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CIPS Exam L4M7 Topic 1 Question 57 Discussion
Topic #: 1
Which of the following are features of dependent demand items of stock?
They depend on the production levels of the user departments
They depend on the production capacity of the supplier
They can be managed using JIT (Just-in-Time) systems
They become obsolete within a short time
Dependent demand items rely on the internal production requirements of an organization. These items:
Depend on user department production levels: Demand is driven by the needs of the production line.
Can be managed using JIT systems: Just-in-Time inventory helps optimize stock levels based on immediate production needs, reducing holding costs and minimizing waste.
Dependent demand items differ from independent demand items, where demand is customer-driven rather than production-driven, emphasizing demand predictability and timely procurement.
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