Differentiate Independent and Dependent Demand.

How important is MRP in dependent

demand?
The demand for a finished product, such as laptop, car, table, or chair is known as Independent
demand. On the other hand, the demand for a unit assembled separately or component parts that
is used for designed to be incorporated with other units into a finished product is called
Dependent demand. MRP or material requirements planning is used to compute dependent
demand. MRP is important in dependent demand because it considers three questions that helps
in computing the dependent demand, the what is needed, when is it needed, and how much is
needed. Not only the quantities of each component parts needed but it also considers the lead
times needed to produce and receive the items.