Chapter 5.docx - Chapter 5 Questions 1 What are independent...

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Chapter 5 Questions 1. What are independent demand items? Items whose demand occurs independently of other items. Independent Demand Items are requested only according to the forecast. Such items include products, service parts, which are usually handled by the Sales division. The demand of such items occurs for each individual item from customers, and thus each item has no relationship with each other. What two basic ordering systems are used for these items? Order point system Periodic review system What are dependent demand items? Dependent Demand Item refers to the item whose demand is required by the one- by-one calculation base on the independent demand items such as products and service parts, and includes assemblies, subassemblies, processed parts, purchased parts, and raw materials. These items always have their upper-level items, and according to the demand of upper-level items, the requirements are calculated, by which the demanded quantity is set. What system should be used to order these items?
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