What is reorder point in sap?



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SAP has the following quotation on the reorder level/reorder point: “The reorder level (also known as the reorder point) is made up of the sum of the safety stock plus the expected average material consumption within the replenishment lead time. In SAP reorder point planning, a reorder point is obtained by calculating a sum of plant stock and firmed receipts. Hi All, I am really confused with the terminology of REORDER POINT and SAFETY STOCK. In nutshell net requirements calculation is triggered when stock levels falls below a reorder point or by forecast requirements calculated from past. You have set an MRP type for reorder point planning in the material master (MRP 1 view). Have you ever wondered why planners tend to rather use a safety stock with MRP Type 'PD' to buffer variability, as opposed to a reorder.



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