What is lot-for-lot order quantity in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

SAP Term: lot-for-lot order quantity

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Criterion for calculating the lot size. If this criterion is selected, an order planned order or purchase requisition for the exact shortage quantity is created for every shortage situation.

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• Key Concepts: 
  Lot-for-lot order quantity is a production planning and scheduling technique used in SAP's Advanced Planning and Optimization (APO) Production Planning and Detailed Scheduling (PPS) component. It is a type of fixed order quantity (FOQ) that determines the amount of material to be produced or procured based on the exact amount of material needed to fulfill customer orders. This method is used when the demand for a product is relatively stable and predictable. 
  
  How to use it: 
  In SAP APO PPS, lot-for-lot order quantity can be set up by creating a production plan with the FOQ type set to “Lot-for-Lot”. This will ensure that the system calculates the exact amount of material needed to fulfill customer orders. The system will then generate a production plan based on this information. 
  
  Tips & Tricks: 
  When using lot-for-lot order quantity, it is important to ensure that the demand for the product is relatively stable and predictable. If there are sudden changes in demand, it may be necessary to adjust the production plan accordingly. Additionally, it is important to monitor inventory levels closely to ensure that there is enough material available to fulfill customer orders. 
  
  Related Information: 
  Lot-for-lot order quantity is one of several fixed order quantity techniques available in SAP APO PPS. Other FOQ techniques include fixed order interval (FOI), fixed order multiple (FOM), and fixed order period (FOP). Each technique has its own advantages and disadvantages, so it is important to choose the one that best fits your business needs.