Getting a bit confused with how much stock is ordered when the re-order point is reached.

Simple Example: ignoring lead time for the moment Safety stock is 10 and the re-order point is 10. - I'm assuming that the re-order trigger is when stock hits 9

So does MRP suggest you should order the safety stock (ie 10) or just the shortfall (ie 1) or both (ie 11)

Thanks in advance, P

Getting a bit confused with how much stock is ordered when the re-order point is reached.

Simple Example: ignoring lead time for the moment Safety stock is 10 and the re-order point is 10. - I'm assuming that the re-order trigger is when stock hits 9

So does MRP suggest you should order the safety stock (ie 10) or just the shortfall (ie 1) or both (ie 11)

Thanks in advance, P

Hi Penfold,

System will check the order method, if
1. ur order method is Lot for Lot than system will create the order of allocated qty.
2. Fixed order qty ,than system will create the order of fix qty (Or ur fixed order qty, which u mention in odering data)
3. Replinish to max qty, than system will create order of the order of an qty to replinish the max qty. or to achieve the max qty.

Hope this will help u !!!:)

Thanks for that we use lot for lot and economic order quantity.

Will EOQ value be ordered when re-order point reached?

Hi

You can use Order Method = Replenish to Max Inventory to use this Reorder Point.
You set Max inventory = 100 , and Reorder Point 10.
When the stock fall below 10, it will generate production /purchase advice to fulfill the max inventory.