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Net Requirements
Once the gross requirement is established, you can calculate the net requirement and planned orders. On-hand, minimum balances and scheduled receipts are considered when determining the planned order quantity.
Example
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On-Hand Balance |
25 |
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Minimum Balance |
20 |
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Today |
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19/12/17 |
21/12/17 |
31/12/17 |
01/01/18 |
05/01/18 |
10/01/18 |
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20/01/18 |
3101/18 |
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Gross Requirements |
|
15 |
75 |
40 |
350 |
100 |
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200 |
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Scheduled Receipts |
5 |
5 |
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Calculated On-Hand |
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-55 |
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Net Requirement |
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75 |
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Planned Order |
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75 |
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Projected On-Hand |
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20 |
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On-hand = 25
Gross requirements up to and including today = 90 (15 + 75)
Scheduled Receipts up to and including today = 10 (5 + 5)
Calculated on hand for today = -55 (25 - 90 + 10)
Minimum balance = 20
Calculated planned order = 75 (55 + 20)