CPIM Practice Exam

What does dependent demand directly relate to?

1. Market trends and consumer behavior

2. Internal changes within an organization

3. Components of final product structures

4. Seasonal sales patterns

The correct answer is: Components of final product structures

Dependent demand directly relates to components of final product structures because it refers to the demand for items that are not sold directly to customers but are required to produce a finished good. This type of demand is calculated based on the production schedules and the Bill of Materials (BOM) for a finished product, meaning that as the demand for the final product increases, the demand for its individual components also increases in a predictable manner. For example, if a company plans to manufacture a certain number of bicycles, the demand for frames, wheels, and other parts directly depends on the quantity of bicycles being produced. The dependencies between these components and their relationship to the final product illustrate how dependent demand operates within supply chain management. In contrast, market trends and consumer behavior, internal changes within an organization, and seasonal sales patterns pertain more to independent demand. These factors influence demand for final products or services based on broader external and internal conditions rather than the internal relationships of components within a product structure.