Reorder point planning with external req.
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?