Issue in SNP optimzer

[Former Member]

Hi,

Our scenario is the product P getting manufactured at locations X and Y. Now same demand present on both the locations and we want to identify where to produce how much using optimizer.

Im currently exploring optimizer and trying to build up the solution using docs available on net. I want to give priority to production cost , then transportation cost and then storage cost.

can u pls give detail stpes for building up same in system. Also currently im stuck in creating PPM. is it prerequsite for running optimizer..where to set production cost at location level and how.

Regards,

Vrushali.

[Former Member · Accepted solution]

HelloVurshali,

First when you say you have same demand in two different location then is this same demand duplicated?

If yes then this is first thing you need to changes because when we talk of mutiple products it will confusion resource requirement

There should be a DC above your manufactuing location and you prioritize supply location using transportation lanes

The other way of doing this is put your demand in one location and through capacity and cost model constrains transfer excess demand to second location through STR

Regarding the other queries I will reply latter

Thankyou

Regards

Arindam

[Former Member]

HelloVurshali,

Please check if SNP Str horizon,forecast horizon, SNP prod horizon, PPDS prod horizon is less than your demand date

Secondly check whether procurement type is F in distribution center

Product assignment to transportation lane

Stock should not be available to net off

Prouct location master maintain high non delivery penalty

Maintain SNP PPM or PDS in manufacturing location

Optimizer Profile:

Tick only production constrain to begin with

Cost mimimization

Choose appropriate solution

Thankyou

Regards

Arindam

[Former Member]

Hi,

As suggested by you i've correct demand and i've put demand for product (P) on distribution centre (D) which is connected to two manufacturing locations ( M1 and M2) producing product P.

Before running optimizer i've made following settings,

1) Transport cost i've kept same for product P from M1 to D and M2 to D

2) I've kept production cost higher at M1 in PPM ; PPM is added to active model.

But when im running optimizer in interactive planning for entire network the cost is coming zero. There is no transportation as well as production cost. No SNP planned order created for any manufacturing location.

Can you pls guide in case im missing any seetings or check points. I've hecked log and demand, transportation lanes, PPM , location product getting read.

Regards,

Vrushali.