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What is independent demand in Multi-echelon case and how's it calculated?

in Supply Chain Planning and Collaboration 14 comments

Summary:

What is Independent demand in multi-echelon replenishment planning and how is it calculated?

The diagram says that the Independent shipments history is calculated as the difference between shipments history and dependent shipments history. I wanted to know how is dependent shipments history calculated in the system?

Is "dependent shipment history" based on item relationship or is it basically demand for raw materials, components, subassemblies whose demand is dependent on demand of F/G?

Additionally, if the plan is configured with independent shipments history measure and output as independent shipments forecast, how is supply calculated using the shipments forecast?

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