ENTREPRENEURIAL OPERATIONS
PRODUCTION PLANNING AND CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Independent Demand
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Dependent Demand
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Either A or B
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None of the above
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Detailed explanation-1: -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.
Detailed explanation-2: -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.
Detailed explanation-3: -Sources of demand typically include consumer preferences and prices of substitutes and complimentary products. Preferences mean that a particular product will have higher demand than another. Substitute products can create demand when the price of a particular product goes up.