What is net requirement in SAP SRD-SCM-SCP - SCM-Supply Chain Planning and Control?

SAP Term: net requirement

• Component: SRD-SCM-SCP

• Component Name: SCM-Supply Chain Planning and Control

• Description: A figure derived from the total of gross requirements and allocations for a component, less the stock on hand, scheduled receipts, and safety stock. Net requirements become planned orders when lot-sized and adjusted for lead time.

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• Key Concepts: 
  Net requirement is a term used in SAP Supply Chain Planning and Control (SCM-SCP) to refer to the difference between the planned order quantity and the available stock. It is calculated by subtracting the available stock from the planned order quantity. The net requirement is used to determine the amount of material that needs to be procured or produced in order to meet customer demand.
  
  How to use it: 
  Net requirement can be used to determine the amount of material that needs to be procured or produced in order to meet customer demand. In SAP SCM-SCP, net requirement can be calculated by subtracting the available stock from the planned order quantity. This calculation can be done manually or automatically using SAP’s planning tools. 
  
  Tips & Tricks: 
  It is important to keep track of net requirements in order to ensure that customer demand is met. It is also important to monitor changes in net requirements over time, as this can indicate changes in customer demand or supply chain issues. 
  
  Related Information: 
  Net requirement is related to other terms such as planned order quantity, available stock, and procurement/production planning. Understanding these terms and how they interact with each other is essential for effective supply chain management.