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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Will’s Welded Widgets (WWW) makes its Q Model from components R, S, and T. Component R is made from 2 units of component X and 2 unit of component Y. Component T is made from 1 unit of component V and 2 units of component Z. Calculate the gross requirements for each of the components when the company plans to build 70 of its Q Model if you have these inventories: 70 units of component T and 110 units of component R, using the given information: Item Usage per Parent Q - R 2 S 2 T 1 X 2 Y 2 V 1 Z 2 Q R S T X Y V Z Put the answers down into the table: (If answer is zero, please enter 0, do not leave any fields blank.) Product Gross Requirements Q…

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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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.

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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.