Course contents
Practitioner · Course 3: Material Requirement Planning · Lesson 5 of 5

Building a complete material requirement plan for an order

Level: PractitionerTime: 45 minutesOrder used: An illustrative domestic order (Cedar & Co.), following Order A's own methodTool: Material requirement planner
This lesson assembles the four previous lessons' methods into one complete material requirement plan, using an illustrative domestic Make to Stock order for Cedar & Co. so the plan can show every stage, including a shortfall, in one place. All quantities are illustrative teaching figures, following the same method Order A's own fixed figures established earlier in this course.
Domestic brandCedar & Co.
Forecast quantity6,000 pieces (illustrative)
Bare material requirement1,080 kg (illustrative)
Safety stock, 10%108 kg (illustrative)
Total planned quantity1,188 kg (illustrative)
Mill's confirmed quantity1,050 kg (illustrative), a 138 kg shortfall
02Opening

This page teaches a merchandiser or planner how to bring every skill in this course together into one complete material requirement plan for a whole order, from the bill of materials to a confirmed, shortfall-checked delivery. It is for anyone who must assemble, not just calculate, a full plan before releasing every purchase order an order needs. It mainly teaches a decision: whether a plan, taken as a whole, is ready to release.

At work, a planner rarely uses this course's four earlier skills one at a time in isolation. A real order needs its bill of materials turned into a material requirement list, any shared-fabric orders combined, lead time and safety stock added, and the mill's confirmation checked against the plan, all before a single purchase order safely goes out. Without assembling all four steps into one plan, a planner can complete some steps correctly and still miss one, leaving the order exposed exactly where the missed step would have caught a problem.

This lesson uses an illustrative domestic order for Cedar & Co. to show every stage of a complete material requirement plan working together, including a shortfall, in one place, following the same method Order A's own fixed figures established in the earlier lessons of this course.

03Before you start

You need: all four earlier lessons of this course: building a material requirement list (13.3.1), combining orders sharing a fabric (13.3.2), adding lead time and safety stock (13.3.3), and spotting a shortfall (13.3.4).

By the end of this lesson you can:

  • Assemble a bill of materials, lead time, safety stock and a shortfall check into one complete material requirement plan.
  • Recognise the order in which these four steps are normally carried out.
  • Decide whether a complete plan is ready to release as purchase orders, or needs one more step corrected first.
  • State what each of the four steps would have caught, had it been skipped.
  • Use this course's material requirement planner's full workbook to build a complete plan with live formulas.

Not covered here: any single step in isolation, each already covered in Lessons 13.3.1 to 13.3.4; costing the materials once quantities are confirmed (Track 1's costing course); booking factory capacity around a confirmed material delivery (Track 11).

04Key terms
TermMeaning
Bill of materialsThe list of every material and cost component in a garment, with its cost, used to build up the FOB price.
Total fabric requirementThe full quantity of fabric an order needs, calculated from per-piece consumption times order quantity.
Lead timeThe total time from a confirmed order to the goods reaching their destination.
Safety stockAn extra quantity of material planned on top of the bare requirement, to cover ordinary variation in a supplier's own delivery or a mill's own production run without stopping the cutting room.
Material requirement listThe full list of every material an order needs, each in its own unit and quantity, built line by line from the order's bill of materials and its order quantity.
05Teaching
The rule

A complete material requirement plan carries a bill-of-materials-based requirement, lead time, safety stock and a shortfall check together, in that order, before any purchase order is released.

Each of this course's earlier lessons teaches one step; a complete plan is what results once all four are carried out on the same order, in sequence: the bare requirement first, from the bill of materials; any combining with another order sharing the same fabric next; lead time and safety stock added on top of the resulting total; and finally the mill's actual confirmation checked against that total for any shortfall. A plan missing any one of these four steps is not yet complete, however carefully the other three were done.

1. Bare requirementfrom bill of materials2. Combineshared-fabric orders3. Lead timeand safety stock4. Shortfall checkagainst confirmation
A complete plan carries four steps in order. Skipping any one leaves the plan exposed exactly where that step would have caught a problem.
What you meet in real life

A complete plan's four steps stay the same, but which step actually surfaces a problem differs order by order.

What can differThe shapes you meetWhy it matters
A plan with no issue at any stepA straightforward order whose bare requirement, combined total (if any), and mill confirmation all match cleanlyThe plan is ready to release as soon as all four steps are recorded, with nothing further to correct
A plan needing a combined purchase orderTwo orders sharing a fabric, as in Lesson 13.3.2, folded into one plan before lead time and safety stock are addedStep 2 changes the total that steps 3 and 4 are then carried out against
A plan surfacing a shortfall lateA shortfall found only at step 4, after lead time and safety stock were already calculated on the assumption of a full deliveryThe earlier three steps still stand; only the final delivery quantity, and possibly the cutting date, needs revising
Export MTO planOrder A's own fixed figures carried through the same four steps, checked against a confirmed export delivery dateA shortfall here risks a fixed, contracted date agreed with Northline Apparel
Domestic MTS planCedar & Co.'s illustrative order carried through the same four steps, checked against its own forecast-based scheduleA shortfall here delays the brand's own shop delivery rather than a buyer's contracted date, but the four-step method is identical
The case we follow

Cedar & Co.'s planner assembles a complete material requirement plan, catching a shortfall at the final step before releasing purchase orders.

Cedar & Co.'s illustrative order needs its bare fabric requirement calculated from its bill of materials, then lead time and safety stock added, before its mill's actual confirmation is checked for any shortfall. Carrying all four steps through in order, rather than stopping once the bare requirement and safety stock look complete, is what lets Cedar & Co.'s planner catch a shortfall at the final step, with time left to act on it.

The same four steps apply equally to Order A's own export figures, even though Order A's own fixed plan carries no shortfall to work through in this course. A planner moving between an export Make to Order order and a domestic Make to Stock order does not need two different methods; the same bill of materials, lead time, safety stock and shortfall check apply to both, only the underlying figures and who is waiting on the delivery date differ.

The worked number

Cedar & Co.'s illustrative order carried through all four steps: 1,080 kg bare requirement, 108 kg safety stock, 1,188 kg planned, and a 138 kg shortfall against the mill's confirmation.

This example is entirely illustrative, following the method Order A's own fixed figures already established in this course. Step 1, the bare requirement:

0.18 × 6,000 = 1,080

Step 3, safety stock at 10% of the bare requirement:

1,080 × 0.10 = 108

Step 3 continued, the total planned quantity:

1,080 + 108 = 1,188

Step 4, the shortfall against the mill's actual confirmation of 1,050 kg:

1,188 − 1,050 = 138

All four steps, worked through in order on this course's material requirement planner, show a complete plan of 1,188 kg with a 138 kg shortfall still to act on before cutting, rather than a plan that stops at step 3 and assumes the mill will confirm the full amount.

StepKilograms1. Bare requirement1,0803. Safety stock (10%)1083. Total planned quantity1,1884. Shortfall against confirmation138
Every step's own figure feeds the next. The bare requirement sets the base for safety stock, and the resulting total is what the final shortfall check compares against the mill's confirmation.
The method

Follow four steps, in order, to build a complete material requirement plan.

  1. Build the bare material requirement from the order's bill of materials, as in Lesson 13.3.1, combining it with any other order sharing the same fabric, as in Lesson 13.3.2.
  2. Add lead time and safety stock on top of the resulting total, as in Lesson 13.3.3, to get the total planned quantity.
  3. Check the mill's actual confirmed quantity against the total planned quantity as soon as it arrives, as in Lesson 13.3.4, to find any shortfall.
  4. Release every purchase order only once all three previous steps are recorded and any shortfall has a decision attached to it.
The trap

A common mistake is treating the plan as finished once safety stock is added, without carrying it through to the final shortfall check against the mill's actual confirmation.

A common mistake is stopping the planning work once lead time and safety stock are calculated, since the plan already looks complete and carefully built at that point. A total planned quantity of 1,188 kg is only a target until the mill's own confirmation is checked against it; assuming the mill will simply deliver the full planned quantity skips the one step, the shortfall check, most likely to catch a real problem before cutting.

06In plain words

This lesson brings everything in this course together into one full plan. First, work out how much material is needed from the garment's own ingredient list. Second, if another order needs the same fabric, add the two together. Third, add extra time for the mill to actually make it, and a small extra amount in case the mill's own output falls slightly short. Fourth, once the mill actually confirms what it can deliver, check that confirmed amount against the plan, because the mill's real answer can still be less than what was asked for. Only once all four of these checks are done is a plan actually finished and ready to act on.

07Quick check
  • A complete material requirement plan carries all four steps: bare requirement, combining (where relevant), lead time and safety stock, and a shortfall check.
  • Each step's own figure feeds directly into the next step's calculation.
  • A plan is not finished once safety stock is added; the final shortfall check against the mill's actual confirmation still has to happen.
  • The same four-step method applies to an export Make to Order plan and a domestic Make to Stock plan alike.
  • A shortfall found at the final step still needs a decision, just as in Lesson 13.3.4.
  • Release purchase orders only once every step is recorded, not once the plan merely looks complete.
08Workplace scenario

Omar's illustrative domestic order needs a complete material requirement plan before any purchase order goes out. Omar's planner has already built the bare requirement and added safety stock, and now waits on the mill's confirmation before deciding whether the plan is ready.

  • Step 1: bare requirement, 0.18 kg per piece for 6,000 pieces, gives 1,080 kg.
  • Step 3: safety stock at 10% gives 108 kg, for a total planned quantity of 1,188 kg.
  • Step 4: the mill confirms only 1,050 kg, less than the total planned quantity.
Omar's own instruction to his planner. "Don't release the trim purchase orders until the fabric side of the plan is fully checked against what the mill actually confirmed."

Is Cedar & Co.'s material requirement plan complete and ready to release, once safety stock has been added but before the mill's confirmation is checked?

Show decision

No, the plan is not yet complete. Steps 1 through 3 are done correctly, giving a total planned quantity of 1,188 kg, but step 4, checking the mill's actual confirmation against that total, has not yet happened. Once checked, the mill's 1,050 kg confirmation leaves a shortfall of 138 kg (1,188 minus 1,050), which needs a decision, sourcing a top-up quantity or adjusting the cutting date, before Omar's planner can safely release every purchase order the order needs. Following Omar's own instruction, the trim purchase orders should also wait until the fabric side of the plan is fully resolved, since a change to the cutting date affects every material on the order, not only the fabric.

09What it costs

A complete four-step plan costs only the planner's own time to carry out, since every step reuses figures already calculated earlier in the same process. Skipping the final step, and discovering the 138 kg shortfall only once fabric physically arrives, costs far more.

138 × 5.60 = 772.80

The illustrative value, in USD, of the missing 138 kg of fabric at Order A's own fixed fabric price of USD 5.60 per kg (section 7), reused here to illustrate the shortfall's scale within the full plan, not a claimed cost for Cedar & Co.'s own fabric.

Beyond the fabric's own value, an incomplete plan that skips the final check risks the same cutting-room delay covered in Lesson 13.3.4, now compounded by however much of the rest of the order, trims, sewing capacity and shop delivery, was already scheduled around a fabric delivery that never fully arrived.

10Working template

The Material requirement planner (this course's workbook) brings together every sheet from this course's earlier lessons, "Bill of Materials to Requirement," "Combine Orders," "Lead Time and Safety Stock," and "Shortfall Check," into one "Complete Plan" summary sheet, reading each step's own result forward into the next, automatically, as live formulas.

StepIllustrative Cedar & Co. order (filled in)Your order
1. Bare requirement1,080 kg
2. Combined with another order?No
3. Safety stock (10%) and total planned108 kg → 1,188 kg
4. Mill's confirmation and shortfall1,050 kg → 138 kg shortfall
Ready to release?Not yet; shortfall needs a decision

Download the Material requirement planner from the course page and carry your own order through all four steps in the second column.

Download the Material requirement planner (Excel)

11Check yourself

1. What are the four steps of a complete material requirement plan, in order?

2. An illustrative plan's total planned quantity is 1,188 kg and the mill confirms 1,050 kg. What is the shortfall, and is the plan ready to release?

3. A plan has completed steps 1 through 3 correctly, with a total planned quantity calculated. Why is it still not a complete material requirement plan?

12Glossary
ENARFRTRMeaning
Bill of materialsقائمة الموادNomenclatureMalzeme listesiThe list of every material and cost component in a garment, with its cost, used to build up the FOB price.
Total fabric requirementإجمالي احتياج القماشBesoin total en tissuToplam kumaş ihtiyacıThe full quantity of fabric an order needs, calculated from per-piece consumption times order quantity.
Lead timeالوقت الإجمالي للتنفيذDélai de productionTeslim süresiThe total time from a confirmed order to the goods reaching their destination.
Safety stockمخزون الأمانStock de sécuritéEmniyet stoğuAn extra quantity of material planned on top of the bare requirement, to cover ordinary variation in a supplier's own delivery or a mill's own production run without stopping the cutting room.
Material requirement listقائمة احتياج الموادListe des besoins en matièresMalzeme ihtiyaç listesiThe full list of every material an order needs, each in its own unit and quantity, built line by line from the order's bill of materials and its order quantity.
13Next

Course complete

This is the final lesson of Course 3 (Material Requirement Planning). You have now built a complete material requirement plan from a bill of materials through to a checked, shortfall-free delivery. Back to the course map

14Ladder

RecognizeName all four steps of a complete material requirement plan, in order.
ConnectSee how each step's own result feeds the calculation that follows it.
CompareTell a plan that stops after safety stock apart from a genuinely complete plan that also checks the mill's confirmation.
DecideConfirm whether a complete plan is ready to release, or whether a shortfall still needs a decision first.