Question

Contrast dependent and independent demand, and trace the development of material requirements planning (MRP)

Answer 1

Dependent and an independent demand have the following differences:-

DEPENDENT

These demands are generally for product required for subassembly.

Production depends upon the materials its made up of.

Limited by the demand of the raw material to be able to meet due dates and schedules.

INDEPENDENT

These demands are generally for finished products and goods.

Production is not dependant on other product or service.

Can have a schedule due to. No requirement constraints.

MRP

MRP or material requirement is basically an information system which allows a company to translate the master schedule into subparts, sub-assemblies and other required parts. Using MRP a company can determine what product is needed, how much of the product is needed and when the product is needed which allows the company to create an essential plan of action to deal with the situations as they arise. MRP developed from common database management system which was in earliest forms a bill of material process. Now it is used to centralize the process of business information and decision making.