Net Requirements Calculator

How to Use the Calculator

1. Enter the Gross Requirements - the total number of units needed to meet customer demand.
2. Input the Lead Time in days - the time between placing an order and receiving it.
3. Specify the Available Inventory - the current stock on hand.
4. Set the Minimum Safety Stock - extra inventory kept to prevent stockouts.
5. Click the Calculate button to determine the net requirements.

Understanding the Results

The calculator shows the Net Requirements - the number of units that need to be ordered to meet demand while maintaining the minimum safety stock level. If the result is zero or negative, it means no new order is needed based on current information.

Example Scenario

Suppose you need to produce 100 units (Gross Requirements), with a lead time of 5 days. You currently have 30 units in inventory (Available Inventory) and want to maintain a minimum safety stock of 20 units (Minimum Safety Stock).

Calculation: Net Requirements = 100 - 30 + 20 = 90 units. In this case, you need to order 90 units to meet the demand while maintaining your safety stock.

Important Considerations

• This calculator provides a basic calculation of net requirements. In real-world scenarios, other factors like production capacity, batch sizes, and supplier lead times should also be considered.
• The lead time input is not used in the current formula but is important for production planning and scheduling.
• For more complex inventory management needs, consider using specialized ERP or inventory management software.