Which one of the following most closely describes net requirements for the curre
ID: 430448 • Letter: W
Question
Which one of the following most closely describes net requirements for the current period?
gross requirements for current period - planned order releases for previous period + projected on-hand inventory for previous period
gross requirements for current period - planned receipts for previous period
gross requirements for current period - planned order releases for previous period
gross requirements for current period - projected on-hand inventory for current period
gross requirements for current period - projected on-hand inventory for current period + planned order releases for current period
A.gross requirements for current period - planned order releases for previous period + projected on-hand inventory for previous period
B.gross requirements for current period - planned receipts for previous period
C.gross requirements for current period - planned order releases for previous period
D.gross requirements for current period - projected on-hand inventory for current period
E.gross requirements for current period - projected on-hand inventory for current period + planned order releases for current period
Explanation / Answer
1. D. Gross requirement for the current period - projected on hand inventory for the current time period.
We can say that this is the correct option because this formula gives the actual amount that is needed in each time period. When we consider the gross requirement and subtract the on hand inventory that we already have, we can determine the net requirement of the current time period for any given organizational process.
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