Calculating Net Requirements for Reorder Point Planning

In the reorder point planning procedure , available warehouse stock is calculated as follows:

Warehouse stock

Open order quantity

(purchase orders, firm planned orders, fixed purchase

requisitions)

For more detailed information on firming planned orders and purchase requisitions see Overview.

If available warehouse stock falls short of the reorder level then the shortage quantity is the difference between the reorder level and available warehouse stock.

The system takes the planning date as the requirements date.