1 A In MRP what is the difference between independent and de

1)   A:   In MRP, what is the difference between independent and dependent demand?


      B: If your company makes two products using the same resources, what factors lead to the case where it is not the most profitable to produce more of the most profitable item per unit?

      C: What is the key difference in the modeling assumptions between EOQ and the Wagner-Whitin models? What is the key difference in modeling assumptions between the EOQ and continuous review (Q,r) models?

Solution

Independent demand is the demand for finished product demand. i.e Demand for bicycle , car etc

Dependent demand is the demand for subassemblies

When company makes two product , the factor that lead to less profitabilty is \" Learning curve\"

The key difference between Wagner-Whitin and the EOQ assumptions is that Wagner-Whitin assumes non-constant (although still deterministic) demand.

The key difference between EOQ and (Q,r) is that demand is stochastic in (Q,r) but deterministic in EOQ. The base stock model also has stochastic demand, but unlike the (Q,r) model, it assumes that replenishment lot sizes are always equal to one