1. Contrast independent and dependent demand.

Demand for end items are independent. In contrast, demand for components used to manufacture
end items depend on the demands for the end items. The distinctions between independent and
dependent demands are important in classifying inventory items and in developing systems to
manage items within each demand classication.
2. When is MRP appropriate?
MRP is especially suited to manufacturing settings where the demand of many of the
components and subassemblies depend on the demands of items that face external demands.
MRP systems were developed to cope better with dependent demand items
3. Briefly define or explain each of these terms.
b. Bill of Material: also known as the product Structure Records, contain information on every
item or assembly required to produce end items. Information on each item, such as part number,
description, quantity per assembly, next higher assembly, lead times, and quantity per end item,
must be available.
c. Inventory Records: One of the three primary inputs in MRP; includes information on the
status of each item by time period. One of the three primary inputs in MRP; includes information
on the status of each item by time period.
CASE: Promotional Novelties

Total Wheel Needed= 3,60,000

Wheel produced would be =3,00,000

Left for order is = 60,000

Answer 1.a.Hence 10set is needed to be ordered
Answer 1.b. This has to be done on 2nd week