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IS-Retail: Reorder Point

Former Member

‎07-01-2008 5:41 AM

0 Kudos

If I use RP type RF, but i leave reorder point blank.

1. Does this mean the reorder point = 0?

2. If the reorder point = 0, does this mean i will never get follow-on documents generated from running replenishment (unless my current stock is negative, because from my understanding, replenishment only creates follow-on documents when the current stock falls below the reorder point)?

Your answer would be a great help.

1 REPLY 1

Former Member

‎07-01-2008 7:11 AM

0 Kudos

Hi,

The following link will help you to understand ROP:

http://help.sap.com/saphelp_45b/helpdata/en/86/37e631f09b11d18ca1080009d10d9a/frameset.htm

In Replenishment article data, you can define a reorder point. As a result, Replenishment only creates follow-on documents when the stock on-hand or - if you are including receipts and issues in the calculation - the expected stock has fallen below the reorder point. The reorder point is used as it is in reorder point planning.

o RP Type (Set in Customizing)

The RP type must be assigned the RP procedure W and a planning method other than 1 (planned by external system). If the RP type is assigned the forecast indicator + (compulsory forecast) or * (optional forecast), the system calculates the target stock dynamically in the replenishment planning run. If the sales forecast is supposed to calculate the reorder point and safety stock automatically, you must set the relevant indicator in Customizing. If you want to plan using a dynamic target stock, you must have previously forecast the sales. For time-phased planning, the "Plan Regularly" indicator must be set.

The following characteristics are provided in the standard system: RP (replenishment planning with static target stock), RF (replenishment planning with dynamic target stock) RR (time-phased replenishment planning with dynamic target stock) and RS (time-phased replenishment planning with static target stock).

o Reorder point

If a reorder point is maintained for time-phased replenishment planning (RR or RS), a combination of reorder point planning and time-phased planning is activated. This means that if the reorder point is not reached outside the cycle, a requirement can be calculated outside the cycle.

Hope this helps you.

Regards,

S.V.ManiKumaar

Source:help.sap.com