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CIPS Exam L4M7 Topic 12 Question 5 Discussion

Actual exam question for CIPS's L4M7 exam
Question #: 5
Topic #: 12
[All L4M7 Questions]

Ranger Mobile Ltd is a emerging smartphone manufacturer. The manufacturer adopts the just-in-time method: First, the customers make orders, then it will decide which components to be pur-chased according to the bill of materials. These components are known as which of the following?

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Suggested Answer: C

Dependent demand is the requirement for stock item which is directly related to and therefore de-pendent upon the rate of production (examples are: raw materials, components, energy). The com-ponents in the scenario are dependent demand items.

Independent demand is the requirement for stock item which is not directly related to, and is therefore independent of rate of production.


LO 2, AC 2.1

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