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Chapter 4: Q10PE. (page 585)

This is the amount needed after considering what we currently have in inventory and what we expect to arrive in the future.

Short Answer

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Net requirements.

Step by step solution

01

Net requirements

The net requirement is the amount required for present plans after the amount of inventory is assigned and then the order is delivered.

02

Calculation of Net Requirement

The net requirement isthe requirement for the goods and services that forms the overall requirement minus the existing inventory and the planned items receipt.

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