Which one of the following most closely describes net requirements for the current period?
A)gross requirements for current period− projected on-hand inventory for current period
B)gross requirements for current period − planned receipts for previous period
C)gross requirements for current period − planned order releases for previous period + projected on-hand inventory for previous period
D)gross requirements for current period − planned order releases for previous period
E)gross requirements for current period − projected on-hand inventory for current period + planned order releases for current period

Question

Quizplus · Accepted Answer

Net requirements for the current period are calculated by subtracting the projected on-hand inventory for the current period from the gross requirements for the current period. This reflects the actual amount needed after accounting for what is already available.

Which One of the Following Most Closely Describes Net Requirements