What is Groff reorder procedure in SAP PP-MRP - Material Requirements Planning?

SAP Term: Groff reorder procedure

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A procedure for lot-size calculation in materials planning with optimization of the sum of setup costs plus storage costs optimum lot-sizing procedure. Starting from a certain period, the system stores grouping requirements in a lot until the increase in the average storage costs for each period is larger than the decrease in the lot size independent costs for each period.

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• Key Concepts: 
  The Groff reorder procedure is a feature of SAP's Material Requirements Planning (MRP) component. It is used to determine the optimal order quantity for a given material, taking into account the current stock level, lead time, and other factors. The goal of the Groff reorder procedure is to minimize inventory costs while ensuring that the material is available when needed.
  
  How to use it: 
  The Groff reorder procedure can be used in SAP's MRP component by setting up a reorder point and a reorder quantity. The reorder point is the stock level at which an order should be placed, and the reorder quantity is the amount of material that should be ordered. The system will then calculate the optimal order quantity based on the current stock level, lead time, and other factors.
  
  Tips & Tricks: 
  When setting up the Groff reorder procedure, it is important to consider all relevant factors such as lead time, safety stock levels, and demand fluctuations. It is also important to review the results of the calculation regularly to ensure that they are still valid.
  
  Related Information: 
  For more information on SAP's MRP component and the Groff reorder procedure, please refer to SAP's official documentation or contact your local SAP support team.