Maintaining Minimum Lot Size equal to Fixed Lot Size

[former_member1058922]

Dear All,

We are in the process of maintaining Fixed Lot size for all our bulk products at the factory level. However we have not maintained any minimum lot size value for the same.

When we are taking an SNP optimisation run for demand spread over a duration of 4 months; SNP PLANNED ORDER’s are created based on the demand in each month.

For example if demand is 500L, 500L, 500L, 500L over 4 months and my resource capacity is 1000L, then ideally I should finish production of the demand in 2 batches of 1000L each.

Instead SNP Planned orders are getting created as per the demand i.e. 500L just a day or two before the demand date as per the lead times mentioned by us in the system.

This is undesirable as resource capacity utilisation is not fulfilled and also because my resource is getting blocked in the subsequent months as well. (Resource can produce multiple products)

What I want to know is how we can maintain both fixed lot size values and minimum lot size values for a product at the factory to address the above issue? If yes what should be their ideal values or they have to be kept equal?

P.S: Screenshot for the same has been attached for your kind consideration

[Former Member · Accepted solution]

Hi Harshavardhan,

I feel there are two issues, first, need to find out why optimizer is finding it as a cost effective solution to place the receipts before the demand date. Second, the lot sizes as you mentioned.

For optimizer, can you provide more details, like, leadtime to manufacture, resource capacity etc.....

And for lot sizes you cannot maintain both, for e.g.

If EX is lot size and minimum is 100 and max lot size in 1000, then if requirment is, for e.g. 75 will be rounded to 100 and 1100 will get 2 orders, 1000 each and if 600, then order qty stays the same.

you can manipulate this set up of FX lot size, by placing the minum lot size qty and giving EX.

And you can also use the rounding value in combination to EX and Min lot size.

Let us know if you have checked these options already. hope this info helps..

Regards,

Sandeep.

[rajkj]

Hi Harshavardhan,

With respect to lot size consideration in planning, the SNP Optimizer will consider the greater of minimum lot size maintained in location product master as well as PPM/PDS. Given that you maintained minimum lot size as 0 in location product master and PPM/PDS (assumption), optimizer will not consider this constraint and generated the optimized proposals based on the demand and cost factors you maintained.

Probably, try with fixed lot size with known quantity, minimum lot size same as fixed lot size, and rounding value to calibrate the optimizer settings (cost factors etc.). Then, change the lot size details with realistic data so that the system will generate the planned orders as expected.

Thanks,

Rajesh

[former_member1058922]

Hello Rajesh / Sandeep,

Thank you for your prompt responses. Currently we are trying to keep minimum lot size as 0 in both PPM/PDS and product location master. On the other hand we have kept fixed lot size equal to the resource capacity i.e. if resource can make a batch of 10KL then fixed lot size is maintained as the same.

Also could I get some clarity on as to how the concept of rounding up works. This will help us make use of the parameter and perhaps change the outcome of the optimizer as well.

Will let you guys know the results at the earliest.

[rajkj]

Hi Harshvardhan,

The lot size settings maintained in PPM/PDS for in-house production will take precedence over location product master settings. If you maintain fixed lot size, the system ignores all other lot size settings from the location product master, such as minimum and maximum lot size, rounding value or rounding profile.

Refer SAP help by pressing F1 key on the fields of rounding value and rounding profile (available on lot size tab of location product master record /SAPAPO/MAT1) for details.

Thanks,
Rajesh

[b_valavan]

Hi Harsh,

Hope using Fixed lot size as that of your capacity should solve the issue. In this case it is not required to use Minumun / Max lot size.

Please try and let me know the results.

Br,

Valavan.B