MRP glossary TOP > Material Planning > Allocation
Allocation
Allocation
Calculating Net Requirements
It is to ensure the only necessary quantity of necessary items including parts or raw materials in advance in response to the orders to produce products and parts, and the requests of service parts. Generally speaking, "allocation" has two interpretations: one is called "Fixed Allocation" where the allocated quantity of item is ensured and is not used for other requests; the other is "Spare Allocation" where whether a certain quantity of item is available or not is just confirmed. The inventory allocation in MRP is the latter case where the items are allocated to the inventory quantities and released orders (not-yet-delivery items). This is also called Calculating Net Requirements.
Related term: Released Order
Calculating Net Requirements
It is to ensure the only necessary quantity of necessary items including parts or raw materials in advance in response to the orders to produce products and parts, and the requests of service parts. Generally speaking, "allocation" has two interpretations: one is called "Fixed Allocation" where the allocated quantity of item is ensured and is not used for other requests; the other is "Spare Allocation" where whether a certain quantity of item is available or not is just confirmed. The inventory allocation in MRP is the latter case where the items are allocated to the inventory quantities and released orders (not-yet-delivery items). This is also called Calculating Net Requirements.
Related term: Released Order
Reference：JIT Business Research Mr. Hirano Hiroyuki