Dependent Demand

The demand of items characteristically include: a demand occurs individually and independently; the demand is set depending on a certain demand. The former is called Dependent Demand, while the latter is called Independent Demand. Dependent Demand is described as follows: an demand (like component, part, raw material) occurs depending on the demand required by the upper-level items. A demand of independent demand items occurs due to forecast or order, while when Dependent Demand is set, according to which a demand is obtained by one-by-one calculation (from component to part, from part to raw material, and etc.) The item to be dependently demanded is called Dependent Demand Item, and is to be handled as an item for MRP.

Related term: Demand Characteristics, Dependent Demand Item
Antonyms: Independent Demand