In MRP processing, calculating net requirements for each period includes an allowance for safety stock.Multiple ChoiceFalseTrue

The statement is True.

In Material Requirements Planning (MRP) processing, calculating net requirements indeed includes an allowance for safety stock. Safety stock is a buffer inventory that protects against uncertainties in demand and supply, such as delays in materials delivery or unexpected increases in demand.

When calculating net requirements for each period, the total forecasted demand is adjusted by subtracting the available inventory on hand and any scheduled receipts. Additionally, safety stock levels are incorporated into this calculation to ensure that there is enough inventory to meet demand variations.

Thus, the formulation for net requirements can be expressed as follows:

$\text{Net Requirements} = \text{Forecasted Demand} - \text{Available Inventory} + \text{Safety Stock}$

This comprehensive approach allows companies to manage their inventory effectively and minimize the risk of stockouts while preparing to meet fluctuating demand with a safety margin.