Net demand
As part of the needs assessment process, a company faces the challenge of ensuring optimal warehouse utilization. At its core, it's about keeping enough stock on hand for sales and planning replenishment well in advance to ensure smooth operations. In this context, the so-called net demand is an indicator that is calculated as follows:
- Gross demand
- Abgzl. open orders
- Less Stock
- Add. Reservations
- Add. Safety stock
- Net demand
In plain language, net demand would equal gross demand if there were no open orders, inventory, reservations, and safety stock. It represents a coverage gap that provides information on how high the demand to be planned is in terms of stock or workshop inventories.
