Gross and Net Requirements

Net Requirement

Net requirement is the remaining component need after on hand.

highlighted = computed this step

Net Requirement

Net requirement is gross requirement minus on hand.

80−25=5580 - 25 = 55
Net requirementThe table subtracts on hand from gross requirement.net requirementvaluegross80on hand25net55

Read the Net

The net requirement is 55 components.

net requirement=55\text{net requirement} = 55
BOM explosionThe chart shows gross and net requirements.MRP BOM explosionparent demand 40; use 2; gross 80; net 55parentdemand 40use 2 eachcomponenton hand 25requirementsgross80on hand25net55increase20basebase gross 80net 55what-ifwhat-if gross 100net 75what-if gross 100; net 75; increase 20deterministic one-level MRP arithmetic only