BSOP 330 Week 4 Discussion Question 2 Inventory Models
This work of BSOP 330 Week 4 Discussion Question 2 Inventory Models shows the solutions to the following points:
Choose one of the inventory models (either from the independent demand section or the dependent demand section), and explain why that model works in certain situations and not in others. Do we really need this many different ways to count widgets? How do costs come into play in such planning decisions?
What is the difference between independent and dependent demand?
Inventory control models assume that demand for an item is either independent of or dependent on the demand for other items. For example, the demand for refrigerators is independent of the demand for toaster ovens. However, the demand for toaster oven components is dependent on the requirements of toaster ovens.