Dependent demand inventory levels are usually managed by calculations using calculus-driven, cost-minimizing models.

Question

Quizplus · Accepted Answer

Dependent demand inventory levels are usually managed through material requirements planning (MRP) systems. These systems use information about the demand for finished goods to calculate the necessary quantities of raw materials, components, and assemblies required to meet that demand. While calculus may be used in some aspects of these systems, they are not typically driven by cost-minimizing models.

Dependent Demand Inventory Levels Are Usually Managed by Calculations Using