What are gross requirements?
Subsequently, one may also ask, how do you find the gross requirement?
Calculating Gross Requirements. This is a calculation which is first performed in the MRP's planning functions. In this calculation, gross requirements are obtained using the MRP list by grasping the demand quantity for the item (whose logistics is about to be planned) by period, and then unifying them.
Secondly, what is the difference between a gross requirements plan and a net requirements plan? The difference between a gross requirements plan and a net requirement plan is that a net plan adjusts for on-hand inventory and scheduled receipts at each level. Distribution Resource Planning (DRP) is a time-phased stock-replenishment plan for all levels of the distribution network.
Similarly, what is net requirement?
Net requirements are the requirements for an item based on its gross requirements (from forecasts, customer orders or upper-level demand), minus stock already on-hand and scheduled receipts. If the total is below the specified safety stock, a planned order is generated based on the lot size.
What is a scheduled receipt?
Scheduled receipts is an information included in MRP records. Scheduled receipts indicate when an existing replenishment order (or open orders) for an item due. In an MRP record, the Open Order row shows when to expect these orders to be completed and how much has been ordered.