12/4/24, 11:24 PM Optimum Lot Size "GR" - Groff Reorder Procedure - SAP Community

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Optimum Lot Size "GR" - Groff Reorder Procedure Labels In This Area
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Lot Sizing ABAP 5 abap cds 1

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Lot sizing allows us to define rules for the quantity of replenishment proposals
ABAP CDS Views 2
created by SAP. The lot sizing procedures available in SAP S/4HANA can be grouped
into the following ABAP CDS Views - BW Extraction 1

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Static lot-sizing procedures ABAP DDIC CDS view 1

abap development 2
Period lot-sizing procedures
ABAP Extensibility 1
Optimum lot-sizing procedures ABAP Programming 1 abapGit 1

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In this blog, I will explain one of the Optimum lot sizing procedures called "Groff
Reorder Procedure" Adobe form binding 1

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Advance Return Management 1

Groff Reorder Procedure Advanced Intercompany Sales… 1

Advanced SAP Techniques 1

Starting from the first requirement, the system groups requirements into a lot until the
average additional storage cost per period is greater than savings in the lot size ADVANCED VARIANT… 1
independent cost per period.
AgenticAI 1

It is recommended that you use Groff reorder procedure if the product has fairly AI and RPA in SAP Upgrades 1
regular requirements. API and Integration 1

Prerequisites Application Development for SAP… 1

Approval Workflows 1 Ariba 1

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Master Data Settings
ASN 1 Asset Management 1

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12/4/24, 11:24 PM Optimum Lot Size "GR" - Groff Reorder Procedure - SAP Community

In "MRP 1" view of the material master, select the required MRP type and then Associations in CDS 1
in the lot sizing parameters, select "GR" as lot size. Maintain the lot size
Associations in CDS Views 2
independent ordering cost and the storage cost indicator. In this example, we
are using 1000 as the ordering cost and the storage cost indicator is 1. Attachment List 1 auditlog 1

authorization 1

Auto PO from GR 1

Availability date 1

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Bank 2 BAPI_PO_CREATE1 1

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Business Trends 1

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MRP 1 View of the Material Master COPA 1 Copy Control 1

Copy Inspection Results 1

cost distribution TM 1

In the "Accounting 1" view of the Material Master, maintain the price for the
material. In this example, I have used a standard price of 10.

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Popular Blog Posts

IDoc Basics For Functional

Consultants

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Accounting 1 view of the Material Master

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Configuration Settings for Storage Costs

LSMW for Functional Consultants in
simple step-by-step way

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To maintain the storage costs indicator, navigate to IMG > Materials Active Contributor
Management > Consumption-Based Planning > Planning > Lot-Size
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Calculation > Define Lot-Sizing Procedure and click on "Storage Costs
Indicator". Alternatively use the T-Code OMI4. In this example, I have used
storage costs as 10%. This means, If the price of a material is $10, it would cost
$1 to store it for a period of 365 days.

Pricing procedure Steps and Details

in SAP MM

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Storage Costs Indicator - Configuration

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MRP Run

Planned independent requirements are maintained on a weekly basis in this

example. Starting from week 47, a weekly requirement of 1000 KG are
maintained.

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Planned Independent Requirements

Calculation

Formulas

Formulas

In the stock requirement screen below, you can see the system has grouped

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requirements from 20/11/2023, 27/11/2023, 04/12/2023 and 11/12/2023 into one

planned order of 4000 quantity.

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Stock/Requirements Screen

Explanation

For the first requirement on 20/11/2023, both the order cost savings and the
average additional storage costs is zero because the time in storage is zero.

For the requirement on 27/11/2023

Order Cost Savings = 1000 / (7 x = 17.857

Addl. Storage Costs = (1000 x 10 x 10 x 7) / (100 x 365) = 19.178

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Average Addl. Storage Costs = 19.178 / 14= 1.369

For the requirement on 04/12/2023

Order Cost Savings = 1000 / (14 x 15) = 4.762

Addl. Storage Costs = (1000 x 10 x 10 x 14) / (100 x 365) = 38.356

Average Addl. Storage Costs = 19.178 / 21 = 1.826

For the requirement on 11/12/2023

Order Cost Savings = 1000 / (21 x 22) = 2.164

Addl. Storage Costs = (1000 x 10 x 10 x 21) / (100 x 365) = 57.534

Average Addl. Storage Costs = 19.178 / 28 = 2.054

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For the requirement on 18/12/2023

Order Cost Savings = 1000 / (28 x 29) = 1.231

Addl. Storage Costs = (1000 x 10 x 10 x 28) / (100 x 365) = 76.712

Average Addl. Storage Costs = 19.178 / 35 = 2.191

As the additional storage cost increases over the period, the order cost savings
decreases. For the requirement dated 11/12/2023, you can see that the order costs
saving (2.164) is marginally larger than the average additional costs (2.054). For the
next requirement dated 18/12/2023, the average additional costs (2.191) has
exceeded the order cost savings (1.231). Hence the system takes the accumulated
requirements upto 11/12/2023 and creates a planned order of 4000 quantity.

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