What are independent and dependent demands?
Demand is independent if it is unrelated to demand for any other product or service. Demand is dependent if it is derived from the demand for another product or service. Independent demand needs to be forecast; however, requirements for dependent demand are calculated from the independent items.
What are independent demand items?
Generally, Independent Demand Items, which have no direct relationship with other demands, are requested only according to the forecast. Such items include products, service parts, which are usually handled by the Sales division.
Should an MRP be used with dependent or independent demand items?
MRP is used for independent demand items. Feedback: It is used for dependent demand items (i.e., assembled goods). MRP applications are limited to manufacturing; services do not use it.
Which of these materials will have independent demand?
When we talk about independent demand, it generally arises from finished products. For example, we can refer to the demand for pizza as an independent one, while the demand for raw materials is dependent on demand, for example, flour. You would need other ingredients than flour to make a pizza.
Which is an example of an inventory item with dependent demand?
Take the example of a Car. The car as finished goods is an held produced and held in inventory as independent demand item, while the raw materials and components used in the manufacture of the Finished Goods – Car derives its demand from the demand for the Car and hence is characterized as dependant demand inventory.
What is dependent inventory?
If the demand for inventory of an item is dependant upon another item, such demands are categorized as dependant demand. Raw materials and component inventories are dependant upon the demand for Finished Goods and hence can be called as Dependant demand inventories.
Which of the following is an example of dependent demand?
Dependent demand, on the other hand, is demand for component parts or subassemblies. For example, this would be the microchips in the computer, the wheels on the bicycle, or the cheese on the pizza.
What is dependent and independent demand provide examples of dependent and independent demand?
Independent demand is demand for a finished product, such as a computer, a bicycle, or a pizza. Dependent demand, on the other hand, is demand for component parts or subassemblies. For example, this would be the microchips in the computer, the wheels on the bicycle, or the cheese on the pizza.
What is dependent inventory model requirements?
Specifications or bill of material (materials and parts required to make the product) Inventory availability (what is in stock) Purchase orders outstanding (what is on order, also called expected receipts) Lead times (how long it takes to get various components)