2.1 Gross& Net Demand Planning, BOM

Question 1

Gross demand planning converts….

The task here is to…

Answer 1

…. primary (independent) demand into secondary (dependent) demand

… derive the required amount of components from the knowledge an amount of salable products

Question 2

Whats a BOM?

1.
2.
3.

Answer 2

Bill of material

used to administrate product structures

a complete list for a product containing all associated items, including their description, quantity and unit

Question 3

Whats the Gross demand?

Answer 3

• total demand NOT considering stock and schedule receipts
• = secondary demand from BOM calculation + (internal) additional demand (+scrap, spare parts, test parts etc)

Question 4

Whats the Net Demand?

Answer 4

based on Gross demand

total demand considering stock and scheduled receipts

Question 5

Difference between Quantity Bill of Material and Structured Bill of Material?

What can you derive from which?

Answer 5

• Quantity Bill of Material: Lists components of product and the quantities unstructrued
• Structured: also shows quantities and also hierarchical relationships

you can derivce Quantity from Structure, but not structure from Quantity

Question 6

Demand Planning classification: What are types of material demand?

1.
2.

Answer 6

• demand according to origin: Primary, secondary, tertiary
• demand considering level of stock: gross and net

Question 7

What is…..

1. Primary Demand?
2. Secondary Demand?
3. Tertiary Demand?

Answer 7

1. demand for finished good (customer demand) / INDEPENDENT DEMAND
2. demand for raw materials, parts and components to fabricate primary demand / DEPENDENT DEMAND
3. demand for auxiliary and utiliy materials (wont be part of product)

Question 8

For Net Demand, how do we calculate the following things?

1. Stock level
2. reservations
3. placed orders
4. blocked stock
5. warehouse stock

Answer 8

1. substract from gross demand, bc we already have
2. if you substraxct stock level, you need to add reservations back on bc they are part of stock but not available
3. substract because they are able to fulfill future demand
4. add, because it reduces available stock
5. warehouse stock - (blocked stock + safety stock)