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Dependent demand inventory levels are usually managed by calculations using calculus-driven, cost-minimizing models?

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Question added by Prabin Rai , inventory officer , bijaya motor
Date Posted: 2017/05/22
شريف ابو العز
by شريف ابو العز , Accounting Manager , Ghithak

False.

Explanation:
Dependent demand inventory (such as raw materials or components used to make finished goods) is not typically managed using calculus-driven, cost-minimizing models.

Instead, it is managed using Material Requirements Planning (MRP) systems — which determine what components are needed, in what quantities, and when — based on the production schedule of the finished product.

So, dependent demand = managed by MRP systems, not calculus-based economic models.

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