What is an independent demand?
Independent demand refers to the call for the item in itself, without any relationship with other items. This is contrary to dependent demand where applications for one product depend on another product. In stock management, it may be important to determine whether there are relationships between items in stock, so they can be properly controlled. When the level of dependent items changes, companies want to make sure that their shares are reasonably added to suit the need. People do not have to buy anything else to use the couch, nor do they have to buy a couch to use another item. On the other hand, the company can also sell kitchen chairs that are subject to dependent demand. They are usually purchased to go with a kitchen table that is considered a parent item. The practice of selling both items together in most cases creates a relationship between TDVA. Companies are ordering sufficient amounts to meet the needs of customers and try to keep the numbers at a reasonable level. If the items have a dependent relationship, the stock must be managed differently. Sales of kitchen tables without chairs that would go with them does not mean that the shop is a favorite with customers, nor is it useful for chairs that do not match any of the warehouses.
Customer demand for specific products and services may change and companies must be ready to adapt. Independent demand causes the products very much subject to customer's whims because they are not sold in packages. Conversely, dependent demand can be checked more closely and can therefore be easier to predict and plan. In stock management software can help administrators with planning and May include tools adapted to different types of demand to provide the most reliable and reliable results.
Relationships between items in inventory can move over time and may also depend on the types of services offered by the store. Furniture shopsOhou is more likely to sell bedroom sets, for example, including mattresses, frames and leaves. On the other hand, a mattress store could sell more mattresses themselves with a smaller market in the frames. It will experience independent demand for mattresses. Management in the store can check items in the inventory and the total mission of the trade to determine whether the relationships exist and how they should be managed.