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MTO and Fixed Batch Size

In Pharmaceutical business, finished products are manufactured based on fixed batch sizes. Guess this can be controlled by Fixed Lot Size in the material master!!! However for a make-to-order scenario, the incoming sales order quantity may not match with the batch size. Assuming that SO quantity is less than the Fixed Lot Size, how much quantity of the manufactured batch size will the system assign to the sales order? Will the whole batch quantity be assigned to the SO or only to the extent equal to the SO quantity?

Regards

Sanjay

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2 Answers

  • Posted on Jul 15, 2013 at 04:09 AM

    Hi,

    I am not sure if you are looking for an answer here but thought will throw my inputs.

    I would say that in MTO you are manufacturing product based on what you want to produce and how much you want to produce. This could mean that the SO Qty might be :

    < then Batch Quantity

    = Batch Quantity

    = Made of more than one batch.

    Thanks.

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  • Posted on Sep 04, 2013 at 07:37 AM

    Dear Sanjay,

    We've faced the same problem. We resolved this by adding rounding rules in SD (Rounding Profile in Sales Org 1 tab).

    With this rounding you have to take into account the batch size of, I suppose of the bulk, and the correct component scrap percentage.

    An example:

    BOM:

    Finished Product = standard 1000 pcs

    Item Bulk = 75 kg and 5% component scrap

    Fixed lot size of Bulk = 500 kg

    • According to BOM: with 75KG > 1000pcs/(1 + scrap) or 1000/(1+0.05) = 952,38pcs
    • For Fixed Lot Size: 952,38 * (500/75) = 6.349ST (always round down)

    This quantity (6.349 ST) is the maximum lot size (MRP 1) of the finished product.

    Whenever a Sales Order is entered, the rounding profile will lead the order intake to the correct batch size, which in the end let's MRP choose the correct batch size for the finished and leads to the correct batch size for the bulk.

    Hope this will help you.

    Regs,

    Ruud

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