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Monday, March 18, 2013

Question no 1854 : Re-Order Point Planning

In SAP MM ECC6.0, elements that make up the re-order planning MRP calculations are the following except which of the following ?

(only one answer)

(A)  Replenishment lead time
(B)  Safety stock
(C)  Average expected consumption
(D)  Replenishment lot size
(E)  BOM explosion indicator
.

2 comments:

  1. The ‘Re-Order Point’ as a Consumption Based Planning material uses a re-active planning concept that monitors the level of inventory that triggers material procurement when needed. Once the inventory falls below this level, the system creates a replenishment in the form of planned order or purchase requisition.

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  2. In SAP, basically there are two form of CBP for Re-order Point:
    (1) Manual Re-Order Point
    . Re-Order Level is predetermined in MRP view
    . Safety stock is optional
    . Replenishment lead time is necessary
    . Replenishment lot size usually not "EX"
    (2) Automatic Re-Order Point
    . Re-Order Level calculated by system
    . Both the safety stock and consumption history is needed for the calculation of the Re-Order level by the system
    . Replenishment lead time is necessary
    . Replenishment lot size usually not "EX"

    However, one must note that the fine-tuning possibilities of setup Re-Order level is available in SAP. The above is a generic method.

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