What is lot size planning in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: lot size planning

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Planning procedure that generates receipts based on requirements forecast requirements, customer requirements, secondary requirements, and distribution requirements, and then groups these receipts into larger production quantities. This reduces setup costs and setup times, for example, or optimizes use of bottle neck resources. It is possible to produce quantities over several periods. If a product can be produced by the same production process model PPM as the previous period, potential setup activities will be omitted. There is a lower level of lot size planning in the process industry rough-cut planning for campaign planning in Production Planning and Detailed Scheduling PP/DS.

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• Key Concepts: 
  Lot size planning is a component of SAP Supply Network Planning (SNP) that helps to optimize the production and distribution of goods. It enables companies to plan the production and distribution of goods in a way that minimizes costs and maximizes efficiency. Lot size planning helps to determine the optimal lot size for each product, taking into account factors such as demand, supply, inventory levels, and lead times. 
  
  How to use it: 
  Lot size planning can be used to determine the optimal lot size for each product. This can be done by analyzing factors such as demand, supply, inventory levels, and lead times. The lot size can then be adjusted accordingly to ensure that the production and distribution of goods is optimized. 
  
  Tips & Tricks: 
  When using lot size planning, it is important to consider all relevant factors such as demand, supply, inventory levels, and lead times. Additionally, it is important to regularly review the lot sizes to ensure that they are still optimal for the current situation. 
  
  Related Information: 
  Lot size planning is closely related to other components of SAP Supply Network Planning (SNP) such as demand planning and supply chain optimization. Additionally, it is also related to other SAP modules such as Materials Management (MM) and Production Planning (PP).