dependent demand

One of the key insights of this management system was the distinction between dependent demand and independent demand.

Dependent demand:

Independent demand is demand originating outside the plant or production system, while dependent demand is demand for components.

Independent demand is demand which originates outside of the production system, therefore not directly controllable, and dependent demand is demand for components of final products, therefore subject to being directly controllable by management through the bill of materials, via product design.