Storage Location MRP with Stock Transfer

If you have set an MRP indicator for storage location MRP, but you have not defined a special procurement type, then the storage location stock is procured by stock transfers from the plant to which it belongs, this means that the storage locations in a plant that are planned as normal provide stock to replenish the special storage locations. The following is carried out in the planning run:

For every storage location whose stock is planned separately, the system compares the reorder level with the stock level of this storage location. If available storage location stock is less than the reorder level, the system creates a stock transfer reservation for the amount of the replenishment quantity or for a multiple of the replenishment quantity. The stock transfer reservation is treated as a receipt at storage location level. At plant level, it is treated as an issue reservation (material reservation).

For storage location "X", you define a reorder level of 30 pieces and a replenishment quantity of 50 pieces. In the planning run the stock level is equal to zero. Since stock (0) has fallen below the reorder level, a stock transfer reservation amounting to the replenishment quantity (50) is created. At the same time, this stock transfer reservation produced an issue at plant level for the same amount.