Minimum & Maximum lot sizes in product master

[Former Member]

Hi,

How are the minimum and maximum lot sizes calculated for a location product? Our PPDS jobs are not creating any orders because the system is not able to schedule orders in the open intervals. We can either reduce the max. lot size or increase the work center capacity. Since we do not want to change the capacity of work center, we are working on changing the lot sizes. The question is how do we calculate the required min and max lot sizes. Specific interest is on max lot sizes.

i would appreciate if somebody can help.

Thanks.

[Former Member · Accepted solution]

Hi Raj,

You can map the max lot size with the maximum quantity for procurement.

You can either use past history data for arriving at this value or resource maximum output of the product.

Minimum lot size is the one which is the very minimal quantity beyond which procurment cannot be possible from the source location.

Regards

R. Senthil Mareeswaran.

[Former Member]

Hi Raj,

It is totally dependent on business scenario. Please do consult with your planner/business/client for suitable limit of Max lot size. It is the quantity that is not allowed to be exceeded during procurement/production. If necessary, i.e, for huge demand to be met, the system creates multiple orders with this maximum quantity.

And one thing you can do, dont put any maximum lot size, put only minimum lot size, if you want to restrict your procurement.

However if you plan with optimizer, then it does not consider max lot size.

Thanks,

Satyajit

[Former Member]

Thanks for the answers Senthil and Satyajith,

I agree it is business decision. Is there a link between lot sizes and the variable consumption defined for mode and product in PPM?

[Former Member]

Raj,

Please follow the link: http://help.sap.com/saphelp_scm50/helpdata/en/1c/4d7a375f0dbc7fe10000009b38f8cf/frameset.htm

You can follow the thread also for better understanding:

Thanks,

Satyajit

[somnath_manna]

Minimum and Maximum Lot Size along with Rounding values, Safety Stock etc. are basic master data parameters that need to be ascertained by business and peridocially (quarterly or bi-yearly) reviewed and modified. These parameters go hand in hand with BOM, Routing parameters in case of In-house Produced items and in Purchasing InfoRecords / Contracts in case of externally procured items.

What determines lot size parameters - actually it goes back to the basic Logistics methods for Economic Order Quantity calculation. There are tools like Inventory Analyst from ILOG (now an IBM company) which are used by major companies to carry out analysis of deliveries / shipments based on which Lot Size and Safety Stock parameters are determined.

Hope this helps.

Somnath