The Re-Order Point is the level of inventory that triggers material
procurement. Once the inventory falls below this level, you need to create the
order proposal either manually or automatically by the system. In the case of
the manual re-order point procedure, you will define the reorder point and the safety
stock in the material master. On the other hand, in the automatic re-order
point procedure, the system will calculate the re-order point and the safety
stock based on the next periods consumption pattern.
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