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madhumeta madhumeta
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6 years ago
Briefly describe the differences between dependent and independent demand. Provide examples of dependent and independent demand items for each of the following industries: automotive industry, personal computer industry, bicycle industry
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6 years ago
a . Dependent demand items are those parts whose demand is based on the demand of the final product in which the parts are used. Independent demand items are the end items consumers typically buy, and whose demand is affected by trends, seasonal patterns, and general market conditions. Service parts are also considered independent demand items.
b. Automotive Industry:

1 . Independent demand item - car/truck and service parts.

2 . Dependent demand item - tires, axle, steering wheel, and battery used to assemble the automobiles.

c. Personal Computer Industry:

1 . Independent demand item - computer/laptop computer and hardware sold directly to the consumers.

2 . Dependent demand item - monitor, CPU, and keyboard used to assemble the PC.

d. Bicycle Industry:

1 . Independent demand item - bicycle

2 . Dependent demand item - tires, handlebars, chain, and seats used to assemble the bicycles.
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