Net Requirements
net requirement · gross-to-net
The quantity an MRP run must still source: gross requirements plus the safety-stock target, less available (unallocated) on-hand stock and scheduled receipts. The output that becomes planned POs and WOs.
Net Requirements = Gross Requirements + Safety Stock target − (On-hand Available + Scheduled Receipts), where On-hand Available is stock not already allocated to other demand (never add allocations back as supply), and a negative result means no net requirement. 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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