Lot-sizing procedures

Hi Experts,
Can anybody please explain difference between following lot-sizing procedures.
static lot-sizing procedures
period lot-sizing procedures
optimum lot-sizing procedures
It will very much helpful if explain with example. Will appreciate with deserving point.

Dear Raja,
Pls. find details about Lot Sizing Procedures :
Static Lot-Sizing Procedures
Use
In static lot-sizing procedures, the procurement quantity is calculated exclusively by means of the quantity specifications entered in the material master.
Features
The following static lot-sizing procedures are available:
Lot-for-lot order quantity
Fixed lot size
Fixed lot size with splitting and overlapping
Replenishment up to maximum stock level
Period Lot-Sizing Procedures
Use
In period lot-sizing procedures, the system groups several requirements within a time interval together to form a lot.
Features
You can define the following periods:
days
weeks
months
periods of flexible length equal to posting periods
freely definable periods according to a planning calendar
The system can interpret the period start of the planning calendar as the availability date or as the delivery date.
Splitting and overlapping are also possible for all period lot-sizing procedures
The system sets the availability date for period lot-sizing procedures to the first requirements date of the period. However, you can also define that the availability date is at the beginning or end of the period.
Optimum Lot-Sizing Procedures
Use
In static and period lot-sizing procedures, the costs resulting from stockkeeping, from the setup procedures or from purchasing are not taken into consideration. The aim of optimum lot-sizing procedures, on the other hand, is to group shortages together in such a way that costs are minimized. These costs include lot size independent costs (setup or order costs) and storage costs.
Taking Purchasing as an example, the following problem hereby arises:
If you order often, you will have low storage costs but high order costs due to the high number of orders. If you only seldom place orders then you will find that your order costs remain very low, but your storage costs will be very high since warehouse stock must be large enough to cover requirements for a much longer period.
Features
The starting point for lot sizing is the first material shortage date that is determined during the net requirements calculation. The shortage quantity determined here represents the minimum order quantity. The system then adds successive shortage quantities to this lot size until, by means of the particular cost criterion, optimum costs have been established.
The only differences between the various optimum lot-sizing procedures are the cost criteria. The following procedures are available:
Part Period Balancing
Least Unit Cost Procedure
Dynamic Lot Size Creation
Groff Reorder Procedure
Hope this helps.
Regards,
Tejas

Similar Messages

MRP Lot-Sizing Procedures PK

Hi experts,
When we use lot-sizing procedures PK, I have a problem about it.
Can you please kindly help me.
The problem is.
When we run MRP and get the release date as past date in purchase requisition.
I would not like system to propose release date as past date.
Do we need more configuration for using lot-sizing procedures PK ?
The settings are mentioned as below.
* material master
- Lot size in MRP1 view : PK
- MRP Type in MRP1 view : PD
- Procurement type in MRP2 view : F
* MRP parameters
- Processing key : NETCH
- Create purchase req. : 1 (Purchase requisitions)
- Delivery schedules : 3 (Schedule lines)
- Create MRP list : 1 (MRP list)
- Planning mode : 1 (Adapt planning data (normal mode))
- Scheduling : 2 (Lead Time Scheduling and Capacity Planning)

please read below for the detail explanation of the release date.
please check the example part of below.
wish it help.
tks.
Purchase Requisition Release Date
Specifies the date on which the purchase order
should be initiated on the basis of the purchase
requisition.
The release date is based on:
The
     purchasing department processing time defined for the plant
The
     planned delivery time from the material
     master record or purchasing
     info record
The
     delivery date
The
     goods receipt processing time from the material master record
Note
The planned delivery time from the
purchasing info record and the GR processing time are only taken into account
if the purchase requisition was generated via materials
planning.
Example
Processing time Planned del. GR processing
Purchasing time time
|----------|---------------------|--------|
Release PO Delivery Date
date date date required
Date required: 01.10.2007
GR processing time: 2 days (working days)
Planned delivery time: 10 days (calendar days)
Purchasing dept processing time: 2 days (working days)
For the material to be available on the
date it is needed, the purchase requisition must be released on 13.09.2007
(requirement date less GR processing time, planned delivery time, and
purchasing department processing time).

Multiple PR's being created even though the Lot Sizing procedure is WB.

The issue is system is creating more than one PR every week even though the lot sizing procedure is WB. The MRP type of the material is P3 and planning time fence is 21 days. The PR's created have the date of every week's Monday. There's also a quota arrangement for the material having two vendors, so two PR's both having different vendors are ok but system is creating multiple PR's for same vendor on same date.
Do let me know if anything else you want to know to understand this issue.
We want system to create only one PR per week for a vendor.
Thanks,
Rakesh.

Hi,
First thing theres a lot size WB
What is the qty of the PR have u maintianined any min lot sice or max lot size.
Coming to quota arrangement how did u maintained it
For eg
You might have maintained for a vendor 1 maximum qty as 100 and u have raised a request for 200 so it is raising two prs
Check u r quota arrangement once
Reagrds
sravanthi

New lot-sizing procedure (similar FX fixed order quantity)

Dear All,
I have to create a new lot sizing procedure for MRP run. This new procedure should be similar to FX - the material should be included in MRP run when the stock falls below reorder point - but the quantity ordered (proposed to be ordered in PReq) should be the fixed lot size no matter which is the difference between the reorder point and the stock.
To clarify the request: the reorder point is 70, the stock level is 15 and the fixed lot size is 25. The MRP run should create 1 PReq for 25. (The standard functionality of FX lot sizing creates 3 PReq for 25 pieces each one - because the needed quantity is 55.)
If there is no standard customization to be done, I think I should do some changes in the needed quantity (set the quantity 25 instead of 55) - but I need yours advice also about the best way to do this. Maybe you may indicate an exit/BADI or a place where I can do an enhancement to achieve this.
I now it is not the best request - but I have to do it, unfortunately .
Regards,
Florina R.

Hi Tomasz,
1) The reorder point is 70 (greater than the needed quantity for a week) because the vendor has some delivery problems and also because this quantity covers the delivery lead time.
2) The lot size is fixed because they do not want to order more than the needed quantity for a week even if the difference between the reorder point and the stock level is greater than 25.
I'm able to fix the lot size but not to limit the quantity at this value (25).
I have to do this because they will provide the needed quantity (if the stock falls to 0) from another vendor (but the tricky thing and wrong also is the fact that for the second vendor I have a second material....).
It is hard for me to convince you that the request is correct because I know in this way SAP will work incorrectly - but the client knows the consequences and even so wants this kind of lot sizing procedure...
Regards,
Florina R.

Lot sizing procedure

Hello
Why it is said that "Periodic lot sizing procedure is suitable for forecast based planning"?
Also please tell what is use of Subsequent settlement indicator in vendor master record?
Thanks & Regards
P.S.P

Hi
Sub seq settlement Indicates that conditions providing for subsequent settlement may apply to this vendor.
Set this indicator if subsequent (end-of-period) settlement can be agreed with this vendor.
Vijay

Optimum Lot Sizing Procedure

No. of POs per year
Purchase Cost
Storage Cost (20 %)
Total Cost
Purchase Value
Purchase Quantity
1
800,000
2,400,000,000
2,400,800,000
120,000,000
1200
2
160,000
13,200,000
14,800,000
60,000,000
600
3
240,000
8,800,000
11,200,000
40,000,000
400
4
3,200,000
6,600,000
9,800,000
30,000,000
300
5
4,000,000
5,280,000
9,280,000
24,000,000
240
6
4,800,000
4,400,000
9,200,000
20,000,000
200
7
5,600,000
3,771,429
9,371,429
17,142,857
171
8
6,400,000
3,300,000
9,700,000
15,000,000
150
Hi All,
I need total requirements of 1200 EA around the year from a specific material, if i issue one PO per year for total quantity of 1200 the total cost will be as shown above, if i issue two POs (one PO every 6 months with total quantity of 600) the total cost will be as shown above, the optimum quantity is 200 and 6 POs (one PO every 2 months with total quantity of 200) as the cost will be at its minimum.
Line no. 6: the optimum quantity that should be suggested by MRP run is 200 EA as the total cost is 9,200,000 (the lowest cost).
I want to use dynamic reorder point (MRP type V2) and dynamic lot size(DY) in MRP1 view i choose MRP type V2, Lot size DY,Reorder Point 300, Safety Stock 100, Ordering Cost 800,000 and Storage Cost ind. 1 ( represent 20%) but when i save the material the system issue the below message:
MRP type V2 requires forecasting data to be maintained so please help me to understand which data i have to maintain to use optimum lot sizing procedure to meet the above requirements.
If you could help me with an example and screenshot i'd be grateful. Thanks in advance.

Hi,
Do refer the below wiki Link it will help you understand more about Lot sizing procedure..
Lot sizing procedure calculation - Adobe Interactive Forms (Japanese) - SCN Wiki

MRP Lot Sizing Procedures

Can some provide a list of the SAP supplied lot sizing procedures. The value and description would be fine.
Such as EX - Lot for Lot.
Thanks
Edited by: WILLIAM GETZ on Mar 27, 2008 1:42 PM

Hi,
The lot sizes are maintained in transaction OMI4.
The following are a few standard lot sizes,
ES - Lot-for-lot order quantity w. splitting,
FX - Fixed order quantity
FS - Fixing and splitting
GR - Groff reorder procedure
HB - Replenish to maximum stock level
MB - Monthly lot size
TB - Daily lot size
WB - Weekly lot size
Please inform if you need any specific information about the lot sizes.
Regards,
Senthilkumar

Ordering costs For Optimum Lot sizing Procedure

Hello Gurus,
What does ordering costs mean.I am unable to conclude from SAP Library
how to arrive at these costs.I could understand the logic behind using
these costs and getting the optimum lotsize.Kindly help me in understanding
the ordering costs.
Thanks in advance,
S.nandhakumar
Message was edited by:
S Nanda Kumar

Hello Nanda,
Ordering costs is sum of transport cost and storage cost for a component.
In transport cost you can include all purchasing cost and you have maintained this in MRP view in the field of "ordering costs".
Storage cost you have maninatined in percentage in customizing in lot sizing procedure.
This will be picked up automatically with optimum lot sizing procedure to create a optimum lot size.
Please rewards your points if helpful and let me know anything more you would like to know.
Regards
TAJUDDIN

Regarding lot sizing procedure in Pharma scenario.

Hi PP Gurus,
I have a scenario for lot sizing for small and big batches of a product.
For example, let us say the order quantity is
Case 1: 1000 kg of finished product
then the fixed lot size will be 500 kg (which is small batch size) and 2 batches will be taken for production
Case2: 3000 kg of finished product
then fixed lot size will be 1000 kg (which is big lot size) and 3 batches will be taken for production
Could anybody please help to propose solution for such scenarios?
Thanks,
Abu Arbab

Hi
You may use FS Fixed Lot Size with Splitting for that purpose.
This link would help you;
http://help.sap.com/saphelp_46c/helpdata/en/f4/7d281244af11d182b40000e829fbfe/content.htm
Regards,
Onat

Monthly Lot Sizing Procedure

Dear friends,
I Used Monthly Lot size ( MB) For my finish Material. Material has safty Stock. If I put Next Month plan in MD61 and run MRP in current month, system creates seperate planned ordrs for safty stock requirement and next month requirement. But I want that both requirements should be generated with combined quantity.
How can i do this?
Please help me.
Thanks!

>
kiran ghule wrote:
> Dear friends,
> I Used Monthly Lot size ( MB) For my finish Material. Material has safty Stock. If I put Next Month plan in MD61 and run MRP in current month, system creates seperate planned ordrs for safty stock requirement and next month requirement. But I want that both requirements should be generated with combined quantity.
> How can i do this?
> Please help me.
> Thanks!
Kiran,
Since your material is defined with Safety stock and there is no stock currently, system would be creating the procurement proposal for safety stock with current month requirment date and for the next month requirement it would create one more planned order with requirment date of next month. This is a standard behaviour.
I dont understand why you want to have the MRP combine the Safety stock requirement + next month requirement when there is a shortage for safety stock in the current month. Please clarify, your requirement looks incorrect.
Regards,
Prasobh

Use of periodic lot sizing in SNP heuristics

I am using APO V5.1.
I am using the standard APO SNP heuristic, and have periodic lot sizing working OK, with a 2 week periodic type.
But I want to try and model the fact that certain products are to be produced in 'even' weeks and other products are to be produced in 'odd' weeks.
I thought that the use of different planning calendars for the different products would help here, but I do not think SNP is recognising the planning calendars.
Any other ideas on this?...

hI,
Wanted to know if you have checked the option and tryed the same in system since the helptext says the same will not be considered by optimizer but will be considerd by heuristic.
Period Lot Size
Specifies that a period lot-sizing procedure is used in Supply Network Planning (SNP) and Production Planning and Detailed Scheduling (PP/DS).
Use
Use in SNP
This indicator is only used in heuristic-based planning (and not in optimization-based planning). If you set this indicator, the system groups the demand quantities of several consecutive periods together and creates orders to fulfill the quantity of this combined demand.
The period type and number of periods can be entered in the accompanying fields Period Type and No. of Periods. You can set the start time for the grouping in the Lot Size Grp. Start field.
The settings you make in the Lot Size Strategy field govern the period in which the combined demand is placed and the demand fulfillment order is created.
When calculating lot sizes and creating orders, the system considers all the other lot size settings from the location product master, such as minimum and maximum lot size, rounding value, and rounding profile.
Now for the solution you are thinking if possible you can divide the plant in two parts if the materials are accounted differntly and keep two different factory calendars for the same and go ahead.This may be not a good solution but I thought I can share this with you.
Hope this can help.
regards,
kaushik

Alternate Lot Sizing for KMAT (configurable) materials

Hi friends,
We are using KMAT(configurable) materials.
During MPS/MRP run, SAP plans KMAT production with Lot-to-Lot production(EX) by default!
We have some capacity planning situations, due to which, we need the lot sizing options like u2018Fixed lot (FX) sizeu2019 or u2018Fixed lot size with splitting(FS)u2019 or even use of u2018Min-Max lot sizeu2019... so that the large requirements are transferred in smaller lots to the plant.
But, when we use any of these lot- sizing procedures in MRP1 screen of the material master, we do not find any difference in MRP resultsu2026 system just triggers the planned order exactly matching the Sales order quantity (as if we still use EX)!
SAP notes 437098 and 724235 hint that the alternate lot sizing procedures are possible to set up for configurable materials... but we are struggling to crack this.
If any of you have had an opportunity to work on alternate or custom lot sizing procedures with KMAT (configurable) materials, it would be wonderful to hear the suggestions and results.
Thanks in advance.
Best Regards,
Senthil

Hi Dario,
Thanks for the response.
We use ECC6.0; I could not find the inidicator you've referred (customer requirement)... in transaction OMI4 : Check Lot Sizing Procedure --> MRP Lot Size...
Kindly advise if you were referring to any other version or any other transaction...
Best Regards,
Senthil

Offset in planned order with weekly lot sizing.

Hi,
After i run MRP with a weekly lot sizing procedure, avaiability date = start of the period, the MRP groups all planned orders of the week at the first requirements date of that week.
But what i need is to put that group of the planned orders in the last working day of the week before.
For example:
Week
Friday Week n
Week n+1
Ind. Requirements
0
1
1
1
1
1
Planned order
5
Can you please help me how to solve this issue.
Thanks in advance.
Mike

Hi,
It is possible by configuring a version of the standart weekly lot sizing procedure. In customization for lot sizing procedures (tr. OMI4), copy the lot sizing procedure WB and name it. In the detail settings of the procedure set the scheduling field to 1. This makes the delivery date of the procurement proposal the period start (you requirement is the last day of the previous period, however this is the best next option). You may press F1 after clicking on this field and learn about other options. Please assign this new procedure to the material and test it.
Regards.

Weekly Lot-sizing yielding incorrect Planned Order dates

Hi All,
need a help..
Lot-sizing key = W2 (weekly)
"Scheduling" on the config of the lot-sizing key = 3 (Period start := start and period end := delivery date). This data has been maintained for a material that is to be planned/produced on a weekly basis.
Requirement --- Weekly planning on my material. MRP should return Planned Orders with Start Date = Reqt Date (of the Dependent reqt) & End date = Availability date (of the dep reqt).
Currently, the system is calculating the "only" hours on the basis of the Routing data (I'm running Lead Time Scheduling) while creating Planned Orders during the MRP run against my expectation of spanning the production/order out over multiple days (per the lot-sizing config)
Any clue would be of a great help
cheers

Thanks Mario,
Had found that out during the course of my testing. I'm doing a Lead Time Sched, so obviously my reqt can't be met..
So, we can conclude that though a weekly lot-sizing procedure is/could be compatible with LTS, the Config within the lot-size (field Scheduling = 3) cannot be used to influence the dates on the created Planned Orders...
Cheers

How to achieve Lot Sizing in Strategy 50

I am using strategy 50 and lot sizing procedure EX with max and min lot sizes as 400 and 200 respectively. I create sales order with 1000 units as a result of which only 1 planned order with 1000 units created where as i m expecting 3 planned orders with 400, 400 and 200 units as per provided lot sizing procedure.
Please guide me to achieve my desired result.
Thanks,
Shah

Hi
Check what is the lot-size indicator is used for the lot - size- procedure EX in OM14.
The lot-size indicator should be E.

Lot-sizing procedures

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