Net Requirements

Material demand remaining after available inventory, scheduled receipts and other supply are considered.

Examples

01Gross requirements of 1,200 valves minus 300 in stock and 400 on order leave net requirements of 500.
02The planner reviews net requirements every morning and creates purchase orders only for items where stock and open orders do not cover demand.
03Wrong stock figures lead to wrong net requirements, so cycle counting is used to keep data accurate.