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Lot-for-Lot Order Quantity

Specifies that the lot-for-lot order quantity is to be used in the calculations of Supply Network Planning (SNP) and Production
Planning and Detailed Scheduling (PP/DS).

Use
Use in SNP
This indicator is used in both heuristic-based planning and optimization-based planning. If you set the indicator, the system
creates orders for the exact demand quantity to fulfill the demand.
If you have defined a rounding value on the Lot Size tab page (the Quantity and Date Determination sub page) of the location
product master, the system creates orders for the rounding value amount or a multiple of this value. The system also takes into
account all the other lot size settings of the location product master when creating orders, such as minimum and maximum lot
sizes and a rounding profile (only possible for heuristic).

Definition: lot-for-lot order quantity


Production Planning and Detailed Scheduling (SCM-APO-PPS)
Criterion for calculating the lot size.
If this criterion is selected, an order (planned order or purchase requisition) for the exact shortage quantity is created for every
shortage situation.
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Definition: lot-for-lot order quantity

Definition: heuristic-based planning


Supply Network Planning (SNP) (SCM-APO-SNP)
Planning that uses the SNP heuristic. The SNP heuristic plans demand over the entire supply chain network (cross-location
planning) and creates a medium-term production and distribution plan. It does not take into account any constraints or costs,
which means that the plan created will not necessarily be feasible. In a second step after the heuristic run, the planner can then
adjust the plan using capacity leveling in interactive SNP planning in order to create a plan that is feasible.
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Definition: heuristic-based planning

Definition: optimization-based planning


Supply Network Planning (SNP) (SCM-APO-SNP)
Type of planning using the SNP optimizer. Cost is the crucial aspect of this type of planning (costs for procurement, production,
storage, and transportation, for example). The SNP optimizer searches through all "feasible" plans in an attempt to find the most
cost-efficient in terms the total costs.
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Definition: optimization-based planning

Fixed Lot Size


Specifies that a fixed lot size is used in Supply Network Planning (SNP) and Production Planning and Detailed Scheduling
(PP/DS) calculations.

Use
Use in SNP
This indicator is used in heuristic-based planning and optimization-based planning. If you set this indicator, the system
creates orders to the specified fixed lot size to fulfill demand.
The system ignores all other fixed lot size settings from the location product master, such as minimum and maximum lot size,
rounding value or rounding profile.

Definition: fixed lot size


APO Cross-Application Components (SCM-APO-CA)
Criterion for calculating the lot size.
If this criterion is selected, an order proposal (planned order or purchase requisition) is created for the quantity specified for the
lot size, whenever a product shortage has been recognized.
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Definition: fixed lot size