Sap Lot Sizing

Topics: Holding cost Pages: 2 (318 words) Published: January 7, 2011
Configuration of the SAP lot Sizing Parameter
YES Customer-specific NO Enter lot size restrictions • Min lot size (e.g. quoted by production or supplier) • Max lot size (e.g. quoted by production, supplier or inventory) • Fix lot size (technical restricitons: tanks, palettes, boxes)


FX/FS: Fix lot size • Can be entered as fix lot size restriction


Application of additional lot size method: • L-parts and limited stockroom • AND: Z-parts and not demand-driven • AND: no saisonal material (Z-categorization valide valid over all periods) • AND: NO 'replenishment to maximum level' (holding costs are not negligible compared to order costs) YES Position in product life cycle

New/phase-in material (no demand history)

Established material

Old/phase-out material • Last order

Saisonal material NO


Optimizing method • A or B item • Demand-driven OR MTO • Consumption-based OR demand planning with forecast for BOM top-level and X,Y item • Inventory holding cost and order cost known • No planning in fixed order-/delivery-intervals OR this is not focus of the lot-size planning • If limited stockroom: no Y/L parts Else: Periodic method • Demand-driven OR MTO • Consumption-based or demand planning with forecast for BOM top-level and X, Y item • AND/OR A-item (including A/Z-items) • AND/OR: Planning in fixed order-/delivery-intervals (including Z-items) Else: Static method • 'Replenishment to maximum level' (high order costs, negligible holding cost, limited stockroom and/or technical requirement, e.g. silo, tank) • Remaining materials: 'EX'(exact lot size); in particular for B/Z and C/Z items, when consumption-based or BOM top-level and forecast is conducted




'Replenishment to maximum level' • high order costs, negligible holding cost, limited stockroom • AND/OR technical requirement, e.g. silo, tank Hourly lot size – A/X item – OR: very limited storage and L or N-item – OR: very high rate of obsolescence (...
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