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MRP (or MPS) determines how much stock is needed to satisfy demand in the net requirements calculation. This shortage quantity must now be covered by one or more receipts. The system calculates the receipt quantity in the lot size calculation. You specify how the system is to determine the lot size by selecting one of the lot-sizing procedures in the MRP view of the items material master record. You also may specify additional restrictions on the lot size in the MRP view. The minimum lot size, for example, is applied after the lot size has been calculated and insures the order quantity is at least that amount. The maximum lot size ensures that the order quantity does not exceed that amount. The rounding value modifies the order quantity so it is in multiples of the amount. In static lot-sizing procedures, the system does not take future shortages into account; that is, if it determines shortages, the system creates an order proposal for the quantity of the static lot size. If you have specified that the exact lot size (lot-for-lot order quantity) is to be used, the system uses the exact shortage quantity as the order quantity in the case of a material shortfall. If there are several goods issues leading to a material shortfall in one day, the system groups the shortage quantity from this day in one order proposal, rather than creating an order proposal for each shortage. If you have specified that the fixed order quantity is to be used, the system uses the fixed lot size quantity as the order quantity in the case of a material shortfall. If this order quantity is not sufficient to cover the shortage, the system generates several order proposals for the same date until the shortage has been covered. If you have specified that the order quantity “replenishment up to maximum stock level” is to be used, the system creates an order proposal for the quantity that is required to reach the maximum stock level defined in the