Planning & Forecasting

Horizontal Dependency

Definition

Horizontal dependency is the relationship among components at the same level of a bill of material: because all of them are required to build one parent unit, a shortage of any single component blocks the assembly of all the others.

In Practice

Horizontal dependency is why component availability must be planned as a set. If a kit needs 40 parts and 39 are on hand, the assembly still cannot start — and service level compounds multiplicatively: with each of 40 components independently available 98% of the time, the odds of a complete kit are roughly 0.98^40, about 45%.

Planners manage horizontal dependency through kitting checks before order release, allocating scarce components to specific orders, and setting component safety stocks with the full-kit probability in mind rather than item-by-item.

Frequently Asked Questions

What is the difference between horizontal and vertical dependency?

Horizontal dependency links components at the same BOM level — all siblings are needed simultaneously to build the parent. Vertical dependency links levels — a parent's order generates demand for its components below. MRP explodes vertical dependencies; shortage checking and kitting manage horizontal ones.

Why does horizontal dependency hurt service levels?

Availability multiplies across required components. Even with each of 20 parts at 99% availability, the chance of having all 20 at once is about 82%. That is why assembly operations verify full-kit availability before releasing orders, and why one cheap C-item can idle an expensive line.

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