Which Of The Following Is The Net Requirement Using An MRP S

Which Of The Following Is The Net Requirement Using An Mrp Program If

Which of the following is the net requirement using an MRP program if the gross requirement is 10,000 and the inventory on hand is 4,000?

- 14,000

- 4,000

- 6,000

- 10,000

Paper For Above instruction

The net requirement in Material Requirements Planning (MRP) is a crucial figure that determines how much material must be ordered or produced to meet demand after accounting for existing inventory and planned receipts. Given the gross requirements and current on-hand inventory, the calculation of net requirements follows a straightforward formula: Net Requirement = Gross Requirement – Inventory on Hand. If the gross requirement is 10,000 units and the inventory on hand is 4,000 units, then the net requirement is calculated as 10,000 – 4,000 = 6,000 units. This figure indicates that an additional 6,000 units need to be procured or manufactured to meet the total demand without stockouts. This process exemplifies the fundamental operation of MRP systems, which aim to optimize inventory levels while fulfilling customer requirements efficiently, minimizing excess stock, and ensuring timely production schedules (Fuller et al., 2013). Accurate calculation of net requirements supports lean inventory management, reduces carrying costs, and enhances responsiveness in complex supply chains (Bond et al., 2014). Understanding these calculations is vital for operations managers to synchronize production with demand forecasts and inventory policies effectively.

References

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