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Reorder Point Planning
Use
In reorder point planning, procurement is triggered when the sum of plant stock and firmed receipts falls below the reorder point. Features The reorder point should cover the average material requirements expected during the replenishment lead time. The safety stock exists to cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays. Therefore, the safety stock is included in the reorder level. The following values are important for defining the reorder point:
In manual reorder point planning, you define both the reorder level and the safety stock level manually in the appropriate material master. Automatic Reorder Point Planning In automatic reorder point planning, both the reorder level and the safety stock level are determined by the integrated forecasting program. The system uses past consumption data (historical data) to forecast future requirements. The system then uses these forecast values to calculate the reorder level and the safety stock level, taking the service level, which is specified by the MRP controller, and the material's replenishment lead time into account, and transfers them to the material master. Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are continually adapted to the current consumption and delivery situation. This means that a contribution is made towards keeping stock levels low. |
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Reorder Point Planning Procedure
Prerequisites
You define MRP types in Customizing for MRP in the IMG activity Check MRP types.
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Reorder Point Planning with External Requirements
Use
In reorder point planning, an entry is only created in the planning file and the net requirements calculation is only carried out if stock levels fall below the reorder point. To avoid overplanning, sales orders, dependent requirements, reservations and so on are not usually included in the net requirements calculation as these future requirements are already planned with the reorder level. However, to guarantee that the MRP controller is informed of current issues, the system displays sales orders, dependent and manual reservations and so on. In certain circumstances, however, it is necessary to include such external requirements in the net requirements calculation for reorder point materials. Integration The indicator for taking external requirements into account is set in Customizing in the IMG activity Check MRP type for the individual time-phased MRP procedure. Features Sales orders and manual reservations are included in planning during the replenishment lead time. In Customizing you can also enter settings for the respective MRP type, so that
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