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Independent- demand and dependent-demand Independent-demand：The demand for an item is not directly dependent upon the demand for any other item that is being produced Dependent-demand：The demand for an item is directly dependent upon the demand for another item that is being produced 2．JIT purchasing (1) Profile of JIT purchasing JIT purchasing system receives frequent receipts of material from suppliers to meet immediate requirements (2) The following features define a JIT purchasing system ①A commitment to 0 defects by buyer seller ②Frequent shipment of small lot sizes according to strict quality delivery performance standards ③Closer, even collaborative, buyer-seller relationship ④Stable production schedules sent to suppliers on a regular basis ⑤Extensive sharing of electronic info btw supply chain members (3) Key points of implementation of JIT purchasing ①Not tolerate high stock level, less-than-perfect quality ②It is not a one-time effort but rather a continuous improvement process ③Cultural and personnel mind-set changes ④Most important, JIT purchasing does not mean pushing stock back to supplier, but rather requires cooperation, coordination and info sharing to eliminate stock across the supply chain (4) JIT purchasing barriers ①Dispersed supply base The greater the distance btw buyer and seller, the greater the variability around delivery times ②Historical buyer-seller relationships JIT system requires mutual trust and respect ③Number of suppliers ④Supplier quality performance A total commitment to product and delivery quality is prerequisite for a successful JIT system 3． Bill of material （1） Profile of BOM A list of the components, their description, their relationship to one another, and the quantity of each required to make one unit of a product （2) Low-level coding ╳ The item is coded at the lowest level at which it occurs Low-level coding is a convention to allow easy computing of the requirement of an item When BOM has thousands of items or wh