What is Requirement?
Requirement
Quantity of materials needed to make it as planned.
What it means
The required quantity is the product quantity to be made multiplied by the quantity in the BOM. If 1 pen pen contains 1 piece of refill, then 200 pen pens requires 200 pieces of refill.
If you subtract the inventory you have and the incoming quantity from the required quantity, you will get the quantity you actually need to buy. The former is called the total requirement, and the latter is called the net requirement.
At the pen factory
The plan for day 8 is black ballpoint pen 200 pens. The required quantity of black refill is 200 pieces, and the packaging box is 20 pieces, as 1 piece per 10 pens. Black refill has 140 pieces in stock, so you need to get 60 more pieces.
Why it matters
If you know the required quantity, you can tell whether there is enough inventory and, if so, how much the shortage will be.