All of the Following Statements Are True Regarding Dependent Demand

question 70

Multiple Choice

All of the following statements are true regarding dependent demand EXCEPT:

• A) it is one of the underlying concepts of materials requirements planning (MRP).
• B) its concept can be understood by examining the bill of materials.
• C) it can be calculated only by forecasting.
• D) it is directly related to the demands of other stock-keeping units (SKUs).

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Definitions:

Discontinued Product

A product that a company has decided to stop producing and selling, often due to declining sales or obsolescence.

Scrap Price

The amount of money that can be received for selling waste materials or remnants from production processes.

Idle Capacity

The unused portion of a company’s productive capacity, such as machinery or labor, that could be used for production but currently isn't.

Special Project

A temporary endeavor with a specific goal and timeline, which may require resources outside of the company's normal work scope.