V5 Ultimate
Manufacturing

Net Requirements

net requirement · gross-to-net

TL;DR

The remaining quantity an MRP run must source after subtracting on-hand, in-transit, allocated and safety-stock-protected inventory from gross requirements. The output that becomes planned POs and WOs.

Net Requirements = Gross Requirements − (On-hand Available + Scheduled Receipts + Allocated Reserves) + Safety Stock target. The MRP engine computes net requirements in time-phased buckets (typically daily) so each period's shortage is sized exactly and offset backwards by the lead time to produce a planned order release.

V5 makes the netting lot-, expiry- and hold-aware: on-hand quantities that are quarantined, past retest, or in a QA hold are not netted against the requirement. This eliminates the classic ERP failure mode of MRP 'covering' a requirement with material the floor cannot legally consume.

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