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).

Distinguish different inventory types (e.g., cycle inventory, safety inventory) and their roles in supply chain management.

Comprehend the effects of demand forecast accuracy and aggregation on inventory management.

Identify the factors influencing the appropriate level of safety inventory and understand the trade-offs involved.

Understand the mechanisms of inventory review policies (e.g., continuous review, periodic review) and their impact on inventory levels and order patterns.

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Definitions:

Beneficiary's Rights

The legal entitlements of a beneficiary, such as to receive benefits or assets from a trust, will, or insurance policy.

Modification or Discharge

The act of changing the terms or conditions of a contract or agreement, or releasing parties from their obligations under it.

Identical in Every Jurisdiction

A statement indicating that a legal principle or rule applies uniformly across all legal jurisdictions, though this is relatively rare due to variations in laws.

Assignee

An individual or entity to whom rights or interests have been transferred by another, often used in the context of contracts or legal claims.