Remaining Lot-for-Lot Order Quantity 

Use

With the remaining lot-for-lot order quantity, a procurement planning heuristic from Production Planning and Detailed Scheduling (PP/DS) creates the last receipt in a specific time period with a reduced receipt quantity, and not according to the lot-sizing procedure that has been set. The aim is that the available quantity is 0 at the end of the time period. By planning with the remaining lot-for-lot order quantity, you can prevent procurement planning creating too large a receipt for a product that is being discontinued, and thus leading to surplus stock, which would possibly represent scrap.

The PP/DS horizon is the period for a non-interchangeable product. For a product that belongs to a supersession chain, the reference period is the validity period of the product. However, the remaining lot-for-lot order quantity is only used here if the validity period ends within the PP/DS horizon.

There could be more requirements, which the system can cover with regular receipts, lying between the end of the PP/DS horizon and the end of the validity period (that reaches beyond the end of the PP/DS horizon). Therefore, the system does not reduce the last receipt in the PP/DS horizon in this case.

The following applications do not take the remaining lot-for-lot order quantity into consideration:

·        Heuristics that use their own lot-sizing procedure for the procurement quantity calculation, and not a standard lot-sizing procedure

·        Heuristics that execute procurement planning according to a reorder point method

For products that you plan using this method, you have to adjust the reorder point in good time before the discontinuation date, or set it to 0.

·        Supply Network Planning

·        Capable-to-Match

Prerequisites

If you want to plan using the remaining lot-for-lot order quantity, you set the Last Lot Exact indicator on the Lot Size tab page in the location product master.

This setting is product-specific and is therefore not available in the lot-size settings of a procurement planning heuristic.