Which of the following relationships shows dependent demand inventory?
A) A business purchases a new car when the old one wears out.
B) A tire maker buys cleaning supplies.
C) An automaker purchases four tires for each car they produce.
D) A winemaker buys grapes from farmers in the Columbia Valley.

Question

Quizplus · Accepted Answer

Dependent demand inventory is directly tied to the demand for another product or service. In this case, an automaker purchases tires for the cars they produce, so the demand for tires is dependent on the number of cars produced.

Which of the Following Relationships Shows Dependent Demand Inventory