ENTREPRENEURSHIP

Detailed explanation-1: -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.

Detailed explanation-2: -Example of dependent demand inventories are raw materials and work-in-process inventories used in manufacturing companies. These inventories should be managed by material requirement planning (MRP) or Just-in-time (JIT) system.

Detailed explanation-3: -Increases Visibility and Control: Inventory on demand helps businesses gain visibility into their inventory levels and improve control over their inventory management processes, reducing the risk of stock shortages and improving overall supply chain efficiency.