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Issue of demands remaining unfulfilled despite of stock in SNP optimizer

Hello everyone,

We are facing one peculiar issue of demands remaining unfulfilled despite of stock lying at the depots.

Following is the scenario which is causing demands to remain unfulfilled:

We have very high ND Penalty maintained at these depots and it is 1000 times safety stock penalty. Storage cost at these depots are minimal compared to NDP and SSPen.

Now, at the start of planning horizon, there is opening stock lying at the depot and there is equal demand on every day. But even with stock this demand is not satisfied. The reason being that there is no STR happening to depot from plant because of capacity constraint, so optimizer has to incur ND Penalty in any case. So, optimizer is trying to satisfy the demand that comes on later dates, so that it can save on safety stock penalty cost.

e.g. There is stock in hand of 700, every day demand of 100 and no STR happening in buckets 1-14. Safety days' supply is 7 days. In this case, optimizer is satisfying demand of bucket 8-14 with stock 700, so that it can save safety stock penalty for buckets 1-7.

Our requirement is that stock should be consumed immediately to fulfill demand starting from bucket 1. Is there any way we can give higher priority to demand over safety stock requirement so that above scenario does not occur?

Note: we are using cost-based prioritization.

Former Member
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