What is maximum lot size in SAP SCM-APO-PPS - Production Planning and Detailed Scheduling?

SAP Term: maximum lot size

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Quantity that must not be exceeded during procurement. The maximum lot size can be taken into consideration during the procurement quantity calculation.

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• Key Concepts: 
  Maximum lot size is a parameter used in Production Planning and Detailed Scheduling (PPS) in SAP's Supply Chain Management (SCM) module. It is used to define the maximum quantity of a product that can be produced in a single production run. This parameter helps to ensure that production runs are not too large, which can lead to excessive inventory and higher costs.
  
  How to use it: 
  The maximum lot size parameter can be set in the PPS module of SAP SCM. It is typically set based on the expected demand for the product, the cost of production, and the availability of resources. The maximum lot size should be set to a level that ensures efficient production without creating excess inventory.
  
  Tips & Tricks: 
  It is important to regularly review the maximum lot size parameter to ensure it is still appropriate for the current demand and production environment. If demand increases or resources become more limited, the maximum lot size should be adjusted accordingly.
  
  Related Information: 
  The maximum lot size parameter is closely related to other parameters such as minimum lot size, safety stock, and reorder point. These parameters should all be considered when setting the maximum lot size in order to ensure efficient production and inventory management.