Question

4. In demand management, independent demand means: A. Products whose demand comes from independent distributors B. Products whose demand is determined by market conditions C. Demand that is independent of any known rules of demand and supply D. Demand that is related to the demand of another item E. Demand that cannot be forecasted or predicted 5. A paint store that places orders for different colors of paint from the same supplier for delivery at the same time should use a: A. Fix-time period inventory model B. Fix-order quantity inventory model C. Dependent demand inventory model D. ABC inventory system

Answer 1

Q4 : Products whose demand is determined by market conditions

The correct answer is option B. Independent demand relates to those products which are genrally used by end consumers. The demand is solely determined by the market conditions that is the price of the product and how much amount or quantity is needed by the customers. This demand is not dependent or in other words this is not related to demand of any other product

Q5 : Fix time period inventory model

The correct answer is option A. As the store places orers for different types of paint for delivery at the same time, it means that irrespective of what quantity is present on-hand for different colors, the store places the order at a fixed time interval. The on hand quantity of one color may be less and other color may be more. However the store places the order for all colors all at once so that it reaches at the same time. This is an example fo fix time period inventory model.