1. SAP Glossary
  2. Response
  3. independent demand


What is independent demand in SAP SCM-IBP-RM - Response?


SAP Term: independent demand

  • Component: SCM-IBP-RM

  • Component Name: Response

  • Description: A requirement for an item that is not directly linked to demand for other items. Sales orders and forecasts are considered independent demands.


Smart SAP Assistant

  • Key Concepts: 
    Independent demand is a type of demand in supply chain management that is not dependent on other demand. It is the demand for a product or service that is driven by customer orders, rather than by the production of other products. 
    
    How to use it: 
    Independent demand can be used to forecast customer orders and plan production accordingly. It can also be used to determine the optimal inventory levels for a given product or service. Additionally, independent demand can be used to identify potential areas of improvement in the supply chain. 
    
    Tips & Tricks: 
    When forecasting independent demand, it is important to consider factors such as seasonality, customer preferences, and market trends. Additionally, it is important to consider the impact of external factors such as economic conditions and competition. 
    
    Related Information: 
    Independent demand is closely related to dependent demand, which is the demand for a product or service that is driven by the production of other products. Additionally, independent demand is related to inventory management, which involves managing the levels of inventory in order to meet customer demands.
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