The formulaGross requirement = per unit BOM quantity × planned units; net requirement = gross − stock on hand
- Gross is what the run consumes. Net is what you buy.
- For multi level BOMs, calculate the sub assembly first and feed its requirement into the parent.
- Add scrap allowance per line where losses are predictable.
Worked example
A candle BOM lists 200 g wax, 20 ml fragrance, 1 wick and 1 jar per unit. The plan is 150 units. Stock is 18,000 g wax, 900 ml fragrance, 400 wicks and 120 jars.
Result. Net requirements are the purchase order. Wicks appear in the plan but not in the order, because stock already covers them.
MRP without the ERP
Material requirements planning has a reputation for complexity, but the arithmetic at the heart of it is a multiplication and a subtraction per BOM line. Full MRP systems add scheduling, work orders, routings and multi site logistics on top, which is why they cost what they cost.
A small producer with a handful of products usually needs the arithmetic and the alerts, not the scheduling layer. That is the gap Makeable is built for.
Keeping BOM data honest
Requirements planning is only as accurate as the BOM. Record quantities in the unit you purchase, keep one unit per material across all recipes, and update the BOM when the recipe changes rather than remembering the difference.
Version the BOM if the recipe evolves, so a run planned last month can still be explained by the data that produced it.
Common mistakes
- Confusing gross with netBuying gross requirements ignores stock and doubles your inventory over a few runs.
- Omitting packaging and consumablesThey belong on the BOM. If a run cannot ship without them, they are materials.
- Stale unit conversionsA supplier switching from 500 g to 1 kg packs changes nothing in the BOM, but it changes stock entry. Keep the two separate.
How Makeable automates this
Makeable is production capacity and inventory planning software for small businesses that make physical goods from recipes or bills of materials. It stores your materials and recipes, keeps stock current as orders arrive, and runs the calculation on this page continuously rather than on request, so the answer to "can I make this?" is always current.
You can start on the free plan with three products and fifteen materials, see how the production engine works, or compare plans and limits.
Common questions
What is the difference between gross and net requirements?
Gross requirement is total consumption for the planned quantity. Net requirement subtracts stock on hand, and is the amount you actually need to buy.
Can I use a BOM calculator instead of MRP software?
For a small producer with a few products and single level BOMs, yes. Once you need routings, work orders and multi site scheduling, a full MRP system becomes worth its cost.
How does Makeable use bills of materials?
Makeable stores each product's BOM or recipe, keeps material stock current, and continuously recalculates capacity, bottlenecks and net requirements as orders arrive.
For information and estimates only. Makeable's formulas, batch limits and margin calculations are mathematical estimates based on your inputs. They are not certified accounting, financial, pricing or tax advice. You are solely responsible for setting your own wholesale and retail prices, ensuring profitability, and checking cost calculations before committing money.