Which best defines the gross requirements for a component item?
A) the forecasted customer demand for the component
B) the amount of safety stock needed to buffer against uncertainties
C) the sum of gross requirements for all parents of the component
D) the total demand for the component derived from all immediate parents

Question

Quizplus · Accepted Answer

The gross requirements for a component item are defined as the total demand for that component derived from all immediate parents (the products in which the component is used). This encompasses all the demand placed on the component by the production of its parent items, not just the forecasted customer demand or safety stock levels.

Which Best Defines the Gross Requirements for a Component Item