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definition of safety stock, re-order point

definition of safety stock, re-order point, lot size and replenishment lead time. how they are calculated in consumption based planing related to MM?

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hi,

Safety stock is the stock which is used when there are delayed delieveries in your plant...

So called safety stock...

Its value you assign in MRP view of MMR...

Reorder point is point till which you want to maintain stock level constantly in your warehouse....whenever the reorder point is greater than the Stock total....the procurement is hit and the system generates a PR, PO etc depending on the setting in the MRP...

Lot size- it is total req. in numbers for which you want to hit the procurement....

Replenishment lead time:Total time for the in-house production or for the external procurement of a product. In in-house production, the replenishment lead time is determined to cover all BOM levels.

Regards

Priyanka.P

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