How much to order , reorder point and Safety stock calculation in SAP?

Existing Client is Distribution company , the Challenge is how much order , when to order and how much safety stock we need to keep for Material in SAP?
Limitations with Client System:
u2022The existing system does not enable purchasing to have visibility to firm (open sales orders) and planned (customer forecasted) demand for a material.
u2022If a sales order is placed that consumes all of the inventory available, the purchasing department is not notified automatically to replenish the stock
u2022The system in place currently does not enable the organization to maintain a level of safety stock.
u2022If inventory is logically allocated to a priority customer based on their forecast, there is no way to ensure that inventory is reserved for the priority customeru2019s orders u2013 other sales orders often consume it.
u2022If a material is backordered with several sales orders waiting for parts, the sales orders are allocated based on earliest requested delivery date upon receipt of the part; there is no way currently to allocate the stock across the open sales orders if it is determined that is the appropriate course of action.
Thanks
Sweth

Sweth, you are asking for consulting, and in my opinion it is way beyond what can or should be reasonable to achieve in such a forum. You are asking complex questions, that most probable have more than one possible answer.
I suggest that you get on-site help from a knowledgeable and experienced consultant. These are crucial business issues, and should be dealt seriously.

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