Final answer:
Independent demand is forecasted at the level of finished goods in the supply chain, specifically at the distribution centers and retailers, as they deal directly with the end consumer demand.
Step-by-step explanation:
When utilizing both Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP), the independent demand is forecasted at the level of the finished goods in the supply chain. The DRP system is used to determine the need to replenish inventory at distribution centers and retailers, which is based on the independent demand from end consumers. On the other hand, MRP systems calculate the requirements for raw materials and components based on the schedules derived from DRP output, essentially dependent on the independent forecasts. Therefore, independent demand forecasting is a critical process primarily conducted at the retail or distribution stage, which directly faces the consumer.