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dependent and independent demands on the supply chain

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1) What is the difference between dependent and independent demands on the supply chain? What guidelines might be used to manage the demand for an organization's product?

2) Pick an organization and describe how it manages its inventory?

Answers do not have to be lengthy as long as they answer the questions. Thank you

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1) What is the difference between dependent and independent demands on the supply chain? What guidelines might be used to manage the demand for an organization's product?

Dependent demand is influenced by company decisions. For instance, the company decides to reduce its stock of certain items. Again a change in inventory policy can lead to a change in dependent demands. Similarly, changes in the production pattern can lead to changes in the dependent demand on the supply chain.

Independent demands on supply chain are affected by factors outside the company's decision. For instance, the availability or lack of availability of a certain critical raw material, change in government policy, forecasts of demand for the ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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