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.
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Chapter 12 Solutions
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