Use the Compute Material Requirements screen to plan product requirements by comparing the requested quantity of a list of end parts and their components to existing inventory, order, requisition, and reservation information.

The process plans material requirements in a top-down fashion, exploding the Manufacturing Bill of Material and determining the requirements for each subassembly and component. For each end part, one BOM level at a time, the system determines the new requirements for the part, adds them to existing requirements (including safety stock and inventory requests, if desired), and subtracts current inventory, on-order, and on-requisition quantities. If a shortage is identified, the process can generate a manufacturing order (for make parts) or a purchase requisition (for buy parts) to cover the shortage quantity.