Optimiser results

[former_member266806]

Dear Experts,

Discrete Optimiser has given planned orders at a factory location without any demand in the current as well as future buckets.

In the SNP PPM, minimum lot size maintained is 24000.The planned order generated is also 24000.

In the Location Product Master

1.No costs are maintained

2.Safety Stock days maintained is 1, Safety Stock method is SZ

3.Lot sizing Procedure is Lot-for-Lot, and minimum lot size maintained is 6000 in Lot Size tab page

4.Penalty costs are not maintained in SNP1tab page

5. No SNP Production horizon is maintained in SNP2 tab page.

Optimiser has considered the higher of the minimum lot sizes in Product maSter and PPM , and opted for the higher value.

But , why it is trying to produce at all, when there si no demand?

Please specify under what conditions, optimiser can give such results.

Regards,

Samir

[Former Member]

Hi Samir,

U can re-run the optimiser by maintaining a nominal storage cost and production cost.

Hope it resolves ur query

Regards

Sunshine

[former_member266806]

Hi Bipin/Sunshine,

Your answers are helpful as the optimizer did give expected results on maintenace of costs.

REgards,

Samir Baruah

[Former Member]

Hi Samir,

I had experienced this problem too. I think you have rightly identified the cause.

Please maintain some nominal cost for materials (especially storage cost) and re-run your opptimizer.

Regards,

Bipin