MANAGEMENT

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: -Improved demand forecasting improves your supply chain management by looking ahead to ensure the right amount of stock. Additionally, it can decrease the amount of manual labor that goes into inventory and supply chain management.

Detailed explanation-3: -Independent demand is the demand for a finished good, such as a car, while dependent demand is the demand for a component part of a finished good, such as the tires on a car. Dependent demand is derived from the demand for a finished good.

Detailed explanation-4: -MRP converts a production schedule for end items that experience independent demand into known requirements for “lower level” items in order to determine production and purchase schedules.

Detailed explanation-5: -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.