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Net requirements
The requirements for an item based on its gross requirements (from forecasts, customer orders or upper level demand), minus stock already on-hand and scheduled receipts. If the total is below the specified safety stock, a planned order is generated based on the lot size. The generation of a new planned order for a given net requirement is normally done only after calculating the effect of rescheduling all incoming receipts to the dates required.
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- Part of Speech: noun
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- Industry/Domain: Software
- Category: Supply chain
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