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Monday, May 17, 2021

Question no 3840 : Automatic Re-Order Point

In SAP MM/PP as at ECC6.0 EhP6, which of the following variables are required in the Material Master for automatically calculating Re-Order Point ?

(more than one answers)

A)  Service Level.
B)  Safety Stock.
C)  Consumption Values.
D)  Replenishment Lead Time.
E)  Opening period.
.

Answers: A, B, C, D

The following values are important for defining the reorder point:
    Safety stock
    Average consumption
    Replenishment lead time
The following values are important for defining the safety stock:
    Past consumption values (historical data) or future requirements
    Vendor/production delivery timelines
    Service level to be achieved
    Forecast error, that is, the deviation from the expected requirements

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