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Apr 28, 2014 at 11:29 AM

Optimum Lot Sizing Procedure

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No. of POs per year Purchase Cost Storage Cost (20 %) Total Cost Purchase Value Purchase Quantity 1 800,000 2,400,000,000 2,400,800,000 120,000,000 1200 2 160,000 13,200,000 14,800,000 60,000,000 600 3 240,000 8,800,000 11,200,000 40,000,000 400 4 3,200,000 6,600,000 9,800,000 30,000,000 300 5 4,000,000 5,280,000 9,280,000 24,000,000 240 6 4,800,000 4,400,000 9,200,000 20,000,000 200 7 5,600,000 3,771,429 9,371,429 17,142,857 171 8 6,400,000 3,300,000 9,700,000 15,000,000 150

Hi All,

I need total requirements of 1200 EA around the year from a specific material, if i issue one PO per year for total quantity of 1200 the total cost will be as shown above, if i issue two POs (one PO every 6 months with total quantity of 600) the total cost will be as shown above, the optimum quantity is 200 and 6 POs (one PO every 2 months with total quantity of 200) as the cost will be at its minimum.

Line no. 6: the optimum quantity that should be suggested by MRP run is 200 EA as the total cost is 9,200,000 (the lowest cost).

I want to use dynamic reorder point (MRP type V2) and dynamic lot size(DY) in MRP1 view i choose MRP type V2, Lot size DY,Reorder Point 300, Safety Stock 100, Ordering Cost 800,000 and Storage Cost ind. 1 ( represent 20%) but when i save the material the system issue the below message:

MRP type V2 requires forecasting data to be maintained so please help me to understand which data i have to maintain to use optimum lot sizing procedure to meet the above requirements.

If you could help me with an example and screenshot i'd be grateful. Thanks in advance.

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