CIPS L4M7 Exam - Topic 1 Question 57 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 57
Topic #: 1

[All L4M7 Questions]

Which of the following are features of dependent demand items of stock?

They depend on the production levels of the user departments

They depend on the production capacity of the supplier

They can be managed using JIT (Just-in-Time) systems

They become obsolete within a short time

A2 and 3 only

B3 and 4 only

C1 and 3 only

D1 and 2 only

Show Suggested Answer

Suggested Answer: C

Dependent demand items rely on the internal production requirements of an organization. These items:

Depend on user department production levels: Demand is driven by the needs of the production line.

Can be managed using JIT systems: Just-in-Time inventory helps optimize stock levels based on immediate production needs, reducing holding costs and minimizing waste.

Dependent demand items differ from independent demand items, where demand is customer-driven rather than production-driven, emphasizing demand predictability and timely procurement.

by Timothy at Apr 05, 2025, 10:37 PM

Limited Time Offer

25%

Off

Get Premium L4M7 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Francene

5 months ago

Not sure about that, sounds a bit exaggerated.

upvoted 0 times

...

Ma

5 months ago

JIT is a game changer for managing these items!

upvoted 0 times

...

Yolando

6 months ago

I think they also rely on supplier capacity.

upvoted 0 times

...

Albina

6 months ago

Wait, do they really become obsolete quickly?

upvoted 0 times

...

Chantell

6 months ago

They definitely depend on production levels!

upvoted 0 times

...

Dong

6 months ago

I vaguely recall that items becoming obsolete quickly is more related to independent demand, so I'm leaning towards options that exclude 4.

upvoted 0 times

...

Celeste

7 months ago

I practiced a similar question where JIT was mentioned, and I think it applies to dependent demand items, so option 3 seems right.

upvoted 0 times

...

Angella

7 months ago

I'm not sure about option 2; I thought dependent demand was more about internal needs rather than supplier capacity.

upvoted 0 times

...

Fernanda

7 months ago

I remember that dependent demand items are linked to production levels, so I think option 1 is definitely correct.

upvoted 0 times

...

Jesusita

7 months ago

This is a tricky one. I'm not entirely sure about the relationship between dependent demand items and supplier capacity or item obsolescence. I'll have to think through each option carefully.

upvoted 0 times

...

Tonja

7 months ago

Okay, I've got this. Dependent demand items are tied to the production levels of the user departments and can be managed using JIT systems. Options A and C seem to capture those key features.

upvoted 0 times

...

Daren

8 months ago

Hmm, I'm a bit unsure about this one. The options seem to cover a lot of different aspects of dependent demand items. I'll need to carefully read through each one and think about which ones are true.

upvoted 0 times

...

Eleni

8 months ago

This looks like a straightforward question on dependent demand items. I'll focus on understanding the key features mentioned and eliminate the options that don't match.

upvoted 0 times

...

Chanel

1 year ago

I'm with Geoffrey on this one. C is the way to go. Dependent demand items are all about that JIT magic, baby!

upvoted 0 times

...

Tamekia

1 year ago

Haha, I bet the supplier's production capacity is as reliable as a 50-year-old jalopy! But yeah, I'd go with D too.

upvoted 0 times

Marshall

11 months ago

User 3: Definitely, managing them with JIT systems can help streamline the process.

upvoted 0 times

...

Ma

11 months ago

User 2: Yeah, that's why it's important to consider the production levels of user departments for dependent demand items.

upvoted 0 times

...

Ashley

12 months ago

User 1: Haha, I agree! Supplier's production capacity can be so unpredictable.

upvoted 0 times

...

Nenita

1 year ago

But dependent demand items are based on user departments and can be managed using JIT systems, so I still think C is correct.

upvoted 0 times

...

Lorean

1 year ago

I disagree, I believe the answer is D) 1 and 2 only.

upvoted 0 times

...

Gilma

1 year ago

D seems more accurate to me. Dependent demand items depend on both the production levels of the user departments and the production capacity of the supplier.

upvoted 0 times