What is lot-size-independent costs in SAP PP-MRP - Material Requirements Planning?

SAP Term: lot-size-independent costs

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: The costs that occur for each purchase order or production order above the purchase order price or the cost of production regardless of the lot size. The ordering costs increase as the number of orders placed increases. They include, for example, costs related to the clerical work of preparing, releasing, and monitoring orders.

Smart SAP Assistant

• Key Concepts: 
  Lot-size-independent costs are costs that are not dependent on the quantity of a material that is produced or procured. These costs are incurred regardless of the lot size and are usually fixed costs. Examples of lot-size-independent costs include setup costs, tooling costs, and administrative costs. 
  
  How to use it: 
  In SAP PP-MRP Material Requirements Planning, lot-size-independent costs can be used to calculate the total cost of a material. This cost is then used to determine the optimal lot size for the material. The lot size is determined by taking into account both the fixed and variable costs associated with producing or procuring the material. 
  
  Tips & Tricks: 
  When calculating the total cost of a material, it is important to consider both the fixed and variable costs associated with producing or procuring the material. This will ensure that the optimal lot size is determined for the material. 
  
  Related Information: 
  Lot-size-independent costs can also be used in other areas of SAP such as inventory management and production planning. Additionally, lot-size-independent costs can be used to calculate the total cost of a product or service.