Can SNP Discrete Optimiser used for Profit Maximisation ?

[Former Member]

Hi All,

Can anyone suggest if SNP Discrete Optimiser could be used for Profit Maximisation ( as an Objective Function)

If yes then how ?

Regards

Harsh

[sourabh_jain66 · Accepted solution]

Hi Harsh,

Yes SNP cost optimizer can be used for Profit Maximization, this is the objective behind running optimizer.

System interprets the penalty costs for non-delivery in the SNP 1, tab of product master as lost profits and work towards maximizing the total profits achieved.

Formula used in the calculation is as follows;

Total of all delivered location products, multiplied by the penalty costs for non-delivery that have been defined for these location products, minus all the costs defined in the optimizer cost profile (such as production costs, storage costs and transportation costs). The total profit is displayed, when you run the optimizer in interactive planning within Supply Network Planning (on the Solutions tab page).

Rgds

Sourabh

[sourabh_jain66 · Accepted solution]

Hi harsh,

Do you get what you were looking for, plz let me know if you need any further info.

Rgds

Sourabh