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MRP glossary TOP > Inventory Control > Book Inventory

Book Inventory

Theoretical Inventory

It refers to the inventory on the ledger sheet where the inventory data is recorded, and is also called Theoretical Inventory. In addition, it is called Book Stocktaking to confirm the balance of this Book Inventory. In performing Calculating Net Requirements, the allocation calculation is performed based on the stock quantity of the Book Inventory in MRP.  It is crucial to reduce the difference between the book inventory and the physical inventory and to increase the inventory accuracy, in order to increase the MRP's planning accuracy.


Antonyms: Actual Inventory

Reference:JIT Business Research Mr. Hirano Hiroyuki

Average Cost Method | Inventory Control | Book Stocktaking