Thanks.
Let me summarize my questions to be simple:
I believe there is some typo in the questions that I posted in the first thread but I am not able to edit it.
Here are the rectified question:
1. Should it be INDEPENDENT or DEPENDENT?
"If order items are delivered, the item category that was previously defined using the order item is transferred to the delivery item. For delivery items that are dependent on the order type, you cannot transfer any item categories from the order. For the delivery items, item category determination occurs in the delivery."
Analytically speaking, this should be independent as delivery item that is not related to order type must have their delivery item categories determined via delivery item category determination, since there is nothing to copy from sales order item category.
2. Would anyone give me example of Value item in Sales Order?
Thanks