Dependent and independent demand in inventory

1-91 independent and dependent demand 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 a given inventory item may have both dependent and independent demand at any given time.

An inventory of an item is said to be falling into the category of independent demand when the demand for such an item is not dependent upon the demand for another item finished goods items, which are ordered by external customers or manufactured for stock and sale, are called independent demand items.

Inventory items can be divided into two main types: independent demand and dependent demand items the systems for managing these two types if inventory differ significantly an item has independent demand when we can’t control it or tie it directly to another item’s demand, while items has dependent demand when the demand for an item is controlled directly, or tied to the production of something else.

Start studying mgt 301- chapter 7: dependent demand inventory learn vocabulary, terms, and more with flashcards, games, and other study tools define independent demand requirements for dependent demand items are derived from the production schedule for their parents (the items that are assembled from component parts).

Dependent and independent demand in inventory

Two forms of demand •independent demand (this chapter) • finished goods, spare parts, • based on market demand • requires forecasting • managed using ‘replenishment philosophy’, ie reorder when reach a pre-specified level.

An inventory of an item is said to be falling into the category of independent demand when the demand for such an item is not dependant upon the demand for another item finished goods items, which are ordered by external customers or manufactured for stock and sale, are called independent demand items.

dependent and independent demand in inventory 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.
Dependent and independent demand in inventory
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