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Former Member

Way to use price scales in lot size optimization mrp

In ECC 6 there are several lot sizes that use lot sizing procedure o to optimize lot sizes (e.g., WI). However, none of them seem sensitive to the actual price as determined by a price scale on a contract. This can lead to situations where mrp proposes a lot size that may not be appropriate if a slightly greater quantity would lead to a lower unit price.

Is there any lot size optimization routine in ECC that is sensitive to price scales?

If not, does APO (PP/DS, SCM, etc..) allow this kind of optimization on procured materials? Where can I learn more?

Barron

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2012 at 02:03 PM

    Lot Size is primarily to determine the quantity of material for which orders are to be generated. It was not designed to search based on a pricing analysis, because you have both internal and external procurement involved here. So it could just be a material transfer from another location with no price involved at all.

    Now as for your query, you can achieve them by maintaining a Minimum Lot size for the Material in the event you are using Quota Arrangement to ensure the order is created for that quantity which can have a certain price scale in info record.

    Else, you can use Rounding Profile in the Material Master Record to convert the quantity, for instance say if Vendor A is ready to give me Material X based on following scales:

    0-100 - $10

    101-499 - $9

    >500 - $8

    So maintaining a Rounding Profile in MRP 1 view can be used to convert if the requirement is raised for this Material.

    But these are just workarounds and not direct methods, so I suggest you play around with a material in the system to achieve this as there are no other direct methods.

    /Manoj

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 09, 2012 at 04:44 PM

    As a simple fix, i believe this requirement can be handled via procedural discussion and master data set up between MRP and Procurement teams.

    As a guide:

    1. ensure that MRP lot size is consistent to Procurement Contract price scales so that you can maximize the price scale.

    OR

    2. use quota arrangement lot size settings to drive the PR and PO quantities to be in sync with Contract.

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