What is part period balancing in SAP PP-MRP - Material Requirements Planning?

SAP Term: part period balancing

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A procedure in material requirements planning for calculating the lot-size that optimizes total setup and storage costs optimized lot-sizing procedure. Starting from the material shortage date, consecutive requirements quantities are collected in a lot until the total storage costs equal the fixed costs for the lot-size.

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• Key Concepts: 
  Part period balancing is a feature of SAP's Material Requirements Planning (MRP) component. It is used to ensure that the material requirements for a given period are met, and that the supply of materials is balanced with the demand. It helps to ensure that the right amount of materials are available at the right time, and that there is no over- or under-supply of materials. 
  
  How to use it: 
  Part period balancing can be used to plan and manage material requirements for a given period. It can be used to determine the amount of materials needed for a given period, and to adjust the supply of materials accordingly. It can also be used to identify potential shortages or surpluses of materials, and to take corrective action if necessary. 
  
  Tips & Tricks: 
  When using part period balancing, it is important to consider the lead times for ordering and receiving materials. This will help ensure that the right amount of materials are available at the right time. It is also important to consider any seasonal fluctuations in demand, as this may affect the amount of materials needed for a given period. 
  
  Related Information: 
  Part period balancing is closely related to other features of SAP's MRP component, such as lot-sizing and safety stock calculations. It is also related to inventory management, as it helps to ensure that the right amount of materials are available when needed.