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Reorder point planning with external req.

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,


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