Glossary of Terms

We use these terms in the help:

Action message

The result of the Material Requirements Planning process that identifies the type of action required to correct a current or potential problem.

Dependent demand

Demand that is related to or derived from the bill of material structure for other inventory items or end products.

Firm planned order

A planned order than can be fixed in quantity and date by a planner. The MRP process cannot change the planned order automatically.

Forecast

An estimate of future demand either entered or generated from past history.

Forecast period

The unit of time for which forecasts are entered — for example, week, month, quarter, and the like.

Gross requirements

The total of dependent and independent demand for an inventory item.

Independent demand

Demand such as a sales order or forecast for an inventory item that is unrelated to the demand for other items.

Low level code

A number that identifies the lowest level in any bill of material at which a particular component appears. Material requirements are calculated in increasing order of low level codes. Greentree Desktop maintains the low level code.

Material Requirements Planning (MRP)

A process that uses a forecast, bill of material and inventory data to calculate both the quantity required and the release and due dates for materials. Action messages are also generated by the process.

Net requirement

Derived by applying gross requirements against inventory on hand, scheduled receipts and minimum stock. Net requirements take lot sizes into account, and are offset by lead times. They are subsequently converted into planned orders.

Pegged requirements

The capability to view the next level parent item as the source of the demand.

Planned Order

A suggested purchase or factory order quantity. Planned orders are based on net requirements which are then lot-sized and offset for lead times.

Planned Order Due date

A suggested planned due date of an order.

Planned Order Release date

A suggested planned release date of the order.

Projected available

An inventory balance projected into the future. It is the running sum of on-hand inventory minus requirements plus scheduled receipts and planned orders.

Requirements traceability

The capability to view the sources of requirements through all levels.

Scheduled receipt

An open factory or purchase order with an order quantity remaining.