What is lot-sizing procedure in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

SAP Term: lot-sizing procedure

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Procedure in production planning that is used to calculate the purchase order quantities of receipts. In the SAP APO Advanced Planner and Optimizer, the following standard lot-sizing procedures are available, which can be configured in the location product master. Exact lot size Fixed lot size Period lot size Reorder point procedure For further lot-sizing procedures there are special heuristics available, e.g. Groff lot-sizing procedure Reorder point planning

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• Key Concepts: 
  Lot-sizing procedure is a feature of the SAP SCM-APO-PPS Production Planning and Detailed Scheduling component. It is used to determine the optimal lot size for production orders, based on the available resources and the desired production rate. The lot-sizing procedure takes into account factors such as lead time, setup time, and inventory levels to determine the most efficient lot size.
  
  How to use it: 
  To use the lot-sizing procedure, first enter the desired production rate and available resources into the system. The system will then calculate the optimal lot size based on these inputs. The user can then adjust the lot size as needed to meet their production goals.
  
  Tips & Tricks: 
  When using the lot-sizing procedure, it is important to consider all of the factors that may affect the optimal lot size. This includes lead time, setup time, inventory levels, and any other factors that may affect production efficiency. Additionally, it is important to consider any constraints that may be in place, such as minimum or maximum order sizes. 
  
  Related Information: 
  The lot-sizing procedure is part of a larger suite of features in SAP SCM-APO-PPS Production Planning and Detailed Scheduling. Other features include demand forecasting, capacity planning, and material requirements planning (MRP). These features can be used together to create an efficient and effective production plan.