What is production cycle lot size in SAP SCM-IBP-PLA - Planning Framework?

SAP Term: production cycle lot size

• Component: SCM-IBP-PLA

• Component Name: Planning Framework

• Description: A lot-sizing procedure according to which a location product is produced at a definable frequency for example, every 90 days and therefore only in certain periods. The quantity produced in a period where production takes place covers the demand of that period and all subsequent periods until the next period where production occurs. The frequency in which a product is produced is called a production cycle. This lot-sizing procedure applies only to production sources of supply.

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• Key Concepts: 
  Production cycle lot size is a concept used in the SAP SCM-IBP-PLA Planning Framework. It is a measure of the quantity of a product that is produced in a single production cycle. This quantity is determined by the production capacity, the availability of raw materials, and the demand for the product. 
  
  How to use it: 
  The production cycle lot size is used to determine the optimal production plan for a given product. It helps to ensure that the right amount of product is produced in each cycle, taking into account the demand for the product and the availability of raw materials. The production cycle lot size can be adjusted to meet changing demand or supply conditions. 
  
  Tips & Tricks: 
  When setting up a production plan, it is important to consider the production cycle lot size. This will help to ensure that the right amount of product is produced in each cycle, and that there are no shortages or excesses. It is also important to monitor changes in demand or supply conditions, as these can affect the optimal production cycle lot size. 
  
  Related Information: 
  The SAP SCM-IBP-PLA Planning Framework also includes other concepts such as inventory management, capacity planning, and demand forecasting. These concepts are all related to production cycle lot size and should be taken into consideration when setting up a production plan.