operations management, assignment help

IMP (answer disscussion and the disscussion comments 1&2 and send me individual files for each one of them please)


# disscussion

Describe the difference between independent and dependent demand and give an example of each.

Example –

For a pizza restaurant such as Domino’s or Pizza Hut customers versus pepperoni.

Find a single recent article supporting the role of demand in price. Do you support the author’s opinion. Why or why not?


disscusion commentsbelow #1? IMP (your answer just 3 lines for each of them)


Independent demand is the demand not directly dependent to the demand of other products, while dependent demand relay on the demand for other products. For inventory parts, the demand for independent components is unknown, since it is calculated from finished goods’ amount, you need to forecast the amount for finished goods at first. But for dependent demand, it should be known, since its need is based on other products.

One of the example for dependent demand will come from my own working experience. My company produce one kind of wolfberry jelly. For our customers, the Wolfberry jelly is the independent demand. While the inventory for the jelly, like the wolfberry, the water, the package for the products are all dependent demand.

I find a single recent article supporting the role of demand in price. It says, independent demand is demand for a finished product, such as a computer, a bicycle, or a pizza. Dependent demand, on the other hand, is demand for component parts or subassemblies. For example, this would be the microchips in the computer, the wheels on the bicycle, or the cheese on the pizza (Nada Sanders, 2014) I totally agree with this. It describe the difference between two demands in very vivid way. But for finished goods level, sometimes it can be confusing. For some customers, they like to eat ice-cream with jelly bear, so for them, jelly bear and ice-cream can be the dependent demand for each other. But for other customers, they don’t want to eat anything else while they eat ice-cream, then for those people, ice-cream would be their independent demand.


The difference between independent and dependent demand is simply, how it is sold and how it associates to other items. An independent demand is where an item is bought and sold independently of other items (Li). A stand-alone, finished product if you will. An example of this might be a finished good such as a vehicle or office supplies (Russell, Roberta, and Taylor III Pg. 562). A dependent demand is where an item sold is influenced by the demand for some other product. These are often what are referred to as substitutes and complements (Li). An example given of this concept are the tires and engine responsible for the movement of the vehicle (Russell, Roberta, and Taylor III Pg. 562). The dependent demand here is that the tires are dependent on vehicle sales.

In an article given by Yale University, authors Che, Sudhir, and Seetharaman deduce that while both firms and manufacturers both have a forward-looking view, the firms tend to have a short-term view on pricing for the future than do manufacturers as manufacturers tend to control the pricing demand of products (2006). In this case, I would agree. I believe the dependent demand holds a greater control of price due to the amount of supply of customers whereas the independent demand, the firm, has a lesser variety of manufacturing options. In other words, the manufacturer has a greater number of customers than the firm has suppliers. While the firm can switch suppliers, there are less of them to choose from versus the manufacturer having a greater number of customers to sell to (more independent demand, lesser dependent demand).

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