Dependent vs. Independent Demand, management homework help

Production managers forecast demand in order to make informed decisions on production priorities and to calibrate resource planning needs with expected production volumes (capacity planning). Demand forecasting affords the opportunity to influence demand by incentivized purchasing through modified price points, and increased advertising. It also allows passive, yet proactive action, as businesses can adjust production volumes to meet the forecasted demand.

For this activity, imagine that you are a production manager for a company that produces inflatable airbag assemblies for automobiles. The airbags are an important safety component required for all new vehicles sold in the United States. Airbag assemblies are purchased by automobile manufacturers and repair facilities throughout the country; roughly 60% of assemblies produced will go to new production and on large contracts. The remaining 40% are purchased in smaller quantities by repair facilities; these numbers fluctuate, based upon vehicular accidents.

The airbags consist of an: air bladder, initiator (starts the energetic explosive train), actuator (trigger), CO2 cartridge, sensor, and wiring harness. For this discussion activity, respond to the following:

Classify the following items as dependent or independent demand, and explain your reason(s):

• Airbag assemblies for new production
• Airbag assemblies for repair facilities
• Packaging for airbag assemblies

A minimum of one reference is required.