Interpreting Total Costs and Violation

[Former Member]

Hi!

After having taken an SNP Optimizer run, how do we interpret the term Total Costs and Violations in the Solution Quality Tab of the SNP Optimizer Log? Also on what basis are the VIOLATION Values calculated?

[former_member187488 · Accepted solution]

Hello,

Basically, total costs are the sum of costs from non-delivery, late delivery, stock, and such things.

For optimizer run (cost-based), we persue a plan with lower cost.

But these costs are not the real cost of money, they're only used for simulation purpose. For example, you define non-delivery cost in SNP2 tab of material master. If you want the material to be always delivered (shortage alwasy to be covered), no matter how late it is, you should set a very big non-delivery cost for it ... Maybe someone would like to calculate the costs by themselves to check optimizer result, but I don't think it's that easy ... explanation function may help somehow.

Violation is the diviation between the real calculated values and your constrains set in optimizer profile.

Please check http://help.sap.com/saphelp_scm70/helpdata/EN/1c/186b398c15ef59e10000000a114084/frameset.htm -> Optimization-Based Planning for further information.

Best Regards,

Ada

[former_member209769]

Hi Harshu,

Have you already gone through the information available on SAP Help?

http://help.sap.com/saphelp_scm50/helpdata/en/1c/4d7a375f0dbc7fe10000009b38f8cf/frameset.htm

(I am giving link for SCM5.0, but you can easily get the link for SCM7.0 as well)

If you have not yet had a look, could you first go through it and then ask more specific question on something that is not clear to you?

Thanks - Pawan