Gross and Net Requirements

On Hand

On hand inventory offsets gross requirement.

highlighted = computed this step

On Hand

On hand inventory is 25 components.

on hand=25\text{on hand} = 25
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