What is optimum lot-sizing procedure in SAP PP-MRP - Material Requirements Planning?

SAP Term: optimum lot-sizing procedure

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A procedure that groups requirements from several periods to form a lot, in which an optimum cost ratio is determined between lot size independent costs and storage costs. The difference between the following procedures is the minimum cost: Part period balancing Least unit cost procedure Dynamic lot size creation Groff reorder procedure

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• Key Concepts: 
  The Optimum Lot-Sizing Procedure is a component of SAP's Material Requirements Planning (PP-MRP) module. It is used to determine the most efficient lot size for a given material or product, taking into account the cost of production, inventory, and other factors. The procedure helps to minimize costs and maximize efficiency by finding the optimal lot size for each material or product. 
  
  How to use it: 
  The Optimum Lot-Sizing Procedure can be used in SAP's PP-MRP module to determine the most efficient lot size for a given material or product. The procedure takes into account the cost of production, inventory, and other factors to determine the optimal lot size. Once the optimal lot size has been determined, it can be used to plan production and inventory levels accordingly. 
  
  Tips & Tricks: 
  When using the Optimum Lot-Sizing Procedure, it is important to consider all relevant factors such as cost of production, inventory levels, and other factors. Additionally, it is important to keep in mind that the optimal lot size may change over time as production and inventory levels change. 
  
  Related Information: 
  The Optimum Lot-Sizing Procedure is just one component of SAP's PP-MRP module. Other components include Capacity Requirements Planning (CRP), Material Master Data (MMD), and Production Planning (PP). Additionally, there are other tools available in SAP that can help with material requirements planning such as Demand Management (DM) and Supply Network Planning (SNP).