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Manufacturing

Net Requirements

net requirement · gross-to-net

In short

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.

How V5 handles it
Score your compliance gap — then download the validation pack.
A guided self-assessment walks you against the regulator clauses that apply to your industry. The validation pack — IQ/OQ scripts, traceability matrix, risk assessment, intended-use statement — generates from the same evidence so you can hand it to an auditor on day one.
Document control — one version in force, every change signed and explained.
Draft the next revision while the current one stays in use, approve it under your sign-off route, and track training on it — with the history kept.
QMS — quality records next to the work they concern.
Deviations, corrective actions and quality review sit in the same system as production, so each quality record references the work order, step and lot it concerns.
Related terms
MRPMRP IIBOM ExplosionFEFOBOMPhantom BOM ExplosionRoutingWOBackward SchedulingForward SchedulingFinite Capacity SchedulingDemand ForecastingEconomic Order Quantity (EOQ)Days of Supply (DOS)Fill RateBackflush ConsumptionFIFO
Software that covers Net Requirements
V5 Ultimate MRP Software
V5 Ultimate MRP runs the classic material-requirements engine — BOM explosion, gross-to-net, time-phased POs and work orders — on…
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