Meaning and calculation
A material-resource requirement for consumption is the quantity of materials needed to carry out a specified activity program over a defined period. It is calculated before deciding what portion will be purchased: usable opening balances, internal receipts and external deliveries may cover the requirement. For production, the inputs are output volume, the product structure, consumption norms and assumptions about the yield of acceptable products.
For 100 products at a norm of three kilograms per product, consumption without losses is 300 kilograms. The norm is already defined on the required basis; if it includes technological losses, those same losses must not be added a second time. For several products, requirements for one material are summed in the same units.
Do not confuse consumption with the order quantity
The trap is to identify consumption with the order size. Warehouse inventory changes the requirement for incoming deliveries, but by itself does not reduce the program’s technological material requirement. Before calculating, check that the specification is current, substitutions are permitted and the material belongs to the particular order; past average consumption is not necessarily suitable for new production. Related reading: [inventory and depreciation](/guides/inventory-and-depreciation/).
Sources and review boundaries
Support: **gl-mit-mrp**, **gl-mit-procurement**. The Russian term denotes a management function, not a separate mandatory IFRS line item. The example is editorial; the requirements of a specific contract and accounting treatment must be checked separately.