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Distinguish between dependent and independent demand in a McDonald’s restaurant, in an integrated manufacturer of personal copiers, and in a pharmaceutical supply house.
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— Distinguish between dependent and independent demand in a McDonald’s restaurant, in an integrated manufacturer of personal copiers, and in a pharmaceutical supply house.
Response: Independent demand is the demand affected directly by consumer purchases. It is the demand for final products, products consumed by customers. Measuring level and uncertainty is the key to manage the independent demand successfully. Forecasting techniques are used to measure various characteristics of independent demand. Inventory management and related issues like safety stock, stocking points are crucial in managing the independent demand.
Dependent demand is the demand, which is affected by the demand for final products or independent demand. It is the demand for components/parts/items of final/end product. …
