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8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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SAP AG
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Chapter 2 Reorder Point and Storage Location
Planning
Reorder point planning
Ordering procedure for external procurement
Storage location MRP
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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SAP AG
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Chapter 2 Objectives
you will know the business background for reorder
point planning
you will have learned the reorder point planning
procedure in the SP system !net re"uirements
calculation# lot$si%e calculation&
you will know the options you have in the R'( system
for organi%ing the link between materials planning
and purchasing
you will have learned the functions available in
storage location MRP
)y the end of this chapter*
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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Reorder Point Planning
Replenishment
lead time
Stock Lot si%e
Reorder point
Safety stock
Reorder point Point of delivery +ime
The basis of reorder point planning is the comparison of stock and firmed receipts with the reorder point.
The reorder point should cover consumption quantities during the replenishment lead time.
If stock levels fall below the reorder point, procurement is triggered for the amount of the lot size.
Safety stock is used to cover unplanned requirements during the replenishment lead time. It forms a part of thereorder point stock.
If sales orders and manual reservations are to be included in planning, a separate reorder point procedure isavailable with eternal requirements!.
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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,et Re"uirements -alculation for Reorder Point
Planning
Reorder point
Purchase orders
.irmed planned orders
.irmed purchase
re"uisitions
Order proposal for
lot si%e "uantity
Stock
Shortage
-omparison
" material shortage eists, when total stock plus firmed order proposals is less than the reorder point.
If a material shortage eists, procurement is carried out for the amount of the lot size.
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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Reorder Point Planning* .orward Scheduling
for /xternal Procurement
Today (release date) Delivery date MRP date
Processing time for
prchasing Planned delivery time
Goods receipt
processing time
In forward scheduling, to determine the #$% date &that is, the date by which the material is to be available for
processing', the system starts from the date of the planning run and calculates in the future.
In forward scheduling, starting from today(s date, the system adds the processing time required by thepurchasing department, then the planned delivery time in calendar days and finally the goods receipt processingtime in workdays.
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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SAP AG
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Ordering Procedure for /xternal Procurement
0ork list for
purchasing
Prchaseorder
Plannedorder
Schedlingagreement
!"#"$%
!"&"$%
Prchasere'isition
Manal
Materials PlanningMaterials Planning
Pr"Re'"
Pr"Re'"
Pr"Re'"
Prchasere'isition
Atomatic
)epending on the link between materials planning and purchasing, the work lists of both departments can be
separated.
%lanned orders can also be created for eternal procurement so that the #$% controller can coordinate plannedquantities and dates in materials planning before they are passed on to the purchasing department.
*owever, purchase requisitions can also be created directly in the planning run.
In purchasing, the purchase requisitions created in the planning run can automatically be converted intopurchase orders.
If a scheduling agreement eists for the vendor, schedule lines can also be created directly in the planning run.
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1etermining Source of Supply via Source List
1etermining source of supply1etermining source of supply
Sched2agmt
!"%"$
!"#"$
3uota
arrangements
3uota3uota
arrangementsarrangements
4endor
)* 567* 867
Source list
/xactly one valid
entry for materials planning
Reference to scheduling
agreements and automaticschedule lines allowed
Schedule lines created
during the planning run
Source list
+hen planning eternally procured materials, the source of supply can be determined using the source list or by
quota arrangements.
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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Storage Location MRP !9&
Stock shortage in separately
planned storage location
Stock transfer reservation in plant
Replenishment per stock transfer
between storage locations
Stock transfer
between storagelocations
Plant 9666
Storagelocationsplanned inplant
Storagelocationplannedseparately
Procedure* stock transfer within a plant
In inventory management, the transfer posting to the storage location planned separately is carried out with
reference to a stock transfer reservation.
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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Storage Location MRP !:&
Stock shortage in separately
planned storage location
Procurement directly for separately
planned storage location !in$house
production'external
procurement'consignment&
;oods receipt directly for the separately
planned storage location
Plant 9666Plant 9666
Storage locationsplanned in plant
Storage locationplanned separately
Procedure* separate procurement for the storage location
Procurementand ;R posting
Procurementand ;R posting
The special procurement keys for storage location #$% &eternal procurement, inhouse production, stock
transfer from another plant' are defined in -ustomizing.
In this procedure, the planned order or the purchase requisition contains the separately planned storagelocation.
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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Storage Location MRP !(&
Stock shortage in separately plannedstorage location in plant 9666
Stock transport re"uisition in separatelyplanned storage location in plant9666Release order re"uisition in plant 9:66
Replenishment per stock transferbetween plants
Plant 9666Plant 9666
Stge locs2planned inplant
Stge loc2plannedseparately
(((
Stge locs2planned inplant
Plant 9:66Plant 9:66
Stocktransfer
from anotherplant
Procudure* stock transfer between plants
The special procurement keys for storage location #$% &eternal procurement, inhouse production, stock
transfer from another plant' are defined in -ustomizing.
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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Storage Location MRP !5&
Plant 9666Plant 9666
Stge locs2planned inplant
Storage locationsexcluded from theautomatic planning run
Stock shortages in storage locations
that are excluded from materials
planning are not included in the
planning run
/xcluding the storage location from materials planning
The stocks of the storage locations ecluded from materials planning are not included in plant stock.
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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Chapter 2 Review !9&
8/12/2019 03_LO525_Reorder Point and Store Location Planning.doc
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Chapter 2 Review !:&
stock can be transferred to a storage location from
another plant
a storage location can be completely excluded from
materials planning at plant level
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-hapter : /xercises* Reorder Point Planning
Storage location MRP
ne storage location (***2) for the ne+ ra+ material ,2MM-.. is to /e planned separately" Storage location (***!) that yoalready created in e0ercise ! is sed as the central +arehose"Procrement for storage location ***2 is to /e carried ot asfollo+s1 the prchase re'isition is directly created for the storagelocation as the vendor delivers direct to the storage location andthe goods receipt is also directly posted for this storage location"
Therefore yo have to create storage location ***2 in thematerial master record for the ra+ material ,2MM-.. and yomst set the indicator for storage location MRP" Then yo haveto carry ot the single-item planning rn for the material andorgani3e replenishment for the separately planned storagelocation"
!" Create the ne+ data in the material master record1
4n the material master select1
Material Create special Raw material.
5nter the material nm/er ,2MM-.."5nter the indicator for the indstry sector mechanicalengineering"Select the psh/tton Select view(s) and only select the vie+MRP :1
Select Continueand the screen for the organi3ational levelsappears" 5nter plant !*** and storage location ***2"
4n the section of the screen entitled Storage location MRPenter the MRP indicator for planning storage locationsseparately" Select 650ternal procrement7 for the specialprocrement type maintain a reorder point of 8** pieces and
a replenishment 'antity of 2*** pieces"9hat is the prpose of the reorder point for a material planned
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sing reorder point planning:
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
Save the material master record"
2" Carry ot the planning rn for the material"
Access the men for materials planning1
Logistics Materials management Materials planning MRP
To carry ot the planning rn select1
Planning run Sng-item, sng-level.
Carry ot the planning rn sing creation indicator 2 (prchasere'isitions in opening period other+ise planned orders)" AnMRP list is al+ays to /e created for the planning reslts"
After having e0ected the planning rn display the MRP listand discss the reslts" Display the te0ts for the e0ceptionmessages" To do this position the crsor on the e0ception
indicator and select1
EditDispl.ecept.message.
8" Carry ot replenishment for storage location ***21
rders are made directly for storage location ***2" To do thisconvert the prchase re'isition in the MRP list into aprchase order"
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Position the crsor on the prchase re'isition and select1
Environment Convert Pur.re!. pur.ord.
4n the initial screen for creating prchase orders enter theprchasing organi3ation !***" The material is to /e orderedfrom vendor !*88 as this vendor provides the fastest service"
Transfer the data of the prchase re'isition" The prchaseorder already contains the target storage location"
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Chec= any changes in the stoc=>re'irements list"
9hat +old the reslt have /een if the goods receipt had/een completely posted:
;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;
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-hapter : Solutions* Reorder Point Planning
Storage Location MRP
+o 92 0hat is the purpose of the reorder point for amaterial planned using reorder point planning=The reorder point shold cover the average consmptionin the replenishment lead time" 4f the stoc= level falls/elo+ the reorder point the material mst /e replenishedfor the amont of the lot si3e"
+o :2 0hat would the result have been if the goodsreceipt had been posted for the complete "uantity=As only half of the 'antity +as posted the prchaseorder remains - redced /y the goods receipt 'antity"Plant stoc= +as also increased /y the goods receipt'antity"4f the goods receipt had /een for the complete 'antityplant stoc= +old have /een increased /y the completeprchase order 'antity and the prchase order +old nolonger /e visi/le in the stoc=>re'irements list"
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