Short and sweet: Minimum lot size

After explaining the “fixed lot size” in the last issue, we now continue with a further specification:

When determining lot sizes for production or procurement in an MRP process, the “minimum lot size” can be used as a guard rail. If a lot-sizing procedure determines a lot size that is below the minimum lot size, the MRP lot size is increased to the minimum lot size. Minimum lot sizes can be used to ensure that a production or procurement quantity is not below a technically required or economically desired value.

Our tip: Check the minimum lot sizes at least twice a year to ensure that they are not set too high.

Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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