Dependent Demand
Student Tip
“Dependent demand” means the demand for one item is related to the demand for another item.
Wheeled Coach, the subject of the Global Company Profile, and many other firms have found important benefits in material requirements planning (MRP). These benefits include (1) better response to customer orders as the result of improved adherence to schedules, (2) faster response to market changes, (3) improved utilization of facilities and labor, and (4) reduced inventory levels. Better response to customer orders and to the market wins orders and market share. Better utilization of facilities and labor yields higher productivity ...
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