An inventory in which item demand is related to the demand for other inventory items is called
A) dependent demand inventory.
B) economic order quantity.
C) materials requirement planning.
D) manufacturing resource planning.
E) correlational demand.

Question

Quizplus · Accepted Answer

Dependent demand inventory is when the demand for one inventory item is directly related to the demand for another inventory item. This type of inventory is typically used in manufacturing and production operations, where the demand for raw materials or components is dependent on the demand for finished goods.

An Inventory in Which Item Demand Is Related to the Demand