Discussion Help (WK7) - The differences between the...

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Week 7 Help CH17, Pg 578, Q1 Sylvia, Good post, I just have this to add to yours: The differences between the dependant demand in Mc Donald’s, manufacturer of personal copiers and in a pharmaceutical company is that in case of Mc Donald’s it is easy to find the dependant demand as it completely related o the independent demand and it is for raw materials, but in case of personal copiers and a pharmaceutical company it is essential that the de- pendant demand be forecasted as an estimate itself and cannot be purely based on the independent demand. The differences between the independent demand in Mc Donald’s, manufacturer of personal copiers and in a pharmaceutical
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Unformatted text preview: The differences between the independent demand in Mc Donald’s, manufacturer of personal copiers and in a pharmaceutical company is that in case of Mc Donald’s the independent demand is accurately known and then inventorying takes place where as in case of personal copiers and a pharmaceutical company, as estimation of demand is very difficult due to high levels of variance, inventorying is based on experience and assumptions. Reference: Jacobs, F., Chase, R. & Aquilano, N. (2009) Operations & Supply Management. Chapter 17, Pages 549-550 & 574...
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