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Former Member
Apr 10, 2012 at 05:14 AM

reorder level


Dear Expert,

One material is maintained at three level Eg. Depot, Regional Warehouse and Manufacturing plant.

We need to decide buffer at all level means we can say reorder level.

Requirement comes from customer at depot and depot full fill it from it stock level if stock below reorder point it will generate requirement which will cover from regional ware house.Now if requirement falls below reorder level at regional ware house which create requirement and same will be full fill by manufacturing plant.

Consider we have maintained reorder level 300 for all.Now customer order come for 50 so depot stock will goes blow reorder level so it will generate requirement for 50 and same will full fill by regional warehouse.

Now regional ware house will give 50 to depot so which create requirement 50 and which will full fill by manufacturing and due to that if stock short fall manufacturing and same will create requirement to produced material.

How to map this scenario? kindlyb give your suggestion with an example.