Reorder Point Planning Procedure
You define MRP types in Customizing for MRP in the IMG activity Check MRP types.
- In the material master, you have entered or let the system automatically calculate and enter the values for the reorder point (MRP 1 view) and for the safety stock (MRP 2 view).
Every time a material is withdrawn from the warehouse, the system checks whether this withdrawal has caused stock levels to fall below the reorder level. If this is the case, the system makes an entry in the planning file for the next planning run (see alsoChecking the Planning File).
If a material is returned to the warehouse, the system checks in exactly the same way whether the available warehouse stock exceeds the reorder level again. If this is the case, an entry is made in the planning file, which acts as an indicator for the planning run to delete any unnecessary procurement proposals.
If planned receipts are no longer required due to material returns, for example, then the system will suggest that these receipts should be cancelled. In this case, the MRP controller in cooperation with Purchasing or Production must check whether the purchase order or the production order can be cancelled.
For reorder point planning, the system supports the Fixed lot size and Replenish up to maximum stock level lot-sizing procedures.
You can also use period or optimum lot-sizing procedures for reorder point materials. In this case, you must calculate future requirements using the forecasting functions. The forecast values are then interpreted as requirements.