SAP S/4HANA Cloud Private Edition, Sourcing and Procurement (C_TS452_2410) Practice Test 2026 - Free Practice Questions and Study Guide

Order point planning is a method used in inventory management where inventory levels are monitored, and orders are placed when stock reaches a predetermined reorder point. This approach relies on specific lot sizing procedures to ensure efficient inventory replenishment.

The correct choices for lot sizing procedures suitable for order point planning include exact batch size, replenishing to maximum inventory, and dynamic batch size.

Choosing an exact batch size in order point planning ensures that the exact quantity needed is ordered whenever the inventory hits the reorder point. This minimizes excess stock and reduces carrying costs, making inventory management more efficient.

Replenishing to maximum inventory is also suitable because it allows the system to maintain stock levels up to a specified maximum. This approach is particularly useful when the demand for products can be steady or predictable. It ensures that when inventory reaches the reorder point, enough stock is ordered to refill it back to the maximum level, thus preventing stockouts.

Dynamic batch size involves adjusting the order quantity based on varying factors such as demand changes and lead time variability. This approach is compatible with order point planning as it enables a flexible response to changing inventory needs, allowing organizations to optimize their stock levels efficiently.

These procedures align well with the principles of order point planning, leading to better inventory control and optimized replenishment processes