Which type of demand changes over time?

Dynamic demand refers to the type of demand that fluctuates over time, influenced by various factors such as market trends, consumer preferences, seasonal variations, or economic conditions. This volatility means that businesses must continually adapt their operations, inventory levels, and forecasting methods to respond effectively to these changes.

In contrast, independent demand is relatively stable and not directly linked to the demand for another item, while static demand suggests a constant level over time without fluctuations. Dependent demand is tied to the demand for finished goods and is often predictable based on the production of those goods. Understanding the nature of dynamic demand is crucial for effective operations management, as it helps organizations to plan more accurately and maintain a competitive edge in a fluctuating market.