An independent demand is a demand that is not based on the
demand for another item while a dependent demand is based on the
demand for another item.
For example, the demand for chairs of a table and the table
itself is based on the demand for the table. The table in this
example is the item with independent demand. Knowing this, one can
forecast an independent demand while dependent demands are
calculated based on the independent demand item. Business to
business independent demands tend to be demands for such items as
capital goods, office supplies, MRO (maintenance, repair, and
operating) items, and anything else for which the dependency is
unknown. Independent demands are usually handled with standalone
purchase orders, although some items might be covered by
contractual relationships such as volume, price and other
agreements.