What is 'reorder point' in SAP MA-SMOPS - SmartOps?

reorder point - Overview

• Component: MA-SMOPS

• Component Name: SmartOps

• Description: A calculated threshold used in consumption-based production planning to trigger replenishment of the associated item whenever the total amount of on-hand stock and outstanding planned receipts drops below the threshold.

reorder point - Details

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  Key Concepts: 
  Reorder point is a term used in SAP's MA-SMOPS SmartOps module. It is a point at which the inventory of an item needs to be replenished in order to maintain the desired level of stock. The reorder point is determined by taking into account the lead time for ordering and delivery, the desired safety stock level, and the expected demand for the item. 
  
  How to use it: 
  The reorder point can be set manually or automatically in SAP's MA-SMOPS SmartOps module. To set it manually, you will need to enter the desired safety stock level, lead time for ordering and delivery, and expected demand for the item. The system will then calculate the reorder point based on these inputs. To set it automatically, you can use the system's built-in algorithms to determine the optimal reorder point based on historical data. 
  
  Tips & Tricks: 
  It is important to keep in mind that the reorder point should be set based on your specific business needs. For example, if you have a high demand for an item, you may want to set a higher reorder point than if you have a low demand for that item. Additionally, it is important to consider any seasonal fluctuations in demand when setting your reorder point. 
  
  Related Information: 
  The reorder point is closely related to other concepts such as safety