Thanks for your input Caetano. I have been trying with planning calendar and periodic lot size procedure, but catch was to remove inhouse production time. Due to 5 days in-house production time, it was always pushing the start date back to previous week.
Issue seems to be resolved by just creating appropriate period lot size. Key setting was to select scheduling = 3 with no inhouse time in the material master. So far it is looking good, and adjusting the dates as per the requirements.
Thank you both you and Rupesh for quick response.
Pavan