Business Terms Dictionary

Dependent Demand

Demand that is directly tied to the production or assembly of another item, typically derived from a Bill of Materials (BOM). © Copyright 2025 Demand Driven Institute. Used with permission.

How is it used?


Since Dependent Demand is calculated based on production needs rather than customer orders, it does not require forecasting. A single item can have both Dependent Demand (as a component in manufacturing) and Independent Demand (when sold as a standalone product).


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In DDMRP, Dependent Demand is managed dynamically by placing buffers at key Decoupling Points instead of relying on rigid MRP-driven schedules. ForgeFlow Cloud ERP ensures that replenishment for dependent items is based on real consumption rather than static forecasts, reducing variability and improving material flow. By integrating real-time demand signals and basada en búferes-driven planning, you can stabilize production, minimize lead times , and maintain optimal stock levels without overproduction.
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