What do you mean by dependent demand and independent demand? What are the key attributes of a dependent demand item? Explain with one example each from manufacturing and service organizations.

Dependent demand refers to the demand for items that are directly influenced by the demand for another item, usually a finished product. This type of demand is not independent but is dependent on the production schedule or the quantity of the final product being manufactured. Dependent demand items are typically components or raw materials that are required to assemble a final product.

Independent demand, on the other hand, refers to the demand for finished goods or services that is not dependent on the demand for other products. This demand arises from external factors such as customer orders, market trends, or seasonal fluctuations. It is typically forecasted based on market conditions and is independent of production schedules.

Key attributes of a dependent demand item include:

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