Supply Chain Glossary - D

Supply Chain Glossary - D

department overhead rate

The overhead rate applied to jobs passing through a department.

Demand that is directly related to or derived from the bill of material structure for other items or end products. Such demands are therefore calculated and need not and should not be forecast. A given inventory item may have both dependent and independent demand at any given time. For example, a part may simultaneously be the component of an assembly and sold as a service part. See: independent demand.


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