For any period the beginning inventory, plus any replenishment order due, less the gross requirement equals planned orders.

Question

Quizplus · Accepted Answer

The correct formula for planned orders in inventory management is: beginning inventory + scheduled receipts - gross requirements = projected ending inventory. Planned orders are then determined by the need to meet projected ending inventory and safety stock requirements, not directly by the formula stated.

For Any Period the Beginning Inventory, Plus Any Replenishment Order