What is the relationship between Gross requirement scheduled receipts projected inventory on hand net requirement planned order receipts and planned order releases How to calculate the net requiremen

Gross requirement is the total amount of product that is required to meet the demand. Scheduled receipts are the amount of product that is already scheduled to arrive during a particular time period. Projected inventory on hand is the amount of product that is expected to be in the inventory at the end of a particular time period.

Net requirement is the amount of product that needs to be produced or purchased to meet the demand after taking into account the scheduled receipts and projected inventory on hand. Planned order receipts are the amount of product that is planned to arrive during a particular time period, while planned order releases are the amount of product that is planned to be produced during a particular time period.

The formula for calculating the net requirements is:

Net requirements = Gross requirement - Scheduled receipts - Projected inventory on hand + Planned order receipts - Planned order releases

By using this formula, we can calculate the net requirements of the product that needs to be produced or purchased to meet the demand.