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Safety stock and Reorder point in MRP?

Dear All,

Please explain me how MRP run works only reorder point is given and Wn both safety stock and Reorder point is given?

For ex.

I have maintained Reordering point of 75 and safety stock as 100.

During the MRP run do system considers safety stock and create purchasing proposal only Wn safety stock reaches 75 or it ignores safety stock?

Thanks in advance.

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2 Answers

  • Best Answer
    Jan 08 at 02:11 PM

    Hello ,

    Try to read below blogs and come up with specific qns if you have any query.

    https://blogs.sap.com/2014/02/24/safety-stock-and-its-availability-for-planning-purposes/

    https://blogs.sap.com/2016/01/10/the-difference-between-using-a-reorder-point-procedure-or-a-pd-with-safety-stock/

    there are many points to be considered for determining the Re-order point and safety stock .

    Formula ROP : D ( Demand/Day) * L (Lead Time) + Safety Stock


    Mostly Safety stock (Buffer Stock) will not be considered during Net Requirement Calculation. But you can define some percentage to consider the safety stock during MRP run by maintaining the MRP Group Settings ( OPPR).

    Best Regards,

    Kumar Semmalai

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  • Jan 08 at 10:04 AM

    Hi Santosh,

    Consumption-based planning consist of (CBP)

    Forecast-based planning

    Re-order point planning

    Time-phased planning

    let's talk about Re-order point planning that consist of Manual Re-order point and Automatic Re-order point

    Automatic Re-order point the stock level and safety stock determined by integrated forecast program

    while manual Re-order point the stock level and safety stock determined by manual input in material master MRP1 and MRP2 that's your Question

    then you use for EX: material (ROH1) MRP type =VB and Re-order point 75 and safety stock 500

    then when you run MRP for (ROH1) once your stock level fall under Re-order point PR created with specified lot size maintained in MRP1.

    Regrads,

    Muhamed Ibrahem

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    • The purpose of the safety stock is to prevent material shortage. To determine the safety stock level, you must specify the risk of a material shortage and the desired service level.

      Safety stock is not used in production. it may used in availability check to be considered or not .

      Regards,