Hello Aditya,
There are many post in SDN which explain Reorder point planning for MRP
Kindly look into the same.
For your information:
- You have set an MRP type for reorder point planning in the material master (MRP 1 view).
- You define MRP types in Customizing for MRP in the IMG activity Check MRP types
- In the material master, you have entered or let the system automatically calculate and enter the values for the reorder point (MRP 1 view) and for the safety stock (MRP 2 view).
- When you run MRP for that material it replenish the stock when the safety stock goes beyond the defined value
refer the below link:
http://help.sap.com/saphelp_46c/helpdata/en/f4/7d257044af11d182b40000e829fbfe/content.htm
Regards