Which of the following statements is NOT true?

A. Demand for items is dependent when the relationship between the items can be determined.

B. Less inventory frees up capital and floor space for other uses.

C. For any product for which a schedule can be established, dependent techniques should be used.

D. For any product, some components of that product are independent demand items.

Question

Business

Guest

18 January, 23:12

Which of the following statements is NOT true?

A. Demand for items is dependent when the relationship between the items can be determined.

B. Less inventory frees up capital and floor space for other uses.

C. For any product for which a schedule can be established, dependent techniques should be used.

D. For any product, some components of that product are independent demand items.

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Answers (1)

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Kendal · Answer 1

D) for any product, some components of that product are independent demand items

Explanation:

Dependent Demand Item refers to the item whose demand is required by the one-by-one calculation base on the independent demand items such as products and service parts, and includes assemblies, subassemblies, processed parts, purchased parts, and raw materials.

An inventory of an item is said to be falling into the category of independent demand when the demand for such an item is not dependant upon the demand for another item. Finished goods Items, which are ordered by External Customers or manufactured for stock and sale, are called independent demand items.