Cost profile/function in SNP PPM

[Former Member]

Dear colleague,

i have created a cost function for a material with values

0-10 -- variable cost as 10

10-100 -- variable cost as 9.

and i have attached this cost function to the PPM under cost profile but while running the SNP optimizer the cost is never considered.

Not sure what could be the issue in this. Request if any body can help me on this topic.

Thanks

Sandeep

[Former Member]

Hi Sandeep,

Among the two optimzation options of Linear Optimzation and Discrere Optimzation, If you choose Discrete optimization , you can specify that you want the optimizer to consider the piecewise linear cost function (defined in the production process model (PPM)), for the PPM.

u2022 You need to activate Discrete Optimization in the optimizer profile header data.

u2022 You need to define the piecewise linear cost function (cost profile) in the PPM.

Regards

Datta

[Former Member]

Hi Datta,

i am planning many materials in my SNP optimizer but want to use cost function only for 1 product. so in case we do the discrete planning wont it applicable to all the products.

Thanks

Sandeep

[Former Member]

Hi,

Assign the cost function in the Product Master in the Procurement tab page and then take opt run.

This cost function is is used by optimizer to calculate the cost for procuring, producing , transporting varying quantities of products

defined in the intervals.

Thanks,

nandha

[Former Member]

Hi Nand,

The cost function which is mentioned in the procurement tab of material is only relevant for the procurement and not production but i am willing to use the cost function for the production of the material where we maintain in PPM.

Thanks

Sandeep