SNP optimizer NOT picking up alternate PPM

[Former Member]

We are testing a scenario where one finished goods ( FG) has 2 possible BOMs. Main BOM with PPM 1 is prefered on the basis of low cost of production.

Now we are testing a case where Raw material of main BOM is not sufficient to fulfill the FG demand .

Here expected result is that optimizer consumes all stock of raw material of main BOM and then uses stock of raw material of Alternate BOM. ( we have ensured that cost of non delivery and delay are very high as compared to cost of production using alternate BOM)

But optimizer is not considering alternate BOM. it uses only main BOM and keeps the pending raw material quantity of main BOM as shortage.

Does optimizer considers availability of raw material stocks to choose different BOMs.(PPM)?

Please suggest how do we achieve the expected result.

[Former Member · Accepted solution]

Hi,

Yes the SNP optimiser will consider the availabilty of the component if you have selected it in your model.

Your scenario should work.

For trouble shouting:

1. Try to create an order manually with this PPM... is it working?

2. If you do create this order, do you create shortages somewhere (check all components)

3. Check the optimiser log; table ET_PROMAT. Is your PPM visible?

4. Optimiser log: ET_LOCMAT: are all locaiton product here?

5. IT_LOCMAT/IT_NOTDELI: can you see your shortage / stock below safety?

6. Run the explanation tool... does it suggest you should use the extra PPM? (in which case you should check the cost)

I hope it will help you!

Regards

Julien

[Former Member · Accepted solution]

HI Julien,

Thanks for your reply..

We had even tried that reducing the cost in the alternative PPM to check whether alternative PPM is working or not..yes..optimizer has selected that alternate PPM..But there also same thing happened.. i mean when the raw material shortage is there in the alternate BOM(PPM), It is not shifhting to main PPM for the remaining shortage.

Optimizer is selecting only one PPM..i checked in the log

We have not maintained any safety stock...

Your reply is highly anticipated...

Regards,

Umamahesh

[Former Member · Accepted solution]

Hi Umamahesh,

When you say "selecting only one PPM" are you talking about the input log or output log...

Please answer the following:

1. Can you see both PPM in ET_PROMAT?

2. What can you see in IT_NOTDELI for your product? (which bucket / which location)

3. What can you see in IT_LOCMAT?

4. Please include also the table IT_RESOURC for the relevant resource.

5. Did you try the explanation tool?

Please include details for analysis.

Do not forget: if you haven't amintain a delay, then any demand not cover is LOST for the optimiser. So, let's assume you could not cover first day demand, then even if all other demand are cover, your stock in interactive will look negative... Hence you need to analysie using IT_NOTDELI and IT_LOCMAT

Regards

Julien

[Former Member]

HI Uma

the Alternate PPM might not be getting chosen because the Lower cost PPM is able to satisfy the whole demand from its production capacity available. If you wanna map it throught the stock available for the RM then try the following options

First Try increasing the demand to a higher limit than the production capacity

Put sotrage cost and max delay as some value

You will see that the loading will happen on alternate PPM too

Then Tray the following to map ur scenario

1.Put some procurement cost for the Raw material and include it in optimization (RM also with FG).

OR

2. In the Optimizer profile in intergration Tab put stock of non selected PPM/PDS input proiduct as pseudo hard constraint.

-Regards

Virender