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

SAP Term: MRP lot size

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A key that defines which lot-sizing procedure the system uses for calculating the quantity to procure in the MRP run.

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• Key Concepts: 
  MRP lot size is a term used in the Material Requirements Planning (MRP) component of SAP. It is the quantity of a material that is planned to be procured or produced in a single order or production run. The MRP lot size helps to determine the optimal order quantity for a material, taking into account factors such as lead time, inventory levels, and cost. 
  
  How to use it: 
  In SAP, the MRP lot size can be set up in the material master record. The system will then use this value to calculate the optimal order quantity for the material. The MRP lot size can also be changed manually in the MRP run. 
  
  Tips & Tricks: 
  When setting up the MRP lot size, it is important to consider factors such as lead time, inventory levels, and cost. A larger lot size may result in lower costs but may also lead to higher inventory levels and longer lead times. It is important to find a balance between these factors when setting up the MRP lot size. 
  
  Related Information: 
  The MRP lot size is closely related to other concepts such as safety stock and reorder point. Safety stock is an additional amount of inventory that is kept on hand to ensure that there are no stock-outs due to unexpected demand or supply disruptions. The reorder point is the level at which an order should be placed for a material in order to maintain desired inventory levels.