Which of the following most closely describes dependent demand?
A)Demand generated by suppliers.
B)Sales forecasts.
C)Derived demand.
D)Demands placed on suppliers by their customers.
E)Net material requirements.

Question

Quizplus · Accepted Answer

Dependent demand is demand that is derived from or based on the demand for another item. It is often necessary to produce or assemble a product in order to meet the demand for a higher-level product. Thus, dependent demand is based on the production requirements of another item, rather than the direct demand from customers.

Which of the Following Most Closely Describes Dependent Demand