Dependent Demand Item

Thinking of an item from the standpoint of demand, there are two kinds of items: items whose demand occurs independently of other items, and the ones whose demand is set depending on other items. The former is called Independent Demand Item, while the latter is called Dependent Demand Item. Generally, Dependent Demand Item refers to the item whose demand is required by the one-by-one calculation base on the independent demand items such as products and service parts, and includes assemblies, subassemblies, processed parts, purchased parts, and raw materials. These items always have their upper-level items, and according to the demand of upper-level items, the requirements are calculated, by which the demanded quantity is set. Such dependent demand items except for the special cases of parts-centered manufacturing system are usually the ones to be planned through MRP.


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