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Product Priority during SNP Optimizer

Former Member
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Hi Experts,

I have Forecast of 2 Products (SKU A and B - 1000 each for a month)

Stock of A is - 500 (Stock cover is 15 days)

Stock of B is - 67 (Stock cover is 2 days)

Both products are produced on same line.

No.Delivery penalty, Delay Penaly and Max. delay are same for both products.

Zero safety stock penalt and Zero safety stock requirement.

When I run SNP Optimizer in weekly Bucket, system suggest production of A first then B.

I would like SNP Optimizer to suggest product on B first as stock cover is lesser than A.

How can achive it?

Do I need to do anything in COPT10?

Thanks in advance,

Vipul Shah

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Dear Vipul

What i had suggested will prioritise based on the projected stock available only, its just a matter how you

want to interpret it. If u wanna do it based on the demand you can use a lower non delivery penalty for one

product and higher for higher other product. IN order to avoid the dropping of demand of a product with higher non delivery penalty the optimizer will give preference to manufacture it. But its a static situtaion and might not be favourable on all conditions. You might have to change the cost before every run based on the planning conditions.

If you are using APO 5.0 or above you can look at the documentation on Automatic cost generation Optimizer

which might be usefull for you.

-Regards

Virender

Former Member
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We raised this question to SAP.

SAP says it can't be done. System can suggest production of any SKU as all the costs are same.

APO doesn't suggest productin based on Day of Cover for Forecast.

Once Forecast is fulfilled, Safety stock leveling can be done using SNP optimizer profile setting.

Answers (1)

Answers (1)

Former Member
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Dear Vipul

Product A might be getting produced because of lower cost of production even when its stock is higher.

The best way would be to put a safety stock penalty for both which is relatively higher than the delta difference between

the cost of production of A to B. In that case you ll be able to achieve the desired results.

The only way to prioritise in terms of safety stock available in days for a product is through Safety stock penalty.

Touching other costs might give you a static result for that particular scenario only, in a dyanamic environment the results

might again be unfavourable.

Lets say the SS days norm kept is 15 days for both the products it will first try to build the stock of B because it has a lower

stock position as the optimiser would not want to incur the safety stock voilation cost for B.

Try it out it will solve ur problem

-Regards

Virender S Thakur

Former Member
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Hi Virender,

I don' t want to prioritize against Safety stock requirement.

I would like to prioritize based on Forecast and Stock availability using SNP Optimizer.

Vipul