Foreced Production without demand using SNP optimizer

[former_member955266]

Hi Gurus,

I am trying to make a scenario where in my raw material shelf life is very short.

So if there is no dependent demand for this rawmaterial flown from demand of finished product , still i want to produce finished product which as long shelf life.

These are the costs i maintained .

Very Very High storage cost for Raw material.

Low production cost in PPM which uses the above raw material and produced FG.

Very very low storage cost for the FG.

Now i have the stock of rawmaterial and no demand for FG , still optimizer has to produce the finished product , so that raw material storage cost will not incured by producing the FG to get the optimized solution .But still in the overall cost after running the optimizer , storage cost incured and FG was not produced.

Please let me know am i missing something or optimizer cannot give these kind of solutions.

Thanks ,

Ballack

[Former Member · Accepted solution]

Hi Ballack,

You should be able to plan this way with the optimiser...

Just some ideas:

+ Do you have safety stock? do you use "stepwise"?

+ Do you have storage constraint?

+ Do you have enough production capacity?

Thanks and Regards

Julien