diff --git a/org.adempiere.base.process/src/org/compiere/process/ReplenishReportProduction.java b/org.adempiere.base.process/src/org/compiere/process/ReplenishReportProduction.java
index 96ac1b80ac..6b1924a889 100644
--- a/org.adempiere.base.process/src/org/compiere/process/ReplenishReportProduction.java
+++ b/org.adempiere.base.process/src/org/compiere/process/ReplenishReportProduction.java
@@ -22,6 +22,7 @@ import java.sql.PreparedStatement;
 import java.sql.ResultSet;
 import java.sql.Timestamp;
 import java.util.ArrayList;
+import java.util.List;
 import java.util.logging.Level;
 
 import org.compiere.model.MBPartner;
@@ -35,6 +36,7 @@ import org.compiere.model.MOrg;
 import org.compiere.model.MProduct;
 import org.compiere.model.MProduction;
 import org.compiere.model.MProductionLine;
+import org.compiere.model.MReplenish;
 import org.compiere.model.MRequisition;
 import org.compiere.model.MRequisitionLine;
 import org.compiere.model.MStorage;
@@ -758,7 +760,7 @@ public class ReplenishReportProduction extends SvrProcess
 		}
 	}	//	create Distribution Order
 	/**
-	 * 	Create Requisition
+	 * 	Create Production
 	 */
 	private void createProduction()
 	{
@@ -775,24 +777,47 @@ public class ReplenishReportProduction extends SvrProcess
 			X_T_Replenish replenish = replenishs[i];
 			if (wh == null || wh.getM_Warehouse_ID() != replenish.getM_Warehouse_ID())
 				wh = MWarehouse.get(getCtx(), replenish.getM_Warehouse_ID());
-			production = new MProduction (getCtx(), 0, get_TrxName());
-			production.setDescription(Msg.getMsg(getCtx(), "Replenishment"));
-			//	Set Org/WH
-			production.setAD_Org_ID(wh.getAD_Org_ID());
-			production.setM_Locator_ID(wh.getDefaultLocator().get_ID());
-			production.setM_Product_ID(replenish.getM_Product_ID());
-			production.setProductionQty(replenish.getQtyToOrder());
-			production.setMovementDate(Env.getContextAsDate(getCtx(), "#Date"));
-			production.saveEx();
-			
-			production.createLines(false);
 			
+			BigDecimal batchQty = null;
 
-			production.setIsCreated("Y");
-			production.save(get_TrxName());
-			log.fine(production.toString());
-			noProds++;
-			info += " - " + production.getDocumentNo();
+			for (MReplenish rep : MReplenish.getForProduct(getCtx(), replenish.getM_Product_ID(), get_TrxName()))
+			{
+				if ( rep.getM_Warehouse_ID() == replenish.getM_Warehouse_ID())
+					batchQty = rep.getQtyBatchSize();
+			}
+			
+			BigDecimal qtyToProduce = replenish.getQtyToOrder();
+			
+			while ( qtyToProduce.compareTo(Env.ZERO) > 0)
+			{
+				BigDecimal qty = qtyToProduce;
+				if ( batchQty != null && batchQty.compareTo(Env.ZERO) > 0 && qtyToProduce.compareTo(batchQty) > 0)
+				{
+					qty = batchQty;
+					qtyToProduce = qtyToProduce.subtract(batchQty);
+				}
+				else
+				{
+					qtyToProduce = Env.ZERO;
+				}
+				production = new MProduction (getCtx(), 0, get_TrxName());
+				production.setDescription(Msg.getMsg(getCtx(), "Replenishment"));
+				//	Set Org/WH
+				production.setAD_Org_ID(wh.getAD_Org_ID());
+				production.setM_Locator_ID(wh.getDefaultLocator().get_ID());
+				production.setM_Product_ID(replenish.getM_Product_ID());
+				production.setProductionQty(qty);
+				production.setMovementDate(Env.getContextAsDate(getCtx(), "#Date"));
+				production.saveEx();
+
+				production.createLines(false);
+
+				production.setIsCreated("Y");
+				production.save(get_TrxName());
+				log.fine(production.toString());
+				noProds++;
+				info += " - " + production.getDocumentNo();
+			}
 
 		}
 		m_info = "#" + noProds + info;
diff --git a/org.adempiere.base/src/org/compiere/model/MProduction.java b/org.adempiere.base/src/org/compiere/model/MProduction.java
index feca130b33..6d4dd107ed 100644
--- a/org.adempiere.base/src/org/compiere/model/MProduction.java
+++ b/org.adempiere.base/src/org/compiere/model/MProduction.java
@@ -27,6 +27,8 @@ public class MProduction extends X_M_Production {
 	/** Log								*/
 	private static CLogger		m_log = CLogger.getCLogger (MProduction.class);
 	private static final long serialVersionUID = 1L;
+	private int lineno;
+	private int count;
 
 	public MProduction(Properties ctx, int M_Production_ID, String trxName) {
 		super(ctx, M_Production_ID, trxName);
@@ -90,17 +92,13 @@ public class MProduction extends X_M_Production {
 
 	public int createLines(boolean mustBeStocked) {
 		
-		int defaultLocator = 0;
-		
-		int lineno = 100;
-		int count = 0;
+		lineno = 100;
+
+		count = 0;
+
 		// product to be produced
 		MProduct finishedProduct = new MProduct(getCtx(), getM_Product_ID(), get_TrxName());
-		MLocator finishedLocator = MLocator.get(getCtx(), getM_Locator_ID());
 		
-		int M_Warehouse_ID = finishedLocator.getM_Warehouse_ID();
-		
-		int asi = 0;
 
 		MProductionLine line = new MProductionLine( this );
 		line.setLine( lineno );
@@ -111,10 +109,25 @@ public class MProduction extends X_M_Production {
 		
 		line.save();
 		count++;
+		
+		createLines(mustBeStocked, finishedProduct, getProductionQty());
+		
+		return count;
+	}
+
+	private int createLines(boolean mustBeStocked, MProduct finishedProduct, BigDecimal requiredQty) {
+		
+		int defaultLocator = 0;
+		
+		MLocator finishedLocator = MLocator.get(getCtx(), getM_Locator_ID());
+		
+		int M_Warehouse_ID = finishedLocator.getM_Warehouse_ID();
+		
+		int asi = 0;
 
 		// products used in production
 		String sql = "SELECT M_ProductBom_ID, BOMQty" + " FROM M_Product_BOM"
-				+ " WHERE M_Product_ID=" + getM_Product_ID() + " ORDER BY Line";
+				+ " WHERE M_Product_ID=" + finishedProduct.getM_Product_ID() + " ORDER BY Line";
 
 		PreparedStatement pstmt = null;
 		ResultSet rs = null;
@@ -128,149 +141,158 @@ public class MProduction extends X_M_Production {
 				lineno = lineno + 10;
 				int BOMProduct_ID = rs.getInt(1);
 				BigDecimal BOMQty = rs.getBigDecimal(2);
-				BigDecimal BOMMovementQty = BOMQty.multiply(getProductionQty());
+				BigDecimal BOMMovementQty = BOMQty.multiply(requiredQty);
 				
 				MProduct bomproduct = new MProduct(Env.getCtx(), BOMProduct_ID, get_TrxName());
 				
-				defaultLocator = bomproduct.getM_Locator_ID();
-				if ( defaultLocator == 0 )
-					defaultLocator = getM_Locator_ID();
-				
-				if (!bomproduct.isStocked())
-				{					
-					MProductionLine BOMLine = null;
-					BOMLine = new MProductionLine( this );
-					BOMLine.setLine( lineno );
-					BOMLine.setM_Product_ID( BOMProduct_ID );
-					BOMLine.setM_Locator_ID( defaultLocator );  
-					BOMLine.setQtyUsed(BOMMovementQty );
-					BOMLine.setPlannedQty( BOMMovementQty );
-					BOMLine.save(get_TrxName());
 
-					lineno = lineno + 10;
-					count++;					
-				}
-				else if (BOMMovementQty.signum() == 0) 
+				if ( bomproduct.isPhantom() )
 				{
-					MProductionLine BOMLine = null;
-					BOMLine = new MProductionLine( this );
-					BOMLine.setLine( lineno );
-					BOMLine.setM_Product_ID( BOMProduct_ID );
-					BOMLine.setM_Locator_ID( defaultLocator );  
-					BOMLine.setQtyUsed( BOMMovementQty );
-					BOMLine.setPlannedQty( BOMMovementQty );
-					BOMLine.save(get_TrxName());
-
-					lineno = lineno + 10;
-					count++;
+					createLines(mustBeStocked, bomproduct, BOMMovementQty);
 				}
 				else
 				{
-					
-					// BOM stock info
-					MStorage[] storages = null;
-					MProduct usedProduct = MProduct.get(getCtx(), BOMProduct_ID);
-					defaultLocator = usedProduct.getM_Locator_ID();
+
+					defaultLocator = bomproduct.getM_Locator_ID();
 					if ( defaultLocator == 0 )
 						defaultLocator = getM_Locator_ID();
-					if (usedProduct == null || usedProduct.get_ID() == 0)
-						return 0;
-					
-					MClient client = MClient.get(getCtx());
-					MProductCategory pc = MProductCategory.get(getCtx(),
-								usedProduct.getM_Product_Category_ID());
-					String MMPolicy = pc.getMMPolicy();
-					if (MMPolicy == null || MMPolicy.length() == 0) 
-					{ 
-						MMPolicy = client.getMMPolicy();
-					}
-					
-					storages = MStorage.getWarehouse(getCtx(), M_Warehouse_ID, BOMProduct_ID, 0, null,
-							MProductCategory.MMPOLICY_FiFo.equals(MMPolicy), true, 0, get_TrxName());
 
-					MProductionLine BOMLine = null;
-					int prevLoc = -1;
-					int previousAttribSet = -1;
-					// Create lines from storage until qty is reached
-					for (int sl = 0; sl < storages.length; sl++) {
-	
-						BigDecimal lineQty = storages[sl].getQtyOnHand();
-						if (lineQty.signum() != 0) {
-							if (lineQty.compareTo(BOMMovementQty) > 0)
-								lineQty = BOMMovementQty;
-	
-							
-							int loc = storages[sl].getM_Locator_ID();
-							int slASI = storages[sl].getM_AttributeSetInstance_ID();
-							int locAttribSet = new MAttributeSetInstance(getCtx(), asi,
-									get_TrxName()).getM_AttributeSet_ID();
-	
-							// roll up costing attributes if in the same locator
-							if (locAttribSet == 0 && previousAttribSet == 0
-									&& prevLoc == loc) {
-								BOMLine.setQtyUsed(BOMLine.getQtyUsed()
-										.add(lineQty));
-								BOMLine.setPlannedQty(BOMLine.getQtyUsed());
-								BOMLine.save(get_TrxName());
-								
-							}
-							// otherwise create new line
-							else {
-								BOMLine = new MProductionLine( this );
-								BOMLine.setLine( lineno );
-								BOMLine.setM_Product_ID( BOMProduct_ID );
-								BOMLine.setM_Locator_ID( loc );
-								BOMLine.setQtyUsed( lineQty);
-								BOMLine.setPlannedQty( lineQty);
-								if ( slASI != 0 && locAttribSet != 0 )  // ie non costing attribute
-									BOMLine.setM_AttributeSetInstance_ID(slASI);
-								BOMLine.save(get_TrxName());
-	
-								lineno = lineno + 10;
-								count++;
-							}
-							prevLoc = loc;
-							previousAttribSet = locAttribSet;
-							// enough ?
-							BOMMovementQty = BOMMovementQty.subtract(lineQty);
-							if (BOMMovementQty.signum() == 0)
-								break;
+					if (!bomproduct.isStocked())
+					{					
+						MProductionLine BOMLine = null;
+						BOMLine = new MProductionLine( this );
+						BOMLine.setLine( lineno );
+						BOMLine.setM_Product_ID( BOMProduct_ID );
+						BOMLine.setM_Locator_ID( defaultLocator );  
+						BOMLine.setQtyUsed(BOMMovementQty );
+						BOMLine.setPlannedQty( BOMMovementQty );
+						BOMLine.save(get_TrxName());
+
+						lineno = lineno + 10;
+						count++;					
+					}
+					else if (BOMMovementQty.signum() == 0) 
+					{
+						MProductionLine BOMLine = null;
+						BOMLine = new MProductionLine( this );
+						BOMLine.setLine( lineno );
+						BOMLine.setM_Product_ID( BOMProduct_ID );
+						BOMLine.setM_Locator_ID( defaultLocator );  
+						BOMLine.setQtyUsed( BOMMovementQty );
+						BOMLine.setPlannedQty( BOMMovementQty );
+						BOMLine.save(get_TrxName());
+
+						lineno = lineno + 10;
+						count++;
+					}
+					else
+					{
+
+						// BOM stock info
+						MStorage[] storages = null;
+						MProduct usedProduct = MProduct.get(getCtx(), BOMProduct_ID);
+						defaultLocator = usedProduct.getM_Locator_ID();
+						if ( defaultLocator == 0 )
+							defaultLocator = getM_Locator_ID();
+						if (usedProduct == null || usedProduct.get_ID() == 0)
+							return 0;
+
+						MClient client = MClient.get(getCtx());
+						MProductCategory pc = MProductCategory.get(getCtx(),
+								usedProduct.getM_Product_Category_ID());
+						String MMPolicy = pc.getMMPolicy();
+						if (MMPolicy == null || MMPolicy.length() == 0) 
+						{ 
+							MMPolicy = client.getMMPolicy();
 						}
-					} // for available storages
-	
-					// fallback
-					if (BOMMovementQty.signum() != 0 ) {
-						if (!mustBeStocked)
-						{
-							
-							// roll up costing attributes if in the same locator
-							if ( previousAttribSet == 0
-									&& prevLoc == defaultLocator) {
-								BOMLine.setQtyUsed(BOMLine.getQtyUsed()
-										.add(BOMMovementQty));
-								BOMLine.setPlannedQty(BOMLine.getQtyUsed());
-								BOMLine.save(get_TrxName());
-								
+
+						storages = MStorage.getWarehouse(getCtx(), M_Warehouse_ID, BOMProduct_ID, 0, null,
+								MProductCategory.MMPOLICY_FiFo.equals(MMPolicy), true, 0, get_TrxName());
+
+						MProductionLine BOMLine = null;
+						int prevLoc = -1;
+						int previousAttribSet = -1;
+						// Create lines from storage until qty is reached
+						for (int sl = 0; sl < storages.length; sl++) {
+
+							BigDecimal lineQty = storages[sl].getQtyOnHand();
+							if (lineQty.signum() != 0) {
+								if (lineQty.compareTo(BOMMovementQty) > 0)
+									lineQty = BOMMovementQty;
+
+
+								int loc = storages[sl].getM_Locator_ID();
+								int slASI = storages[sl].getM_AttributeSetInstance_ID();
+								int locAttribSet = new MAttributeSetInstance(getCtx(), asi,
+										get_TrxName()).getM_AttributeSet_ID();
+
+								// roll up costing attributes if in the same locator
+								if (locAttribSet == 0 && previousAttribSet == 0
+										&& prevLoc == loc) {
+									BOMLine.setQtyUsed(BOMLine.getQtyUsed()
+											.add(lineQty));
+									BOMLine.setPlannedQty(BOMLine.getQtyUsed());
+									BOMLine.save(get_TrxName());
+
+								}
+								// otherwise create new line
+								else {
+									BOMLine = new MProductionLine( this );
+									BOMLine.setLine( lineno );
+									BOMLine.setM_Product_ID( BOMProduct_ID );
+									BOMLine.setM_Locator_ID( loc );
+									BOMLine.setQtyUsed( lineQty);
+									BOMLine.setPlannedQty( lineQty);
+									if ( slASI != 0 && locAttribSet != 0 )  // ie non costing attribute
+										BOMLine.setM_AttributeSetInstance_ID(slASI);
+									BOMLine.save(get_TrxName());
+
+									lineno = lineno + 10;
+									count++;
+								}
+								prevLoc = loc;
+								previousAttribSet = locAttribSet;
+								// enough ?
+								BOMMovementQty = BOMMovementQty.subtract(lineQty);
+								if (BOMMovementQty.signum() == 0)
+									break;
 							}
-							// otherwise create new line
-							else {
-								
-								BOMLine = new MProductionLine( this );
-								BOMLine.setLine( lineno );
-								BOMLine.setM_Product_ID( BOMProduct_ID );
-								BOMLine.setM_Locator_ID( defaultLocator );  
-								BOMLine.setQtyUsed( BOMMovementQty);
-								BOMLine.setPlannedQty( BOMMovementQty);
-								BOMLine.save(get_TrxName());
-			
-								lineno = lineno + 10;
-								count++;
+						} // for available storages
+
+						// fallback
+						if (BOMMovementQty.signum() != 0 ) {
+							if (!mustBeStocked)
+							{
+
+								// roll up costing attributes if in the same locator
+								if ( previousAttribSet == 0
+										&& prevLoc == defaultLocator) {
+									BOMLine.setQtyUsed(BOMLine.getQtyUsed()
+											.add(BOMMovementQty));
+									BOMLine.setPlannedQty(BOMLine.getQtyUsed());
+									BOMLine.save(get_TrxName());
+
+								}
+								// otherwise create new line
+								else {
+
+									BOMLine = new MProductionLine( this );
+									BOMLine.setLine( lineno );
+									BOMLine.setM_Product_ID( BOMProduct_ID );
+									BOMLine.setM_Locator_ID( defaultLocator );  
+									BOMLine.setQtyUsed( BOMMovementQty);
+									BOMLine.setPlannedQty( BOMMovementQty);
+									BOMLine.save(get_TrxName());
+
+									lineno = lineno + 10;
+									count++;
+								}
+
+							}
+							else
+							{
+								throw new AdempiereUserError("Not enough stock of " + BOMProduct_ID);
 							}
-							
-						}
-						else
-						{
-							throw new AdempiereUserError("Not enough stock of " + BOMProduct_ID);
 						}
 					}
 				}