What are dependent demand items?
Generally, Dependent Demand Item refers to the item whose demand is required by the one-by-one calculation base on the independent demand items such as products and service parts, and includes assemblies, subassemblies, processed parts, purchased parts, and raw materials. …
Is demand dependent on supply?
The precise number produced and consumed and the price at which this occurs depends on the interaction of the demand and supply of that product – demand being the number that consumers are wiling to purchase at each price, and supply being the number that producers are willing to produce at each price.
Which demand items need to be forecast?
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.
Which of the following most clearly describes dependent demand?
Option C-derived demand is closely described as dependent demand, resulting from the decision to build parent items.
Which of the following items is an MRP input?
The three major inputs of an MRP system are the master production schedule, the product structure records, and the inventory status records.
What are the independent and the dependent demand give an example?
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 the difference between independent and dependent demand?
Independent demand is demand originating outside the plant or production system, while dependent demand is demand for components. The bill of materials (BOM) specifies the relationship between the end product (independent demand) and the components (dependent demand).
What is an example of independent demand?
In an example of independent demand, a furniture company may sell products like couches, which are sold independently. People don’t need to buy anything else to use a couch, nor do they need to purchase a couch in order to use another item. By contrast, the company may also sell kitchen chairs,…
What is independent and dependent demand?
Customer demand, or independent demand, is the demand for the end product, while dependent demand is the manufacturer’s need to get parts to build the product. Customer demand typically dictates independent demand, while dependent demand is more internal.
What is dependent demand items?
An item has independent demand when we can’t control it or tie it directly to another item’s demand. An item has dependent demand when the demand for an item is controlled directly, or tied to the production of something else. Independent demand and dependent demand items require very different solutions.