Independent demand is defined as?

Independent demand refers to the demand for products that is not influenced by the demand for other products. It is driven by consumer purchasing behavior and market trends, meaning that it can change independently of other factors. This kind of demand does not rely on the decisions surrounding related goods, making it essential for businesses to analyze market signals, consumer preferences, and economic conditions to effectively meet that demand. Understanding independent demand is crucial for inventory management, as businesses must ensure they have the right products available to satisfy consumer needs without being overly reliant on production schedules or related products' demand patterns.

The other options do not accurately capture the essence of independent demand. For example, demand that requires no forecasting doesn't reflect the reality that while independent demand is not contingent on other products, it still necessitates analysis and forecasting based on market trends. Similarly, characterizing independent demand as predictable and consistent overlooks the variability that can arise in consumer behavior. Lastly, demand based solely on production schedules pertains more to dependent demand, which is driven by the production of related items rather than consumer choice.