Reorder point planning with external req.

[Former Member]

Hello everyone,

I'm new to SAP and I was wondering something about material planning - Reorder point planning with external req.

If you customize in SAP, so that external req. are included (that is Sales orders/ Planned orders), when does SAP signal that material has to be purchased? Is it when stock level or inventory position (= sum of on-hand inventory and inventory on order minus backorders) has reached the reorder point?

Thank you,

Edin

[JL23]

Please read OSS note 51576 - MD01: MRP type V1/V2: reorder point w. requirements

It gives you an example and explanation as well.

[csaba_szommer]

SAP online help:

http://help.sap.com/erp2005_ehp_05/helpdata/EN/37/8bbbd26a8111d3b4ed0004ac160649/frameset.htm

In reorder point planning, an entry is only created in the planning file and the net requirements calculation is only carried out if stock levels fall below the reorder point. 

So, if stock level (calculated) reaches or goes below the reorder point. System will create the proposal as a result of MRP run (so, even if stock level goes below the reorder point, system will create the proposal only after MRP run).

Edited by: Csaba Szommer on May 11, 2011 8:14 PM

[Former Member]

Refering to that same document:

SAP online help:

http://help.sap.com/erp2005_ehp_05/helpdata/EN/37/8bbbd26a8111d3b4ed0004ac160649/frameset.htm

It says:

+"In certain circumstances, however, it is necessary to include such external requirements in the net requirements calculation for reorder point materials...

...The indicator for taking external requirements into account is set in Customizing in the IMG activity Check MRP type for the individual time-phased MRP procedure...

...Sales orders and manual reservations are included in planning during the replenishment lead time. In Customizing you can also enter settings for the respective MRP type, so that

..sales orders and manual reservations are included in planning not just during the replenishment lead time but during the whole horizon.

..alongside sales orders and manual reservations various other requirements are taken into account in the material requirements planning. "+

Help me interpret this, it's important because we don't get second chances if we interpret things wrong 😃

If I include external req. in Customizing, does that mean that planned orders are also considered when calculating net requirements?

Is purchase proposal triggered when 1) or 2) is equal or below reorder point

1) current stock level + receipts - planned consumption (planned/sales orders)?

or as

2) current stock level + receipts?

Thanks!

[Former Member]

If I understand your requirement correctly, MRP with reorder based planning consider your Min/Max stock level to generate Planned Order or Purchase Requisitions. MRP also considers exisitng sales order etc in the calulation of Demand vs Supply so if your stock falls below min level, system triggeres Plan Order or Purchase Requisition based on the settings in Material Master.