term least unit cost what is
Meaning of least unit cost procedure. What is it: the sum of setup plus storage costs (optimum lot.

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Definition least unit cost procedure

LEAST UNIT COST PROCEDURE title: least unit cost procedure (PP-MRP) (SAP Library - Glossary)
LEAST UNIT COST PROCEDURE category: Material Requirements Planning (PP-MRP)
LEAST UNIT COST PROCEDURE explained:

A procedure for lot-size calculation with optimization of the sum of setup plus storage costs (optimum lot-sizing procedure).

Starting from the shortage date, successive requirements are grouped to form lots until total costs for each unit reach a minimum level. The total costs are equal to the sum of the lot size independent costs plus the total storage costs.

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