How independent demand inventories differ from the dependent demand inventories.

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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.

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Students have asked these similar questions

Explain in what ways do independent demand inventories differ from dependent demand inventories ?

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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.

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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.

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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.

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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.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 15.7 - Prob. 1OL Ch. 15 - Prob. 1DQ Ch. 15 - Prob. 2DQ Ch. 15 - With regard to inventory management, discuss the...Ch. 15 - Prob. 4DQ Ch. 15 - How much safety stock should be carried in a MRP...Ch. 15 - Prob. 6DQ Ch. 15 - Prob. 7DQ Ch. 15 - Prob. 8DQ Ch. 15 - Prob. 9DQ

How independent demand inventories differ from the dependent demand inventories.

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

Explanation of Solution

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