Dependent demand is described by a probability distribution.

Question

Quizplus · Accepted Answer

Dependent demand refers to demand for components or raw materials that are dependent on the demand for the final product. It is not described by a probability distribution, but rather by the bill of materials or the production plan of the final product. Probability distributions are typically used to model independent demand, which is the demand for finished goods that are not influenced by the demand for other products.

Dependent Demand Is Described by a Probability Distribution