Wheat are points and what are their purpose? Is it just a reputation ranking?

The points are a reputation ranking. The more you have, the higher "level" you attain. At higher levels you are able to self-assign more shops.

Thank you! I kind of assumed that, I just wanted to check for sure

You will accumulate points when you complete a report successfully. As well, you could lose points if you do not follow the instructions or fail to submit the report on time.