Sunday, 8 July 2012

Lot sizing Procedures

The procurement quantity proposal is the result of the lot sizing procedure in the material master. There are three different groups of procedures for lot sizing calculation.

·         Static lot-sizing procedure
·         Period lot-sizing procedure
·         Optimizing lot-sizing procedure

Static lot sizing procedures Here the system does not consider future shortages

Fixed Lot size; The system will create a proposal with fixed lot size in case of a shortage. If the proposed quantity is not enough to cover the shortage, system will create several proposals to cover the shortage. 
Fill up-to Maximum; In case of material shortage an order proposal will be created to bring the stock level to the maximum stock level recorded in material master.
Exact lot size (lot for lot); An order proposal is created for the shortage qty. If there are several issue in a day which cannot be covered, the system will still generate a single proposal for the total required qty.

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