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1) Yes, sourcing will work the same way it works with the other sources like kanban,OSP etc. We have to define the ASL for the item and sourcing rule with the corresponding Assignment set.
2) According to my understanding logically Re-Order point is nothing but Min-Max with both min and max equal to Min value of the stock you want to maintain for the item
To answer the second question, an item is min-max planned when the items are typically 'D' class items, very less and reliable lead times and do not justify lot of supervision.
ROP (Re-order point) planning takes into consideration the lead-time consumption of the item hence used when the cost is medium to high, lead-times are high but somewhat reliable and it is not destired to maintain safety stocks.
Min-Max also does consider the lead times for the item and supply/demand sources and cutoff dates