What type of demand is directly related to the demand of other SKUs and can be calculated without needing to be forecasted?

Dependent demand refers to the demand for products that are directly tied to the demand for other related products or stock-keeping units (SKUs). This type of demand can be calculated based on the production requirements of related items rather than forecasted. For example, if you know the demand for a finished product that consists of multiple components, you can directly calculate the required quantity of each component based on the set bill of materials.

This concept is particularly relevant in manufacturing and inventory management, where understanding how the demand for one item influences the demand for others is essential for efficient resource planning and management. By recognizing that this demand does not need to be forecasted but rather mathematically calculated based on existing relationships, businesses can better streamline their processes and reduce excess inventory.

In contrast, independent demand operates independently from other products and is often subject to market fluctuations, making it less predictable and reliant on forecasting. Static demand refers to a stable, unchanging level of demand over time, and dynamic demand fluctuates based on various market conditions, which do not pertain to the direct associations and calculations of dependent demand. Thus, the characteristics of dependent demand align perfectly with the question regarding its nature and calculation.