This is what happens in the video
The lot-for-lot reordering policy in Business Central creates supply orders based directly on actual demand. When you set a lot accumulation period, the system bundles all demands within that period into a single order. The order size matches the sum of the demands in that period, so it changes from order to order depending on how much demand falls inside the window.
You configure lot-for-lot on the item card in the Planning section. You decide whether to include inventory and you define the lot accumulation period. Setting the period to 40 days means the system groups all demands within a 40-day span into one order.
Lot-for-lot works well for seasonal items because the order sizes follow the demand pattern. When demand gets tighter, the orders grow bigger automatically.
How to set up the lot-for-lot reordering policy on the item card
You define the reordering policy on the item card in the Planning section. When you choose lot-for-lot, you first decide whether to include inventory in the calculation. Then you set a lot accumulation period.
The lot accumulation period controls how far ahead the system looks when it bundles demand. If you change the period to 40 days, the system collects all demands that fall within a 40-day span and combines them into a single order.
How lot-for-lot calculates order sizes from demand
With lot-for-lot you have a series of demands over time. These can be many demands of different sizes, for example several sales orders. Each demand lowers your expected inventory level. You may also have inventory at the present date and a safety stock level.
When a demand pushes the inventory below the safety stock level, the system triggers a new order. The basic principle of lot-for-lot is that it brings inventory up to the safety stock level and does nothing more.
When a demand triggers an order, the system looks ahead across the lot accumulation period. With a 40-day period, it accumulates all demands within those 40 days into one order. If you have four orders within the period and their sum is 20, the system creates a single order with an order size of 20. For a produced item, this becomes one production order with the relevant lead time.
The next time a demand triggers an order, the system looks ahead another 40 days and bundles the demands in that window. If those demands sum to 26, the order size is 26. For a production item, the lead time is longer for the larger order.
The frozen zone and how it affects planning
The frozen zone is a period before the starting date. If you use the frozen zone, the system does not change anything that falls before the starting date. This protects your near-term schedule from being adjusted by the planning calculation.
When lot-for-lot is a good fit
Lot-for-lot suits seasonal items well. Because the order sizes depend on the demand inside each lot accumulation period, the orders grow bigger as demand gets tighter. The supply follows the demand pattern directly instead of using a fixed quantity.
Q&A
What does the lot accumulation period do in lot-for-lot planning?
The lot accumulation period defines how far ahead the system looks when bundling demand into a single order. With a 40-day period, all demands within those 40 days are combined into one order.
How is the order size determined in lot-for-lot?
The order size equals the sum of all demands that fall within the lot accumulation period. If four demands within the period total 20, the system creates one order with a size of 20.
Where do you configure the lot-for-lot reordering policy?
You configure it on the item card in the Planning section. There you choose the reordering policy, decide whether to include inventory, and set the lot accumulation period.
What is the frozen zone in lot-for-lot planning?
The frozen zone is a period before the starting date. When you use it, the system does not change any orders that fall before the starting date.
When should you use lot-for-lot?
Lot-for-lot fits seasonal items because order sizes follow the demand pattern. The orders grow bigger as demand becomes tighter within each lot accumulation period.