Question

Which of the following statements is TRUE? Group of answer choices Dependent demand is directly related to the demand of other stock-keeping units (SKUs) and can be calculated without needing to be forecasted. When using ABC analysis, C items require close control by operations managers as they account for a large dollar value but a relatively small percentage of total items. Stockouts occur in a fixed-quantity system (FQS) whenever the lead-time demand exceeds the replenishment level (M). Inventory is any physical asset held for future use or sale.

Answer 1

Answer:

A). Dependent demand is directly related to the demand of other stock-keeping units (SKUs) and can be calculated without needing to be forecasted.

Explanation:

The first statement asserts a true claim as it correctly states that 'dependent demand is promptly associated to the demand of further SKUs and therefore, it can be measured without requiring any prediction.' Dependent demand is characterized as a demand that is reliant on the other products' demand. This is why such demands are directly influenced by a rise or fall in the other products' demand and this is the reason due to which dependent demand can be calculated easily without any prediction because it will observe a similar impact as its associated product would face. Thus, option A is the correct answer.