Chapter 14 Rapid Review

Main Heading Review Material MyOMLab
Dependent Demand (p. 566)

Demand for items is dependent when the relationship between the items can be determined. For any product, all components of that product are dependent demand items.

  • Material requirements planning (MRP)—A dependent demand technique that uses a bill-of-material, inventory, expected receipts, and a master production schedule to determine material requirements.

Concept Questions: 1.1–1.4
Dependent Inventory Model Requirements (pp. 566571)

Dependent inventory models require that the operations manager know the: (1) Master production schedule; (2) Specifications or bill of material; (3) Inventory availability; (4) Purchase orders outstanding; and (5) Lead ...

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