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
Similar Messages
-
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 -
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 -
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). -
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. -
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 PMHi,
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 -
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 -
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.PHi
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 -
Sale order costing for Trading goods
Dear Experts,
My client having retail industry.Client used to sold customers also like outwright customers direct sales not through retail stores. Now business would like to check margin agasinst one sale order through costing. My SAP working enviornment is IS Retail ECC6.0.
1. Is it possible to do sale order costing for trading goods.(Goods p[urchased for all stores not particular customer)
2.Wihtour BOM is it possible?
3.Please forward any user docs ,if possible that costing
Costing sheet like this
1.Trading goods
2.Packaging materila
3.Overheads.Planned
Beat Rgds
SumaAnswerd with Condition type
-
"Alternate" Sales Order Costing for configurable product
We are using condition EK02 to record the statistical value of the product cost associated with a make-to-order (configurable) product. Our current accounting system is moving average, so this EK02 value is based on the current moving average of all the components.
Management has a need to store a second statistical value which would be based on standard cost rather than moving average. This value would be used to assess margins on a fixed rather than moving basis. It would not update accounting in any way.
I understand that the method used to perform order costing is configured in SD > Basic functions > Accounting & costing > Maintain requirements class for costing and account assignment. But again, I do not want to change the current method, I want to add a second.
Can anyone suggest a method for doing this?
Thank you,
MicheleHi
For getting margin from standard price in material master ,i think u can use VPRS in pricing conditions.
Use the VPRS and its negative copy for getting actaul margin from sales in pricing procedure.
Regards
Mandar -
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 ArbabHi
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 -
Sales order costing for Configured Material (Material Variant Not KMAT Mat)
Hi All
For a Configured Material (Variant) (Not KMAT Material), which is having Std price costed.
But if we create a Sales Order for the Configured Material, what options are availale to Execute Sales order costing and take the sales order value to COGS during Delivery.
The reason being Client wants to Cost BOM items are price which is different from the Price used in Std cost estimate due to Price Volatility.
I can understand we can do this in KMAT, but not sure how to do in Conifgured material. We can execute sales order costing and get Statistical cost value in EK02/EK01, but how to get this value posted during PGI..?
Thanks
AravindHi Ajay
Even if i maintain M in Valuation filed, my Material Variant HALB material is already having standard cost in its material master and it is picking the std cost during PGI Delivery and hitting COGS A/c.
Now how to get my sales order costing to real and post my sales order costing value to GI..this is the client requirement.
Due some complication KMAT is not used and logistics go with Material Variant -
Getting Total Order Cost for each order
I have a fact table, order lines.
There are two dimension tables, customer & Product.
For each order i want to display on a pivot table:
- the cost of the line.
-the cost of the total order.
Is this possible? I have been playing with ALL & All except but have not found a solution yet. some metadata is below
CustomerID CustomerName
1 john
2 mary
3 jim
4 kevin
ProductID ProductName Price
1 pen 5
2 cup 4
3 car 7
4 phone 3
OrderLineID CustomerID ProductID Quantity
1 1 2 2
1 1 3 2
2 2 1 4
3 1 2 5
3 1 2 4
3 4 4 6
4 4 4 6Hi Winston,
Could you kindly provide an example of the output you'd expect based on the above data? Also, I've noticed that there is no OrderID column in the order line table. How would you determine which OrderLineIDs belong to a single order?
Regards,
Michael Amadi
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Website: http://www.nimblelearn.com
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Twitter: @nimblelearn -
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 -
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,
SenthilHi 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
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