A repair shop order is used when you have a product in stock that you want to do some work on (repair) and then receive back to stock. I.e., the same part that is issued from stock is later received back in to stock. 

Hi Holly,

If I may add something more to the explanations,

A repair shop order is an electronic document that authorizes the repair or modification of a part. The repair shop order is the result of a disposition shop order either identifying discrepancies or required modifications.

A repair shop order is similar to a standard shop order. The primary differences are:

• The repair shop order is for real parts to be modified or fixed.
• The material requirements are for items that need to be repaired rather than for component material.
• The repair operations are based on the repair or modification required.

Repair shop orders are heavily used in maintenance, repair, and overhaul (MRO) processes. the repair shop orders follow either disposition shop orders or assembly shop orders and are followed by assembly shop orders.