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  Reorder Point Method

Use

If the available stock in the location (sum of stock and fixed receipts) is below the reorder point at the time of planning, the system groups together the quantities of the uncovered requirements that are within the target days’ supply. The system must cover this total requirements quantity with one or more receipts. The requested availability date of the receipts is the requirements date of the first uncovered requirement. For products produced in-house, the system considers the assembly scrap in the total procurement quantity.

You can only use the reorder point method for the standard heuristics for planning standard lots , but not for the actions for covering dependent requirements immediately.

Note Note

You can only use fixed lot sizes or lot-for-lot order quantities for these actions .

End of the note.

Prerequisites

In order that the system uses this lot-sizing procedure,

  • You must have defined the reorder point method 2 at the place relevant to the application (for example, location product master or heuristic settings)

  • In the location product master on the Lot Size tab page you must have specified a reorder point under Procedure and a target days’ supply under Quantity/Date Determination

Features

You can also plan using minimum lot size , maximum lot size , and rounding . The system processes the total procurement quantity within the target days’ supply according to these criteria.