Dependent demand is subject to market forces and often exhibits a predictable demand pattern.

Question

Quizplus · Accepted Answer

Dependent demand is actually based on the demand for another product, such as raw materials or components, and is therefore not subject to market forces. Its demand pattern can be predicted to some extent based on the demand for the final product it contributes to, but it can also be affected by factors such as lead time, ordering policies, and production schedules.

Dependent Demand Is Subject to Market Forces and Often Exhibits