Question: 1. In what ways do independent-demand inventories differ from dependent-demand inventories?
2. Why is demand history irrelevant for the management of raw-materials and work-in-process inventories?
3. With regard to inventory management, discuss the difference between a replenishment philosophy and a requirements philosophy.
4. Can the ABC principle be applied to manufacturing component inventories? Discuss.
5. How much safety stock should be carried in an MRP system? What is the role of safety stock in MRP systems? Where should safety stock be carried?