Replenishment: Using a Reorder Point
Use
In Replenishment article data, you can define a reorder point. As a result, Replenishment only creates follow-on documents when the stock on-hand or - if you are including receipts and issues in the calculation - the expected stock has fallen below the reorder point. The reorder point is used as it is in reorder point planning.
Example
The following example illustrates the effects of using a reorder point in Replenishment. You have defined a reorder point of 10 pieces. The Replenishment run generates purchase orders as follow-on documents. Store stock refers to the physical stock figure in a store.
Transaction |
Stocks |
Target stock |
Requirement |
Physical stock |
Starting point |
100 |
100 |
100 | |
Goods issue 80 |
20 |
100 |
20 | |
Replenishment run |
20 |
100 |
0 |
20 |
Goods issue 15 |
5 |
100 |
5 | |
Replenishment run |
5 |
100 |
95 |
5 |
Purchase order created |
5 |
100 |
5 | |
Goods receipt 95 |
100 |
100 |
100 |