What is lot size in SAP SRD-SCM-SCP - SCM-Supply Chain Planning and Control?

SAP Term: lot size

• Component: SRD-SCM-SCP

• Component Name: SCM-Supply Chain Planning and Control

• Description: The standard quantity of a particular item in the production or purchasing process.

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• Key Concepts: 
  Lot size is a term used in SAP Supply Chain Planning and Control (SCM-SCP) to refer to the quantity of a product that is produced or ordered in a single batch. It is used to determine the optimal order quantity for a given product, taking into account factors such as cost, availability, and lead time. 
  
  How to use it: 
  In SAP SCM-SCP, lot size can be set up for each product in the system. This can be done by entering the desired lot size in the “Lot Size” field of the product master data. The system will then use this value to calculate the optimal order quantity for that product. 
  
  Tips & Tricks: 
  When setting up lot size for a product, it is important to consider factors such as cost, availability, and lead time. For example, if a product has a high cost and long lead time, it may be more cost-effective to order larger quantities at once. On the other hand, if a product has a low cost and short lead time, it may be more cost-effective to order smaller quantities more frequently. 
  
  Related Information: 
  Lot size is closely related to other concepts such as reorder point and safety stock. Reorder point is the quantity at which an order should be placed for a given product, while safety stock is an additional quantity of inventory that should be kept on hand in case of unexpected demand or supply disruptions.