What is 'minimum lot size' in SAP SRD-SCM-MD - SCM-Master Data?

minimum lot size - Overview

• Component: SRD-SCM-MD

• Component Name: SCM-Master Data

• Description: The lower limit of finished goods that can be produced in one order, using a production model.

minimum lot size - Details

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  Key Concepts: 
  Minimum lot size is a term used in SAP's Supply Chain Management (SCM) Master Data module. It is the smallest quantity of a product that can be ordered or produced. This quantity is determined by the supplier or manufacturer and is used to ensure that orders are cost-effective and efficient.
  
  How to use it: 
  In SAP, minimum lot size is set up in the SCM Master Data module. The user can enter the minimum lot size for each product and this will be used to determine the order quantity when creating a purchase order or production order. The user can also set up a default minimum lot size for all products if desired.
  
  Tips & Tricks: 
  When setting up minimum lot size in SAP, it is important to consider the cost of ordering and producing the product. If the minimum lot size is too small, it may not be cost-effective to order or produce the product in small quantities. On the other hand, if the minimum lot size is too large, it may not be possible to meet customer demand. 
  
  Related Information: 
  Minimum lot size is related to other terms such as maximum lot size, safety stock, and reorder point. Maximum lot size is the largest quantity of a product that can be ordered or produced, while safety stock is an extra amount of inventory