ECON 1540 Lecture Notes - Normal Distribution, Carrying Cost, Ferrari P
12 Apr 2014
School
Department
Course
Professor
Document Summary
Review and discussion questions: distinguish between dependent and independent demand in a mcdonald"s, in an integrated manufacturer of personal copiers, and in a pharmaceutical supply house. The key to the answer here is to consider what must be forecasted (independent demand), and, given the forecast, what demands are thereby created for items to meet the forecasts (dependent demand). In a mcdonald"s, independent demand is the demand for various items offered for sale big macs, fries, etc. The demand for egg mcmuffins, for example, needs to be forecasted. Given the forecast, then, the demand for the number of eggs, cheese, canadian bacon, muffins, and containers can then be computed based on the amount needed for each egg mcmuffin. The manufacturer of copiers is integrated, i. e. , the parts, components, etc. are produced internally. The demand for the number of copiers is independent (must be forecasted).
