Which one of the following most closely describes net material requirements?
A) gross requirements - amount on hand - scheduled receipts
B) gross requirements - planned receipts
C) gross requirements - order releases + amount on hand
D) gross requirements - planned order releases
E) gross requirements - amount on hand + planned order releases

Question

Quizplus · Accepted Answer

Net material requirements is the difference between the gross requirements and the sum of the scheduled receipts and amount already on hand. Therefore, the correct formula for net material requirements is gross requirements - amount on hand - scheduled receipts. Choice A correctly reflects this formula.

Which One of the Following Most Closely Describes Net Material