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Lot for Lot

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Posted on by JE-29041340-0

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Hi:

The Item Card Replenishment Policy for /Lot for Lot/ is defined, as follows:

Lot for Lot relies on a demand forecast and aggregates demand across a time period into 1 PO.

Does this mean that you must use the Demand Forecast window to set up such a demand?

Thanks!

John

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Ben Baxter 5,039 Super User 2024 Season 2 on at

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Lot for Lot

You do NOT need to use a Demand Forecast to benefit from Lot-for-Lot Planning. Any source of demand (just sales, sales and production, anything) will be grouped within the Lot Accumulation period. The Accumulation starts at the FIRST source of demand within your Time Horizon of planning, not on the first day of planning. If the accumulation period is blank, it is really equal to 1-Day.

If using a Sales - Demand Forecast, the Sales demand within the time period will not come into effect until it exceeds the Demand Forecast. Which means you can use a Demand Forecast as well, just be aware the Demand Forecast will drop the demand on the first day of the period (first of the month. first of the week, etc.) based on your display when entering the Forecast.

Best Regards,

Ben Baxter

Accent Software Inc
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YUN ZHU 75,848 Super User 2024 Season 2 on at

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Lot for Lot

Hi, just add some information, hope the following helps as well.

https://learn.microsoft.com/en-us/dynamics-nav-app/design-details-lot-for-lot

https://usedynamics.com/business-central/planning/reordering-policy-lot-for-lot/

https://archerpoint.com/lot-lot-versus-reorder-point-microsoft-dynamics-nav/

Thanks.

ZHU
Community member 12 on at

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Lot for Lot

Nothing to do with demand forecasts in the traditional sense as far as I know. All this really means is that if you have multiple areas of demand (production orders, safety stock, whatever) for an item over the period you define, MRP suggests a single PO (or production order) to cover everything coming up in that lot accumulation period.

I have never tested the accumulation period if I also had a traditional demand forecast for the same item. I imagine if you included the demand forecast when you calculate the plan, it would probably aggregate real demand and forecast demand into 1 order. That is what I would expect. But you don't need a traditional demand forecast for lot to lot to work.

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