Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional Exam with a comprehensive quiz featuring multiple choice questions and essential study material. Gain the knowledge and confidence needed to excel in your certification journey!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What type of demand is referred to as dependent demand?

Demand that arises from external market conditions
Forecasted demand from customer inquiries
Demand that is related to the bill of material structure for other items
Request for emergency inventory replenishment

The correct answer is: Demand that is related to the bill of material structure for other items

Dependent demand refers to the demand for items that are directly related to the production of finished goods. It is usually determined by the production needs of these finished goods based on the bill of materials (BOM), which outlines the components and raw materials necessary to assemble a final product. This type of demand is driven by the requirements of parent items; for example, if a manufacturer needs to produce 100 bicycles, it will determine the dependent demand for the components like tires, frames, and pedals based on that production quantity. Understanding this concept is crucial for effective inventory management and production planning. It allows organizations to align their inventory levels with the actual needs for components and materials, preventing excess stock or shortages based on anticipated final product demand. In contrast, independent demand is driven by external market conditions and customer preferences rather than production schedules, which explains why the other options do not accurately describe dependent demand.