What factors influence the reorder point in consumption-based planning in SAP S/4HANA?

In consumption-based planning within SAP S/4HANA, the reorder point is significantly influenced by average consumption and safety stock. Average consumption refers to the typical quantity of a material that is used over a specific period, which establishes a baseline for predicting when stock levels will drop to a point that necessitates replenishment.

Safety stock acts as a buffer against fluctuations in demand or delays in supply. By considering both average consumption and safety stock, organizations can set a more accurate reorder point that caters to their specific operational needs and variability in demand.

The other factors, such as supplier delivery times, sales forecasts, and production schedules, while important in overall supply chain management, do not directly affect the calculation of the reorder point in consumption-based planning. Supplier delivery times can influence how quickly stock can be replenished once an order is placed, but they do not determine when to trigger that order. Similarly, sales forecasts and production schedules provide insights into future needs but do not directly inform the reorder point level in this specific context.