•Vertical dependent is characterized by sequence of purchasing and manufacturing, such as number of tyres used for assembly of automobiles.
•Horizontal dependent occurs in a situation where an attachment, promotion item or operator’s manual is included with each item shipped.
(a)The demanded item may not be required to complete the manufacturing process but may be needed to complete the marketing process.
(b) Once manufacturing plan for base item is determined , requirements of components/ attachments can be calculated directly and no separate forecasting is done.
•Independent demands are ones that are not related to the demand for another item.
•For instance, demand for refrigerator is not related to the demand for milk.
•Independent demand items are forecasted individually.
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