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MRP 1 & 2 screen of Masterial master

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Dear all,

Please distinguish me between the terms with examples:

Manual reorder point planning and maximum stock level and safety stock.


phalgun Patel

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Dear Patel,

In the warehouse,we would always want few materials to be avaliable all the time to meet the requirements of production/sales orders etc.

So we group these materials and based on the last few months consumption data we arrive and define few terms which are nothing but safety stock,reorder point etc.

All such items will be part of consumption based planning.We can execute this process in two different ways:

1.Manual reoprder point planning

2.Automatic reorder point planning

For manual reorder,we should assign the MRP type as VB or V1 under the MRP view of material master.

Then we should enter the reorder point(this is based on the previous consumption data),safety stock and max stokc level in the master.

Reorder point refers to the stock level which alerts you to start the procurement of the materials so that there is no shortage of materials to meet the requirement.

Safety stock again refers to the buffer stock which would suffice during any delays in procuring the materials.

Maximun stock level defines the total quanity of stock which is permissable to be stored in the plant.


Joseph Charles Vaikathussery

Answers (1)

Answers (1)

Active Contributor
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Reorder point is used only In re-order point based planning/MRP. The Re-order point can be manual or automated entry.

The MRP types like VB,V1 ,.. uses Reorder point during MRP. Safety stock quanity is also included when Re-order point is calculated. During the re-order point based planning whenever the stock level touches the re-order point the Procurement proposals are generated based on the lot size procedures.

Safety stock is used not only in MRP calculation but also in other areas like Availability check. Safety stock is considered as the requirement quanity in PD and in MPS types. if there is no PIR or customer requirements and if still the stock is below the safety stock level procurement proposals are generated. The ratio of safety stock to be used in calculation can be set in the configuration. The Safety stock can be included or excluded in availability check calculations based on the settings maintained for the checking rule- avialbilty check control.

I hope i answered to your question.