Enter the gross requirements (units) and the stock in hand at the end of the previous period (units) into the Net Requirements Calculator. The calculator will evaluate the Net Requirements.

## Net Requirements Formula

The following two example problems outline the steps and information needed to calculate the Net Requirements.

NR = GR - SIH

Variables:

- NR is the Net Requirements (units)
- GR is the gross requirements (units)
- SIH is the stock in hand at the end of the previous period (units)

To calculate the net requirements, subtract the stock in hand at the end of the previous period from the gross requirements.

## How to Calculate Net Requirements?

The following steps outline how to calculate the Net Requirements.

- First, determine the gross requirements (units).
- Next, determine the stock in hand at the end of the previous period (units).
- Next, gather the formula from above = NR = GR – SIH.
- Finally, calculate the Net Requirements.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

gross requirements (units) = 500

stock in hand at the end of the previous period (units) = 300

NR = GR – SIH** **= ?