Material procurement quantity

What is a material procurement quantity?

The material procurement quantity is planned as part of material procurement with the aim of determining the economic lot size. Influencing factors of the material procurement quantity are:

the Procurement costswhich include all order quantity-dependent costs that arise from the external procurement of material.

Order costs

the Order coststhat arise within the company for material procurement. You also will be Order processing costs named and viewed as a fixed cost when calculating the optimal procurement quantity.

Storage costs

the Storage coststhat are caused overall by the material storage, e.g. B. Costs for the storage room, personnel, heating, lighting, depreciation, maintenance and interest for the capital tied up in the warehouse.

Shortage costs

the Shortage coststhat arise when the procured material does not meet the requirements of the production area, whereby the service process is partially or completely interrupted. They arise from possible price differences, lost profits or contractual penalties, e.g. B. due to non-delivery.

Lot size units

the Lot size units, e.g. B. Transport, packaging and storage units or customary order units. The lot size is z. B. a multiple of the capacity of the cheapest means of transport, z. B. on a truck or ship.

Financial volume

That Financial volume, because the economically appropriate procurement quantity can only be procured if the material is also affordable. If the company has the necessary financial leeway, the procurement volume that is considered appropriate would be feasible in principle.

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