What is manual reorder point planning in SAP PP-MRP - Material Requirements Planning?

SAP Term: manual reorder point planning

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A procedure in consumption-based planning. If the available stock level is below the reorder point, an entry is made in the planning file that indicates that the material mustbe included in the next planning run. The system creates a procurement proposal in the next planning run. The reorder point and the safety stock level must be defined manually and are saved in the material master record.

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• Key Concepts: 
  Manual reorder point planning is a component of SAP's Material Requirements Planning (PP-MRP) module. It is used to manually set the reorder point for a material, which is the level at which the material needs to be replenished. This helps to ensure that the material is always available when needed.
  
  How to use it: 
  To use manual reorder point planning, first enter the material number and the desired reorder point in the system. The system will then calculate the required quantity of the material based on the reorder point. This quantity can then be used to create a purchase order or production order for the material.
  
  Tips & Tricks: 
  When setting a reorder point, it is important to consider factors such as lead time, safety stock, and demand fluctuations. Setting an appropriate reorder point can help to ensure that materials are always available when needed, while avoiding unnecessary inventory costs.
  
  Related Information: 
  Manual reorder point planning is just one component of SAP's PP-MRP module. Other components include automatic reorder point planning, lot-size planning, and availability check. For more information on these components, please refer to SAP's official documentation.