Asked by Andrew Cameron on May 06, 2024
Verified
If 100 units of Q are needed and 10 are already in stock, then the gross requirement is 100 and the net requirement is 90.
Gross Requirement
The total quantity of a material or part needed to fulfill production, before considering any inventory on hand or scheduled receipts.
Net Requirement
The total amount of a material or resource needed, after accounting for inventory on hand and any scheduled receipts.
- Gain insight into the evaluation and relevance of lead times, availability of inventory, and the issuance of purchase orders in the context of Material Requirements Planning.
Verified Answer
JG
Jackie GibbsMay 07, 2024
Final Answer :
True
Explanation :
The gross requirement is the total amount needed, which is 100 units. The net requirement is the amount needed after taking into account any inventory already on hand, which is 90 units (100-10=90).
Learning Objectives
- Gain insight into the evaluation and relevance of lead times, availability of inventory, and the issuance of purchase orders in the context of Material Requirements Planning.
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