Based on your question, I am assuming you are referring to Statistical Re-ordering.  The re-order suggestions are created by using Reorder threshold.  If you are referring to Periodic replenishment method, we can provide some information for this as well.

For your configurations, you need to consider the following:

The economic quantity: This is the Minimum Reorder quantity and can be manually populated in the ‘Planning’ tab under ‘reorder’ section in the Product-site screen.

The replenishment threshold: This is the stock level from which a reordering (or work order) is triggered and can be manually populated in the ‘Planning’ tab under ‘reorder’ section in the Product-site screen.

The reorder mode must be set to By ROP in the Product-site planning tab.

The processing will consider the following:

The stock available: The available stock corresponds to the physical stock minus the allocated stock (global, detailed, and missing) increased by the stock with status Q.

The stock on order: The stock on order is the order that is currently placed on Purchase order or Work order has not yet been received.

Hope this helps you get started.

Frank Bernal

Southeast Computer Solutions

How does ROP get processed ?  Is it through the MRP Calculation or is there a different function to run ? 

The actual Statistical reordering function is located in Stock > Reorders > Statistical reordering.

Looking in the function help:

This function was designed for two purposes:

• create the reorder suggestions for products managed with a reorder threshold or with periodic reordering.
• calculate and update the data of the product site record: the safety stock, the maximum stock, the reorder threshold, the economic lot depending on the stock setups and the product consumption history.

There are setup configurations defined in Setup > Stock > Stock parameters, Reordering tab.

Frank Bernal

Southeast Computer Solutions

What is the difference between ROP and Period ? If I run statistical reordering on a daily basis, will it not provide a new suggestion for the "period" products till it's next period ? 

Yes! New suggestions will be made on next period. 

Note the exception below:

Products that are managed by Periodic Reorder and are not due [(last process date + interval) > current date] are processed but only if they are out of stock.

Definition of a shortage: Available stock + Stock being ordered = 0.