What is 'planned lot size' in SAP PP - Production Planning and Control?

planned lot size - Overview

• Component: PP

• Component Name: Production Planning and Control

• Description: The lot-size value that the system uses as a default during costing. Non-proportional costs refer to this value.

planned lot size - Details

• 
  Key Concepts: 
  Planned lot size is a production planning and control component in SAP that determines the optimal lot size for a given production order. It is based on the forecasted demand, the available capacity, and the cost of production. The planned lot size helps to ensure that the right amount of material is produced at the right time, while minimizing costs.
  
  How to use it: 
  In SAP, planned lot size can be set up in the production planning and control module. The user can enter the forecasted demand, available capacity, and cost of production into the system. The system will then calculate the optimal lot size for the given production order.
  
  Tips & Tricks: 
  When setting up planned lot size in SAP, it is important to consider all factors that may affect the optimal lot size. This includes factors such as lead time, inventory levels, and customer demand. It is also important to consider any potential changes in demand or capacity that may occur over time.
  
  Related Information: 
  Planned lot size is closely related to other production planning and control components such as material requirements planning (MRP) and capacity requirements planning (CRP). These components help to ensure that materials are available when needed and that capacity is used efficiently.