Reorder point: We have specific on hand balance in

warehouse when it is below than i specific quanity (say

safety stock) a requisition/mo proposal will generate

automatically. So the point at which this proposal will

generate known as reorder point.

Reorder point quanity: The minimum order quantity which is

defined in warehouse for generating reorder point proposals

called reorder point quantity quanity.

Its very important from the planner point of view because

as soon we will have less on hnad quanity it will trigger a

requirment in the system for that perticular item.