What is dependent demand?

What is dependent demand?

Dependent demand is the demand for component parts, raw materials, or sub-assemblies. This demand does not occur until there is demand for a parent item, which is typically a product. Dependent demand is usually calculated through a material requirements planning system.

What is dependent demand quizlet?

Dependent Demand- demand for items that are subassemblies or component parts to be used in the production of finished goods. Demand for these products varies on the product the subassemblies produce. States which end items are to be produced, when these are needed, and in what quantities.

Which of the following most closely describes net material requirements in an MRP system?

The correct answer is a. gross requirements – amount on hand – scheduled receipts .

What does the word dependent in dependent demand inventory refer to quizlet?

Demand for items that are considered end items that go directly to a customers, and for which demand is influenced by market conditions and not related to inventory decisions for any other item. Dependent Demand. Demand for items that are used to make another item or are considered to be part of another item

What is meant by dependent demand?

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.

What is dependent demand & independent demand?

Independent Demand vs. Independent demand is the demand for a finished good, such as a car, while dependent demand is the demand for a component part of a finished good, such as the tires on a car. Dependent demand is derived from the demand for a finished good.

What is Dependant demand inventory?

If the demand for inventory of an item is dependant upon another item, such demands are categorized as dependant demand. Raw materials and component inventories are dependant upon the demand for Finished Goods and hence can be called as Dependant demand inventories.

What is dependent demand in SAP?

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.)

What does dependent demand mean give an example?

Dependent demand is the demand for component parts, raw materials, or sub-assemblies. This demand does not occur until there is demand for a parent item, which is typically a product. Dependent demand is usually calculated through a material requirements planning system.

What is dependent and independent demand with example?

Dependent demand means that demand for the product in question is influenced by the demand for some other product, according to Viva Differences. For example, the demand for computer parts is influenced by the demand for the finished product of computers.

Is demand independent or dependent?

Independent demand is demand for a finished product, such as a computer, a bicycle, or a pizza. Dependent demand, on the other hand, is demand for component parts or subassemblies. For example, this would be the microchips in the computer, the wheels on the bicycle, or the cheese on the pizza.

What is required for an MRP system to work?

At a minimum, an MRP system must have an accurate master production schedule, good lead-time estimates, and current inventory records in order to function effectively and produce useful information.

What are the three components of any material requirements planning MRP system?

The three basic inputs of an MRP system are the master production schedule (MPS), inventory status file (ISF), and bill of materials (BOM). The MPS is simply the quantity and timing of all end goods to be produced over a specific time period. MPS is estimated through customer orders and demand forecasts.

Which of the following is a major input to an MRP system?

The three major inputs of an MRP system are the master production schedule, the product structure records, and the inventory status records.

Which of the following is an output of MRP?

The outputs of a MRP II system are: Sales order priorities / Bills of Materials / Material Requirement Plans. Material Requirement Plans / scheduled purchase orders / capacity requirement plansStock quantities / Bills of Materials / Master Production Schedule.

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