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

SAP Term: minimum lot size

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: Minimum quantity that must be reached during procurement. The minimum lot size can be taken into account in lot-size calculation.

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• Key Concepts: 
  Minimum lot size is a term used in SAP's Material Requirements Planning (MRP) component. It is the smallest quantity of a material that can be ordered or produced in a single lot. This quantity is determined by the company and is used to ensure that the company does not order or produce too much of a material at once. 
  
  How to use it: 
  The minimum lot size can be set in the SAP system by going to the MRP1 view of the material master record. The minimum lot size can be set for both procurement and production orders. Once the minimum lot size has been set, it will be used by the system when creating orders for the material. 
  
  Tips & Tricks: 
  When setting the minimum lot size, it is important to consider the cost of ordering or producing too much of a material at once. If the cost of ordering or producing too much of a material is too high, then it may be beneficial to set a lower minimum lot size. 
  
  Related Information: 
  The minimum lot size is related to other terms such as maximum lot size and economic order quantity (EOQ). Maximum lot size is the largest quantity of a material that can be ordered or produced in a single lot, while EOQ is the optimal quantity of a material that should be ordered or produced in a single lot.