Dependent and independent demand
One of the underlying assumptions from Chapter 12s discussion of EOQ, Production Run, and other models is that demand for inventory is independent. Yet, Chapter 14s similar presentation and discussion of MRP specified that MRP systems assume dependent demand.
The concepts of dependent and independent inventory systems are very important. However, their importance is somewhat buried by the quantitative aspects of the EOQ and MRP models.
To clarify the issue of whether inventory systems should be based on dependent or independent demand models, complete the group assignment (post) on this page and the individual assignment (post & response) on the next page.
Post
1. As a group, see if you can prepare a good, clear answer to the following question:
a. What is the main difference in planning an inventory system using assumptions of dependent and independent demand models?
b. Note: defining dependent and independent is not a sufficient answer. A good answer would address how the answers to the questions 1) What to order, and 2) How many to order, are answered by the operations manager.