How to define Lot accumulation periods when planning with reorder policy Lot for Lot in Business Central?
If you’re planning with reorder policy lot for lot, you need at least to define a lot accumulation period.
This is what happens in the video
When you plan an item using the reorder policy Lot-for-Lot in Microsoft Dynamics 365 Business Central, you must set up a lot accumulation period. The lot accumulation period defines how often a new order is created. It bundles all demand within that period into a single order. To find the right number, ask yourself how often you want to start a production order or place a purchase order for the item, and use that interval as the lot accumulation period.
What the lot accumulation period does in Lot-for-Lot planning
If you plan with the reorder policy Lot-for-Lot, the one field you have to define is the lot accumulation period. There are other fields you can set up as well, but the lot accumulation period is the minimum requirement to make the planning work.
The lot accumulation period is the period in which the system bundles demands together and turns them into one order. If you set a lot accumulation period of 14 days, the system initiates a new order every second week for that item and gathers all the demand in that period into a single order.
How to choose the right lot accumulation period
You find the right number by asking yourself a simple question: how often do you want to start an order for this item? For a manufactured item, that means how often you want to start a production order. For a purchased item, it means how often you want to buy it on a purchase order.
A good way to think about it is like buying groceries for your kitchen at home. Consider how long a period you want to cover when you buy the item. That length of time is the answer to your lot accumulation period.
Other fields in Lot-for-Lot planning
The lot accumulation period is the field you have to set, but it is not the only one available. The other fields used in Lot-for-Lot planning are covered in more detail in separate guides on how to set up Lot-for-Lot planning.
Q&A
What field must you set up when using the reorder policy Lot-for-Lot?
You must set up the lot accumulation period. Other fields can be configured as well, but the lot accumulation period is the minimum requirement for Lot-for-Lot planning to work.
What does the lot accumulation period do?
It defines the period in which the system bundles demands together into one order. For example, a lot accumulation period of 14 days creates a new order every second week and gathers all demand from that period into a single order.
How do you decide on the right lot accumulation period?
Ask yourself how often you want to start an order for the item, either a production order for a manufactured item or a purchase order for a purchased item. The interval at which you want to order the item is the value you set as the lot accumulation period.