Optimizer Issues

[Former Member]

Hi Experts,

We are working for trading industry where we procure and sell the products. We haven't setup PPM/PDS. We are using Optimizer extensively. We have been facing the following two issues. If you encouter the same, please let us know.

-> We have saftey stock maintained in location master (Destination) with method SB. When we run optimizer system doesn't considering the safety stock and only considering the demand. Please suggest How do we make system to consider safety stock also as demand.

-> After Optimization, receipts are generated at Distribution receipts at Source even product is marked for "X" in procurement tab page at source level. Why system is not giving importance to Production receipts is worrying me. Can you please throw some light.

Thanks & Regards

Ugamesh

[Former Member]

Hi Ugamesawara,

Make sure the PLANNING VERSION (/n/sapapo/MVM) has the appropriate setting for "Safety Stock consideration"

You have the following options:

¡ Do Not Consider Safety Stock (u2019 u2019)

¡ Consider Virtual Safety Stock Elements (2)

¡ Consider Safety Stock Requirements in SAP liveCache (3)

If you are using option-3-Consider Safety Stock Requirements in SAP liveCache, Before running Optimizer run, you need to run the following Heuristic as part of your Prod Plan Background run:

SAP_PP_018, which generates safety stock requirements in the liveCache.

Thanks

Kumar

[former_member187488]

Hi,

Please first make sure that:

1)In product master, you have maintained safety stock on 'lot size' tab.

2)In product master, 'Procurement' tab, whether you have set anything for the below two fileds:

Prod. Storage Costs

Safety Stock Penalty

If storage costs is high, you may not get stock created.

3)In optimizer profile, you set other option than 'Ignore safety stock' on the first tab.

Then you go to /sapapo/opt11 to check the optimizer log. Find your log, and push the application log icon (on the second column).

In the Input log, there's a table calls 'ET_LOCPROD'. Check whether safety stock is correctly input.

You can also check result log, but if you use 'Expain' functionality, you may get a better view of the result.

Regarding the source of supply, optimizer source determination is based on costs.

If the costs on PPM/PDS is more than transportation lane, transportaion lane will be chosen and distribution receipts are created instead of production receipts.

Please refer to online help http://help.sap.com/saphelp_scm70/helpdata/EN/da/8df3128121304a8dc1eef961a6d3a8/frameset.htm

Source Determination in Supply Network Planning -> Source Determination (Optimizer)

Best Regards/Ada

[Former Member]

Hi,

1. Check in the Optimizer profile whether you have enabled the radio button "ignore safety stock".

Disable this setting and take an opt run and see whether safety stock is getting picked up in the opt log

under Input Log in table " ET_LOCPROD".

2. The optimizer considers safety stock as a soft constraint that can be violated with incurring penalty

costs. In order for the optimizer to take safety stock into account, you have to define penalty costs

for violating safety stock in the Safety Stock Penalty field on the Procurement tab page of the location

product master. These costs must be higher than the storage costs. If not, the optimizer would never plan safety stock.

Regards,

nandha

[Former Member]

Please check Optimiser profile for safety stock ignorance or check the costs assigned to safety stocks and you should have your answer.

[former_member197994]

Dear Ugamesh

I've got no clue for the 1st issue, but for the 2nd one, is it possible that the inhouse production has a much higher cost than EP?

BR/Tiemin