Discussion Board Reply
Describe the two approaches to order management. How are they different? How are they related?
One approach of order management involves the customer ordering for the product and paying for it after it is delivered (Stadtler, 2015). The other approach entails a situation where the customer places an order and pays for the item before immediately. The two approaches are different in that in the former approach the seller focuses on customer service up to the time the item gets to them. However, in the second approach, the seller stops focusing on customer service once they receive the payment for the product. However, the two approaches are also related in that the satisfaction of customers is important. The seller has to ensure that clients are happy for them to continue doing business together.
independent and dependent demand
What is the difference between independent and dependent demand items? Why is this distinction important to inventory managers?
Dependent demand items include those that are directly related to or are caused by the demand for other inventory items (Saha & Goyal, 2015). For instance, a buyer may want to buy a computer. The computer will require a modem for internet connection. In this case, the modem is a dependent demand item. On the other hand, an independent demand item entails one that is not related to another inventory item. For example, a person may want to purchase a computer and a smartphone. Each item is purchased on its own. Therefore, they are independent demand items. The distinction is important for inventory managers to enable them to make suitable forecasts for demand and sale of the products they have. In essence, the managers need to lay down proper forecasts regarding the independent items, which in turn determine the forecast for the independent ones. The distinction also helps the inventory managers to guide the rate of production of the respective items. The demand for products determines the rate of production.
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