planning for dependent demand inventories is based:

On the requirements as determined by a master production schedule, which typically occurs in a manufacturing plant.
The quantity is based on the requirements of the succeeding process or operation.
The plan covers all the items and there is no question of ignoring less important items in terms of value.
It covers also raw materials and work-in-progress.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 15, Problem 1DQ

Summary Introduction

To determine: How independent demand inventories differ from the dependent demand inventories.

Expert Solution & Answer

Explanation of Solution

In the case of independent demand inventories:

The planning is based on meeting customer requirements, as happens in a retail store.
The quantity to be ordered is based largely on past demand.
The priority of the plan for the inventory planning of various items is based on an ABC or Pareto analysis, which focuses on the more important items.
Normally, the ordering process is commenced when the inventory level reaches a predetermined ordering point.
It generally covers only finished goods.

The planning for dependent demand inventories is based:

On the requirements as determined by a master production schedule, which typically occurs in a manufacturing plant.
The quantity is based on the requirements of the succeeding process or operation.
The plan covers all the items and there is no question of ignoring less important items in terms of value.
It covers also raw materials and work-in-progress.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 1DQ

Summary Introduction

To determine: How independent demand inventories differ from the dependent demand inventories.

Expert Solution & Answer

Explanation of Solution

In the case of independent demand inventories:

The planning is based on meeting customer requirements, as happens in a retail store.
The quantity to be ordered is based largely on past demand.
The priority of the plan for the inventory planning of various items is based on an ABC or Pareto analysis, which focuses on the more important items.
Normally, the ordering process is commenced when the inventory level reaches a predetermined ordering point.
It generally covers only finished goods.

The planning for dependent demand inventories is based:

On the requirements as determined by a master production schedule, which typically occurs in a manufacturing plant.
The quantity is based on the requirements of the succeeding process or operation.
The plan covers all the items and there is no question of ignoring less important items in terms of value.
It covers also raw materials and work-in-progress.

Answer 6

Chapter 15, Problem 1DQ

Summary Introduction

To determine: How independent demand inventories differ from the dependent demand inventories.

Expert Solution & Answer

Explanation of Solution

In the case of independent demand inventories:

The planning is based on meeting customer requirements, as happens in a retail store.
The quantity to be ordered is based largely on past demand.
The priority of the plan for the inventory planning of various items is based on an ABC or Pareto analysis, which focuses on the more important items.
Normally, the ordering process is commenced when the inventory level reaches a predetermined ordering point.
It generally covers only finished goods.

The planning for dependent demand inventories is based:

On the requirements as determined by a master production schedule, which typically occurs in a manufacturing plant.
The quantity is based on the requirements of the succeeding process or operation.
The plan covers all the items and there is no question of ignoring less important items in terms of value.
It covers also raw materials and work-in-progress.

Answer 7

Chapter 15, Problem 1DQ

Summary Introduction

To determine: How independent demand inventories differ from the dependent demand inventories.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the case of independent demand inventories:

The planning is based on meeting customer requirements, as happens in a retail store.
The quantity to be ordered is based largely on past demand.
The priority of the plan for the inventory planning of various items is based on an ABC or Pareto analysis, which focuses on the more important items.
Normally, the ordering process is commenced when the inventory level reaches a predetermined ordering point.
It generally covers only finished goods.

The planning for dependent demand inventories is based:

On the requirements as determined by a master production schedule, which typically occurs in a manufacturing plant.
The quantity is based on the requirements of the succeeding process or operation.
The plan covers all the items and there is no question of ignoring less important items in terms of value.
It covers also raw materials and work-in-progress.