What is reorder point in SAP IS-R - SAP for Retail?

SAP Term: reorder point

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail Control parameter for reorder point planning and Replenishment. Reorder point planning: If the stock on-hand of a material falls below this quantity, an entry is automatically set in the MRP file for the material. Replenishment: If the stock on-hand of a material falls below this quantity, the Replenishment process automatically triggers the procurement of the material. If no reorder point has been defined, procurement is triggered as soon as the stock falls short of the target stock.

Smart SAP Assistant

• Key Concepts: 
  Reorder point is a feature of the IS-R SAP for Retail system that helps retailers manage their inventory. It is a predetermined quantity of an item that triggers an order to be placed for more of that item. This helps retailers maintain a certain level of stock and avoid running out of items. 
  
  How to use it: 
  Reorder point can be set up in the IS-R SAP for Retail system. The user can specify the quantity of an item that will trigger an order to be placed. The user can also specify the supplier from which the order should be placed, as well as any other relevant information such as delivery time and payment terms. 
  
  Tips & Tricks: 
  It is important to set the reorder point at a level that is appropriate for the item in question. If it is set too low, there may not be enough stock on hand to meet customer demand. If it is set too high, there may be too much stock on hand, leading to unnecessary costs. 
  
  Related Information: 
  Reorder point is just one of many features available in the IS-R SAP for Retail system. Other features include inventory management, pricing management, and customer relationship management. All of these features work together to help retailers manage their business more efficiently and effectively.