What is 'lot-for-lot order quantity' in SAP PP-MRP - Material Requirements Planning?

lot-for-lot order quantity - Overview

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A criterion for calculating the lot size in static lot-sizing procedures. If this criterion is selected, a procurement proposal is created for each shortage date for the shortage quantity in a planning run.

lot-for-lot order quantity - Details

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  Key Concepts: 
  Lot-for-lot order quantity is a type of material requirements planning (MRP) used in SAP. It is a method of determining the optimal order quantity for a given material or product. The lot-for-lot order quantity is calculated based on the current inventory level and the forecasted demand for the material or product. The goal of this method is to ensure that the inventory level is maintained at an optimal level, while also minimizing the cost of ordering and storing materials. 
  
  How to use it: 
  In SAP, lot-for-lot order quantity can be used to determine the optimal order quantity for a given material or product. To do this, first enter the current inventory level and forecasted demand for the material or product into SAP. Then, use the lot-for-lot order quantity calculation to determine the optimal order quantity. This calculation takes into account both the current inventory level and forecasted demand for the material or product. 
  
  Tips & Tricks: 
  When using lot-for-lot order quantity in SAP, it is important to remember that this method is only suitable for materials or products with relatively stable demand. If there are large fluctuations in demand, then other methods such as economic order quantity (EOQ) may be more suitable. Additionally, it is important to consider any additional costs associated with ordering and storing materials when determining the optimal order quantity.