# 12.3 Deterministic Determination of Dependent Demand

## Course section 12.3: Subsections and their intended learning outcomes

• ##### 12.3 Deterministic Determination of Dependent Demand

Intended learning outcomes: Describe characteristics of discontinuous dependent demand. Explain material requirements planning (MRP) and planned orders. Disclose the determination of the timing of dependent demand and the load of a planned order.

• ##### 12.3.1 Characteristics of Discontinuous Dependent Demand

Intended learning outcomes: Describe the principle of lumpy dependent demand due to batch sizes at higher structure levels. Differentiate between two techniques for inventory management of components with lumpy demand.

• ##### 12.3.2 The Material Requirements Planning (MRP) Technique

Intended learning outcomes: Disclose a schematic representation of the MRP technique. Explain the determination of net requirements and batch sizes, using an example.

• ##### 12.3.2b Comparing the Effects of MRP and Order Point

Intended learning outcomes: Disclose the possible benefit of the net change MRP technique. Evaluate the effects of the MRP technique compared to the order-point technique.

• ##### 12.3.3 Determining the Timing of Dependent Demand and the Load of a Planned Order

Intended learning outcomes: Differentiate between mean lead time calculation and detailed planning calculation of the timing of dependent demands.

## Course 12: Sections and their intended learning outcomes

• ##### Course 12 – Deterministic Materials Management

Intended learning outcomes: Produce an overview on demand and available inventory along the time axis. Describe deterministic determination of independent demand. Explain in detail the deterministic determination of dependent demand (Material Requirements Planning, MRP). Differentiate various lot sizing techniques. Disclose how to analyze the results of the MRP.

• ##### 12.1 Demand and Available Inventory along the Time Axis

Intended learning outcomes: Explain the projected available inventory and its calculation. Describe scheduling and cumulative projected available inventory calculation. Produce an overview on operating curves for stock on hand.

• ##### 12.2 Deterministic Determination of Independent Demand

Intended learning outcomes: Present the customer order and distribution requirements planning (DRP). Disclose the consumption of the forecast by actual demand.

• ##### 12.3 Deterministic Determination of Dependent Demand

Intended learning outcomes: Describe characteristics of discontinuous dependent demand. Explain material requirements planning (MRP) and planned orders. Disclose the determination of the timing of dependent demand and the load of a planned order.

• ##### 12.4 Batch Sizing, or Lot Sizing

Intended learning outcomes: Explain combining net requirements into batches. Differentiate between different batch-sizing policies.

• ##### 12.5 Analyzing the Results of Material Requirements Planning (MRP)

Intended learning outcomes: Present projected available inventory and pegging. Produce an overview on action messages.

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• ##### 12.8 Scenarios and Exercises

Intended learning outcomes: Calculate projected available inventory. Determine net requirements and planned release using the MRP technique. Differentiate between order point technique and MRP technique.

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