How to set Auto Re-Order Level for multiple warehouses?

I can’t really get the grasp of Auto Re-Order Level. Can somebody explain how you would set the following scenario:

Let’s say the company has 2 shops (shop-1 and shop-2) and a central warehouse.

  • Shop-1 should re-order item X when it has only 1 left. Then it should get 2x item X from central.
  • Shop-2 is bigger, so it should re-order item X when it has 5 left. Then it should get 5x item X from central.
  • Central should re-order item X when it has only 7 left. Then it should purchase 10x item X.

Would the following be correct?

Check in (group) | Request for | Re-order Level | Re-order Qty | Material Request Type
All Warehouses | central | 7 | 10 | Purchase
All Warehouses | shop-1 | 1 | 2 | Transfer
All Warehouses | shop-2 | 5 | 5 | Transfer

Is there nobody who can help me with this?