Independent demand ratio

Definition

For manufacturers that also supply replacement parts and consumables this metric helps to define the % mix of demand for an item from independent (outside sources) vs dependent (inside sources). The ratio is calculated by dividing the unit usage for customer orders by the total unit usage of the item from all sources (work orders, sales samples, destructive testing, inventory adjustments, etc.).

Formula

Tags

demand, inventory, order, test

Metadata

Category: Inventory · Added: May 17, 2026