GIFSQ Tools · Module 18 — Manufacturing, Costing & Supply Chain · Tool 353 of 500
Turn a demand forecast into a purchase order: net off the stock on hand and the orders already placed, add the safety stock, then round the order up to the supplier minimum order quantity.
Try sample values — fills the form with the worked example below.
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Net requirement (units)
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Order quantity (units)
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Rounded up by (units)
Equation: Net requirement = demand − stock on hand − already on order + safety stock, floored at 0. Order quantity = net requirement rounded up to the next multiple of the minimum order quantity.
Method: Purchase-order netting (MRP logic, Tool 343 applied to buying): what is needed, less what is held, less what is already coming, plus the buffer — then rounded up to the supplier minimum order quantity so the order is accepted.
Assumptions: the demand figure is for one ordering period; stock on hand is usable stock; the minimum order quantity is the supplier rule for this item.
Limitations: rounding up to the minimum order quantity buys extra stock — the excess is shown so it can be checked against storage and expiry; the tool does not split an order across suppliers.
Rounding: quantities as whole units; intermediates unrounded.
This is a calculation aid, not a laboratory report — confirm against your accredited method before citing a value.
Method: Purchase-order netting (MRP logic, Tool 343 applied to buying): what is needed, less what is held, less what is already coming, plus the buffer — then rounded up to the supplier minimum order quantity so the order is accepted.
Assumptions: the demand figure is for one ordering period; stock on hand is usable stock; the minimum order quantity is the supplier rule for this item.
Limitations: rounding up to the minimum order quantity buys extra stock — the excess is shown so it can be checked against storage and expiry; the tool does not split an order across suppliers.
Rounding: quantities as whole units; intermediates unrounded.
This is a calculation aid, not a laboratory report — confirm against your accredited method before citing a value.
Worked example: Demand 2,000, on hand 400, on order 300, safety stock 200, minimum order 500: net = 2,000 − 400 − 300 + 200 = 1,500; order = 1,500 (already a multiple of 500; rounded up by 0).
Enter values above to see results.
When the rounded-up excess is large, ask the supplier about a smaller pack size before accepting the extra stock. Tool 353 of 500 — GIFSQ
