Distinguish between dependent and independent demand. How are these demands treated differently?
What will be an ideal response?
Dependent demand means that the need for an item is directly related to the need for some other item. Independent demand is uncertain and is not related to the need for any other item. Typically, independent demand is the demand for an end item offered in the marketplace.
An important characteristic of demand relates to whether demand is derived from an end item or is related to the item itself. We use the terms "independent" and "dependent demand" to describe this characteristic. Briefly, the distinction between independent and dependent demand is this. In independent demand, the demands for various items are unrelated to each other. For example, a workstation may produce many parts that are unrelated but meet some external demand requirement. In dependent demand, the need for any one item is a direct result of the need for some other item, usually a higher-level item of which it is part.
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