Asked by Emily Feasel on May 05, 2024

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Demand for a given item is said to be dependent if

A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods) .
D) there is a clearly identifiable parent.
E) the item has several children.

Dependent Demand

Demand for components or raw materials that is directly tied to the production schedules of finished goods.

Bill Of Material

An exhaustive catalog of the basic materials, elements, and guidelines for assembling, producing, or mending a product or service.

External Customer

A person or organization that receives a product or service from a business but is not part of the organization providing it.

  • Understand the concept of dependent and independent demand in inventory management.
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OS
Osman SuleymanMay 08, 2024
Final Answer :
D
Explanation :
A dependent demand item is one that is derived from a higher-level parent item, meaning it is not independently demanded but rather needed to fulfill the demand for the parent item. Therefore, dependent demand items have clearly identifiable parents, as referenced in choice D.