Understanding the Lot Size Calculation

Objective

After completing this lesson, you will be able to control lot size calculation for a material.

Lot Sizing Procedures

The lot-size calculation takes place during the planning run after the net requirements calculation.

So far, we have seen that the net requirements calculation determines the shortage quantities for the respective requirements dates. These shortage quantities must be covered by order proposals. Lot-size calculation is the process of calculating the order proposal quantities, which are not necessarily equal to the shortage quantities.

Let's listen to Julia, our virtual instructor, as she introduces the topic in the following video.

The previous video provided an overview of the existing standard lot-sizing procedures. In the next step, we'll look at how we can further control the procurement proposal quantities in SAP S/4HANA.

Rounding

When maintaining the material master record, you can specify additional requirements for lot size calculation. These include lot size rounding and minimum and maximum lot sizes.

You can use lot size rounding to adjust the procurement quantities to the restrictions of the delivery, packaging, and transport units. This can be useful, for example, if the ordered quantities can only be delivered in boxes containing a certain number of pieces, or if the quantities can only be packed and transported in full pallets.

During the planning run, to determine the procurement quantity, the system first calculates the net requirements, then applies the specified lot-sizing procedure and finally rounds up the quantity, if rounding instructions have been maintained in the material master record.

The image shows a screenshot of the Change Material app. It focuses on the MRP data and highlights the two ways in which rounding data can be maintained: the rounding profile and the rounding value.

The following options are available for maintaining rounding data in the material master record:

  • Rounding Value: If you have maintained a rounding value, the system rounds the calculated quantity to the multiple of this value.

  • Rounding Profile:

    Using a rounding profile allows for scaled rounding.

    Rounding profiles must be configured individually. SAP does not deliver default settings. Once your configuration expert has created and configured a rounding profile, you can assign it in a material master record.

    A rounding profile consists of threshold values and rounding values. The threshold is the value at which the system rounds up. The rounding value is the value to which the system rounds up when the threshold is exceeded.

    If the requirement value exceeds the first threshold, the system rounds up to the next multiple of the rounding value found.

    If the requirement value falls below the first threshold, the system uses the original requirement value.

    Example of a Rounding Profile

    Consider the following scenario: A material is managed in pieces; it should be delivered in layers (1 layer equals 5 pieces) or in pallets (1 pallet equals 8 layers equals 40 pieces). You have created the following rounding profile in Customizing:

    Threshold ValueRounding Value
    25
    3240

Let's look at some examples of the order quantities that would result from using such a profile:

Calculated order quantity before roundingOrder quantity after roundingExplanation
11The requirement value is less than the first threshold (2). That's why the system does not round up.
25The first threshold is reached. The system rounds up to 5.
6105 is included in 6. For the remaining 1 piece, the system rounds up to 5. This results in a procurement quantity of 10 pieces.
7105 is included in 7. For the remaining 2 pieces, the system rounds up to 5. This results in a procurement quantity of 10 pieces.
21255 is included 4 times in 21. For the remaining 1 piece, the system rounds up to 5. This results in an order quantity of 25.
31355 is included 6 times in 31. For the remaining 1 piece, the system rounds up to 5. This results in an order quantity of 35.
3240The second threshold is reached. The system rounds up to 40.
414540 is included once in 41. For the remaining 1 piece, the system rounds up to 5. This results in an order quantity of 45 pieces.
748040 is included once in 80. For the remaining 34 pieces, the system rounds up to 40. This results in an order quantity of 80 pieces.

Minimum and Maximum Lot Size

You can specify a minimum and maximum lot size in the material master record.

The figure shows a screenshot of the Change Material app. It focuses on the MRP data and highlights the minimum lot size and the maximum lot size.

These limits are taken into account when the system calculates the lot size. The minimum lot size defines the minimum quantity and the maximum lot size defines the maximum quantity for a procurement proposal.

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