reg: lot size and replenishment lead time

[Former Member]

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)

[Former Member · Accepted solution]

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.

[pankaj_singh9]

Hi,

Consumption-based planning is based on past consumption values and uses the forecast or other statistical procedures to determine future requirements. The procedures in consumption-based planning do not refer to the master production schedule. That is, the net requirements calculation is not triggered either by planned independent requirements or dependent requirement. Instead, it is triggered when stock levels fall below a predefined reorder point or by forecast requirements calculated using past consumption values.

For T. Codes, refer link;

[Overview of the Main Transaction Codes for CBP|http://help.sap.com/saphelp_470/helpdata/en/7d/c27097454011d182b40000e829fbfe/frameset.htm]

Reorder Point Planning: -

1. MM02 - MRP 1 view, here enter MRP Type - VB, Lot Size - EX and then enter Quantity for Reorder Point generation

2. MD02 - MRP Run for Material with following Parameters

Material
Plant
Processing key NETCH Net change for total horizon
Create purchase req. 1 Purchase requisitions
Delivery schedules 3 Schedule lines
Create MRP list 1 MRP list
Planning mode 3 Delete and recreate planning data
Scheduling 1 Basic dates will be determined for planning
Activate all "Process Control Parameters"

And then Press Enter.

System will give Planned Order/Purchase Req. if Stock of Material falls below the Reorder Point. Which can be checked in MD04.

Also put some stock for the material so that you can analyze it in better way.