Question

When demand for component parts is tied to demand for the finished part, we have ___ demand.

Answer 1

The correct option is D.

Depended demand

What is Dependent Demand?

Component parts, raw materials, or subassemblies are all examples of dependent demand. This desire is dependent upon the demand for a parent item, which is often a product, before it may exist.

What is dependent demand in inventory management?

Dependent demands are those where the need for an item's inventory is dependent on the need for another item. It is possible to refer to raw material and component inventories as dependent demand inventories since they depend on the demand for finished goods.

Demand is based on supply and demand if the market for the finished good depends on the market for the component parts

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