Lot-Size Calculation

SAP AG

SAP AG

TAMM10 4.0B

35-1

Lot-Size Calculation: Unit Objectives

At the conclusion of this unit,
you will be able to:
Name and distinguish between various
static and period lot-sizing procedures
Explain the additional restrictions for the
lot size, for example, the minimum lot size
or the maximum lot size

SAP AG

SAP AG

TAMM10 4.0B

35-2

Lot-Size Calculation: Business Scenario

The system determines material shortages
for requirement dates in the net
requirements calculation. These shortage
quantities must now be covered by
receipts. The system calculates the receipt
quantity in the lot-size calculation which is
carried out during the planning run. You
specify how the system is to determine the
lot size by selecting one of the lot-sizing
procedures in the material master record.

SAP AG

SAP AG

TAMM10 4.0B

35-3

Lot-Sizing Procedures: Overview

Lot-sizing procedures
Static
procedures

Periodic
procedures

Optimum
procedures

Lot-for-lot order quantity

Daily lot size

Part period procedure

Fixed lot size

Weekly lot size

Least unit cost procedure

Replenishment up to
maximum stock level

Monthly lot size

Groff reorder procedure

Planning calendar

Dynamic Cost planning

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SAP AG

The system determines material shortages for requirement dates in the net requirements calculation.
These shortage quantities must now be covered by receipts. The system calculates the receipt quantity in
the lot-size calculation which is carried out during the planning run. You specify how the system is to
determine the lot size by selecting one of the lot-sizing procedures in the material master record.
Three groups of procedures exist for calculating the lot size:
In the static lot-sizing procedures, the lot size is calculated using only the entered quantities in the
materials master record.
The period lot-sizing procedures groups together requirements from one or several periods to form
a lot.
The optimum lot-sizing procedures groups requirements from several periods together to form a
lot, whereby an optimum cost ratio is determined between lot size independent costs and storage
costs.
The system uses the result of the lot-size calculation as the quantity for production or procurement of
the material. You can display and change this procurement proposal.
You can also specify additional restrictions when maintaining the material master record which the
system takes into account during lot sizing. These restrictions include minimum lot size and maximum
lot size.

SAP AG

TAMM10 4.0B

35-4

Static Lot-Sizing Procedure

Lot-for-lot order quantity
Quantity
Receipts
Issues

Time
Fixed lot size

Replenishment up to
stock level
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SAP AG

In static lot-sizing procedures, future shortages are not taken into account, that is, if a shortage exists,
an order proposal is created for the amount defined for the static lot size. The system does not check to
see when a future shortage exists.
If you select the lot-for-lot order quantity, an order proposal is created for the shortage quantity. If
several issues exist on one day that cannot be covered, the system still only creates one order proposal
covering the total shortage quantity on this particular day.
If you select the fixed lot size, the system creates an order proposal for the fixed lot size if a material
shortage occurs. If this is not sufficient to cover the shortage quantity, then the system creates several
order proposals for the same date until the shortage is covered.
If you select replenishment up to maximum stock level, when a material shortage occurs, the system
creates an order proposal for the amount required to bring the stock level up to the maximum stock level
recorded in the material master record.

SAP AG

TAMM10 4.0B

35-5

Period Lot-Sizing Procedures

Quantity

Time
Period length

Receipts
Issues

Period length
Day(s)
Week(s)
Month(s)
Period according to
planning calendar

SAP AG

In period lot-sizing procedures, the system groups several requirements within a time interval together
to form a lot. The period lengths can be either days, weeks, months or a period of flexible length equal
to posting periods as well as freely definable periods according to a planning calendar.
Daily lot size: All requirement quantities that fall within a day or within a specific number of days
(which you have determined) are grouped together to form a lot.
Weekly lot size: All requirement quantities that fall within a week or within a specific number of weeks
(which you have determined) are grouped together to form a lot.
Monthly lot size: All requirement quantities that fall within a month or within a specific number of
months (which you have determined) are grouped together to form a lot.
Lot size according to flexible period length: All requirement quantities that fall within one flexible
period length or within a specific number of flexible period lengths (which you have determined) are
grouped together to form a lot. You determine the period lengths according to the accounting periods.
This lot size is also called period lot size.

SAP AG

TAMM10 4.0B

35-6

Lot-Size Rounding
Material 1
Material

Rounding value: 100

100
50

Material 2
Material

100
Rounding profile: 0001
75
Customizing

50
Rounding profile 0001
Rounding value 25
from 25
50
from 75
100

Receipts

Issues

SAP AG

By entering additional restrictions in the material master record, you can influence the grouping
together of requirements to form a lot. By specifying a rounding value, for example, the system will
determine during lot-size calculation that the lot size quantity is a multiple of an order unit (for example,
pallet size if the material is only delivered in entire pallets).
In addition to that, you can use rounding profiles. A rounding profile is used to define settings for the
rounding up or rounding down of the order proposal quantity to deliverable units.
You define the rounding profiles in Customizing. A rounding profile consists of the threshold value and
the rounding value. The treshold value is the value from which the system should round up to the value
per deliverable unit. The rounding value is the value from which the system should round up as soon as
the threshold value is exceeded.
For one rounding profile, you can define several combinations of threshold and rounding values.

SAP AG

TAMM10 4.0B

35-7

Minimum Lot Size / Maximum Lot Size

Material 1
Minimum lot size

50
50

Material 2
Maximum lot size 50

Receipts

50

Issues

SAP AG

You can influence the grouping of requirements to form a lot by entering additional restrictions in the
material master record. For example, you can define limiting values (minimum lot size, maximum lot
size). During lot-size calculation, the system takes into account these limiting values. That is, the lot
size is either rounded up to the minimum lot size, or the system prevents the grouping of requirements to
form more than the maximum lot size.

SAP AG

TAMM10 4.0B

35-8

Lot-Size Calculation: Summary

Static lot-sizing procedures are: Lot-for-lot order

quantity, fixed lot size, and replenishment up to

maximum stock level.
The fixed order quantity or the procedure entitled
replenishment up to maximum stock level are
both recommended for reorder point planning.
In period lot-sizing procedures, the system
groups several requirements within a time
interval together to form a lot. The period lengths
can be either days, weeks, months or a period of
flexible length equal to posting periods as well
as freely definable periods according to a
planning calendar.
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SAP AG

SAP AG

TAMM10 4.0B

35-9