Reg: lot size and replenishment lead time

Question

1. please explain about lot size and replenishment lead time.
2. please also explain about consumption based planing and in steps explain how to perform manual and automatic reorder point(transc code please)

Answer 1

You use the lot-sizing procedure to determine how the system is to calculate the reorder quantity in the planning run.                                                                               
A lot size defining the lot-sizing procedure is assigned to every material master record applicable to materials planning.                                                                               
The lot size is defined in Customizing by the combination of the lot-sizing procedure and the lot-sizing indicator.                                                                               
Three procedures for lot sizing are available:                                           
o  static lot-sizing procedures                                                          
o  period lot-sizing procedures                                                          
o  optimizing lot-sizing procedures                                                                               
You use the lot-size indicator to define the procedure.                                                                               
The following parameters are also available for controlling the lot-sizing procedure:                                                                    
o  Short-term and long-term lot size                                                     
   You can split the lot-sizing procedure into a short-term and a long-term period. This means that you can select one lot-sizing procedure in the near future and a different one in the distant future.                                                                               
You define the periods in the section of the screen entitled "End of the short-term period/start of the long-term period".                                 
   The valid from date of the long-term lot size area is defined via:                    
   -  a periodicity                                                                      
   -  a number of periods                                                                
   The beginning of the long-term period is calculated by taking today's date and adding the number of periods in the future; the long-term planning period then starts on the next complete period.                              
   Note                                                                               
For materials that are planned using the short and long-term lot size,                
   it is recommended that you define a maximum MRP period. Defining the                  
   MRP period has the effect that materials after a certain period are                   
   included in planning even if no changes relevant to the planning run                  
   have occurred. This avoids a situation where order proposals created                  
   with the long-term lot size move into the short-term period because no                
   changes relevant to MRP have occurred for the material.                               
   You define the maximum MRP period in the step, "Define maximum MRP                    
   period". A material that is planned on a regular basis should also be                 
   provided with an MRP type that contains the indicator for regular MRP.                
o  Scheduling indicator                                                                  
   For period lot sizes, you can use the indicator for scheduling to                     
   determine whether the availability date;                                              
o  is to be set to the first requirements date in the period                             
o  or is to be set to the beginning of the period                                        
o  is to be set to the end of the period                                                 
o  or whether the period start represents the beginning of the planned                   
   order and the period end represents the availability date (repetitive                                                                               
manufacturing)                                                        
  Interpretation of the delivery times                                  
  For the lot-sizing procedure, you can also define whether the period  
  start is to be interpreted as the delivery date or as the availability
  date using the indicator, "interpretation of the calendar times".     
  NOTE                                                                  
  The indicators, Scheduling and Interpr.deliv.times are mutually       
  exclusive.                                                            
  Indicator for the splitting quota                                     
  For the quota arrangements, you can determine whether the requirements
  quantities are to be distributed to several items, that is, whether   
  they are to be split. With the splitting quota arrangement,           
  requirement quantities are not simply allocated to the smallest quota 
  rating. Instead, they are distributed among various sources using the 
  following formula:                                                    
  Quantity for source of supply X = Quota of source X * reqmts quantity                                                                               
Sum of all quotas          
  Overlapping indicator                                                 
  The overlapping indicator along with the cycle time in the material   
  master record are used to split the planned orders into several       
  partial quantities whereby the in-house production time overlaps by   
  the cycle time.                                                       
  Lot-sizing procedure for make-to-order production                     
  In make-to-order production, you can use the indicator, Lot size for  
  make-to-order production to determine whether,                        
  the order quantity is to be calculated using the exact lot size       
  the order quantity is to be calculated using the exact lot size and   
  the system is also to take the rounding quantity or the minimum and   
  maximum lot size into account                                         
  the order quantity is to be calculated using the lot-sizing procedure 
  defined for the short-term area                                       
  Maximum stock level variant                                           
  The system only displays the Maximum stock level variant field in the 
  lot-sizing procedure, Replenishing to maximum stock level. The        
  indicator only has an effect in connection with reorder point planning
  taking external requirements into account and in connection with      
  material requirements planning and controls how the system calculates 
  lot sizes.