Optimiser giving strange results

[Former Member]

Hi,

We are facing 2 conflicting issues.: -

a. Optimiser sugegst substantially high receipt elements even though there is no or very little demand. (we did play around with storage cost; but no luck)

b. Optimiser sugegst no supply elements even whene there is demand. Resource capacities and raw materials are avaialble; but still, optimiser doesn't give any supply plan though there is foreacst. Trace file shows that all the iterations were completely optimal.

Can you pls throw some light on these ambiguities?

Thanks & regards,

Abhishek.

[Former Member]

Hi Abhishek,

Please for both these issues first run the Heuristics and observe the results, before really starting to shot in the dark.

If the results from Heuristics are fine for both the situation, then we need to look at the Non Delivery penalities.

Storage cost will not play much important role since if the Non Delivery penalities are very high the storage costs ar offset.

Also the next important thing would be that the production costs are realistic, for the optimizer to give you desired results.

Do you have Safety stock penalities and Target days of Supplies also activated?

Please for both these cases run Heuristics and check the results.

Thanks,

Harsh

[Former Member]

Hi Abhishek,

As suggested earlier pls check, you production cost, as well as penalty costs. What is there as 'cost for transportation' in the logs? Please check your transportation cost (in T-lane). I belive you have maintained those costs in such a way that optimizer found its better not to supply goods in demand location. Please let us know your findings..

What is there in the logs for 'cost for not delivering goods'?

Thanks,

Satyajit

[Former Member]

Hi,

a. Optimiser sugegst substantially high receipt elements even though there is no or very little demand. (we did play around with storage cost; but no luck)

Try with PPM / PDS cost ( Check your storage cost and non delivery penalties) my suggestion put 1 in PPM / PDS.

b. Optimiser sugegst no supply elements even whene there is demand. Resource capacities and raw materials are avaialble; but still, optimiser doesn't give any supply plan though there is foreacst. Trace file shows that all the iterations were completely optimal.

i hope there is no non delivery penalty in product masters.

Please check non delivery cost , maximum deley and delay penalty in SNP1 view on Product master..

revert if required.