Question:
(a) With reference to examples you are familiar with, explain the terms dependent demand and independent demand.
(b) Materials requirement planning is a technique used in the planning of ordering of materials and components in order to meet demand of customers. Explain if it is an example of dependent or independent demand.
(c) Exotic furniture Ltd has received firm orders for the month of December 2008 for tables. A table consists of one top and one leg assembly. The leg assembly consists of four legs, two short rails and two long rails. The demand are 200 tables for week 4, 150 for week 5 and 100 for week 6. The present stocks are evaluated as 50 tables, 50 tops, 100 leg assembly, 150 legs and 50 short rails. Scheduled receipts are 50 tops in week 2 and 100 legs in week 2.
Planned lead times in weeks are assemble table : 1 week, finish leg assembly : 1 Week, purchase legs : 1 week, purchase short rails : 1 week, purchase long rails 1 week and purchase top : 2 weeks. (Assume that all figures occur at the beginning of the week )
(i) Analyse the product graphically showing the different levels and components.
(ii) Calculate the net requirements and planned order releases for each component, needed to meet the demand. Present your results in tabular form.