ABSTRACT
The technique for planning dependent demand is material requirements planning (MRP). This is a generally applicable technique for all types of dependent demand. The essential feature of dependent demand is that it is calculated from the demand of the next item along the supply chain; the aim is to have stock when it is to be used and no stock the rest of the time. The structure of MRP makes it eminently useful within manufacturing, especially where there can be several levels of dependent demand in a product. The two main attributes of MRP, namely, 'time phasing' and 'structure', are now being applied in a wide variety of stocking situations outside manufacturing. Classic stock control deals with each item individually, independent of all others. The inventory control bill of materials usually consists of two levels, the same as a just-in-time manufacturing bill. The top level is the demand profile for the collection of stock items for the customer.
