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storage location MRP Vs MRP area question

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I have a fair understanding of both, but would like to confirm my thought process..

 

I have a part that I need to plan separately using manual reorder point and replenish from other storage location. I have 2 options

 

1. storage location mrp indicator 2 and set reorder point value. when stock falls below, system will create an sto on other storage location (provided I do the sloc to sloc sto config). This set up will not use special procurement key and is independent of mrp type

 

2. I create mrp area and use reorder point value with mrp type VB. in this case I can use special procurement key to transfer stuff from other sloc.

 

is my understanding correct? if it is jut a simple reorder planning, do I have to go with option 2? or would option 1 suffice?

 

what extra advantage do I get by using option 2 in a simple reorder planning?

 

Thx

Swathi Rege


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