Lot usually represents a group of items that are suppose to carry same speficications or any other common characterestics. Lot doesn’t mean you can’t have one quantity in it, system allows you a lot with one item and one quantity. In manufacturing processes the entire output generated from a bacth or shift or from a sampling unit are usually classified into a LOT. Lot number makes it easier to identofy the material and its reference inforation like manufactured date, testing results, expiry information etc.

Oracle Inventory let you allow Lots and child lot. Child lots are nothing but sublots within a lot.

Lot numbers can be generated automatically or manualy assigned based on setup control.

Lot control is decided at Item master or Item organization level for each item. so in your organization you can have some items lot controlled and some are not.