Lot Sizing Procedures with Make-to-Order and Assemble-to-Order Strategies

[former_member196525]

Hello. Similar to the question posted here:

https://answers.sap.com/questions/4934390/planned-orders-with-minimum-lot-size-in-make-to-or.html

Trying to figure out a way to have the planned orders in the 'Preplanning w/o Assembly' section of MD04 follow the defined lot size in the material master for the VSE PIRs. I understand the standard SAP functionality is to have EX lot sizing for all MTO and ATO strategies. I also read through SAP Note: '125498 - MRP/Docu: Planning segment and lot-for-lot order quantity'.

However, What about when it is required for accurate capacity requirements? The system will not generate accurate capacity requirements when the planned orders are lumping all of the volume into 1 planned order. If I have a monthly PIR for 100,000 lbs. but I always produce the batches in lot's of 5,000 lbs., my capacity requirements will be assuming setup of only 1 order. When in reality, when that customer order comes in for 100,000, I'm going to be setting up 20 orders...not 1. Hope this made sense. Any thoughts?

[rupesh_brahmankar3]

Hello,

I tried OMI4 setting of Lot Size: MtO (LGKND)= 2 Lot size as in short-term period. Assign this to material master with fix lot size as 5,000 lbs. However it does not work with VSE IndReq.

If you split the PIR into daily requirement then it works as you expected.

Best Regards,

R.Brahmankar

[former_member196525]

I appreciate you testing that out. Unfortunately, I was getting the same results 😞

I am surprised this is not possible. Do a lot of companies not use SAP for their capacity planning if they are using these MTO and ATO strategies?

[rupesh_brahmankar3]

Hello,

Could you please share screen shot of MD63 and MD04?

Best Regards,

R.Brahmankar

[former_member196525]

screenshot.jpg

[rupesh_brahmankar3]

Hello,

You have to split the PIR into daily requirement from monthly here, then it works as you expected.

You can split the PIR quantity into daily buckets using MD67 too.

Best Regards,

R.Brahmankar

[former_member196525]

Yeah. Caetano mentioned that in his response above. I was trying to avoid splitting the PIRs into daily quantities. I feel like that would end up being a lot of maintenance with creating and assigning MRP Groups since some products could get away with monthly volumes, while others could use daily, weekly, bi-monthly splitting. Even so, the daily split still may not fully get us there since we can produce multiple batches per day.

[Caetano]

Hi Kevin

You can split the PIR quantity into daily buckets using MD67, instead o having the total PIR quantity in a single day in the period start.

For make-to-order, it is possible to use a different lot-sizing procedure. There is a setting in the lot-sizing procedure customizing that allows you to choose which logic will be used for the lot-sizing calculation in MTO. The default value in the standard lot-sizing procedures is to use the lot-for-lot logic, but you can create a custom lot-sizing procedure and change this logic.

Regards,
Caetano

[former_member196525]

Thank you for the response. Yes, I was trying to avoid splitting the PIRs into daily quantities. I feel like that would end up being a lot of maintenance with creating and assigning MRP Groups since some products could get away with monthly volumes, while others could use daily, weekly, bi-monthly. Even so, the daily split still may not fully get us there since we can produce multiple batches per day.

I did try the custom lot sizing using OMI4 but similar to what R Brahmankar mentions below, I could not get it work with VSE or other PIR types that are required with the MTO and ATO strategies (where the generated planned orders are non convertible) in that separate planning section of MD04 (Preplannig w/o Assembly for example).

Happen to have any other thoughts?

[Caetano]

Hello

Note 125498 is very clear: It is not possible to use any other lot-sizing procedure rather than lot-for-lot when using this kind of planning strategy.

But anyway, those planned orders created for independent requirements are of type VP, which means you cannot convert or do anything with those orders before you have an actual sales order.

Once you receive a sales order, then a real planned order is generated and you can then use a different lot-sizing procedure using the mentioned setting in the lot-sizing procedure.

Regards,

Caetano

[former_member196525]

Understood. But the system is using those planned orders to project capacity requirements in CM01 and CM38. I understand Note 125498 as well, I just think they're not factoring in the impact this is having on being able to project capacity requirements. I suppose PIR splitting is the only thing that would get us close. Will just end up getting complicated as different materials will require different splitting rules depending on projected monthly volumes and manufacturing base quantities. Thanks again for your thoughts.

Regards,

Kevin

[former_member304513]

Hi Kevin,

What you are saying is completely right. As you know MRP works with infinite capacity. It means that system assumes you could produce even 100,000 pcs in a single day. Even if you use Fix lot size, system will still create, say 20 orders, to be produced on the same day. There is no solution to this problem in Standard SAP.

However, SAP released a Add-on tool called LMPC which exactly intends to solve the mentioned problem. May be you would like to read

https://blogs.sap.com/2019/10/28/add-on-tool-lmpc-lean-manufacturing-planning-control

Hope this helps.

Regards,

Himanshu