Distinguish between independent demand and dependent demand inventory and provide an example of each from the same company, same product line.

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The Answer is Independent demand inventory refers to inventory items whose demand levels are beyond a company's complete control. Dependent demand inventory refers to inventory items whose demand levels are tied directly to the company's planned production of another item. Because the required quantities and timing of dependent demand inventory items can be predicted with great accuracy, they are under a company's complete control. Examples will vary, but demand for the Wham-O Company's Hula Hoop is independent while the demand for the beads that make the delightful shoop-shoop sound is dependent on the demand for the Hula Hoop itself.

Distinguish Between Independent Demand and Dependent Demand Inventory and Provide