Safety Stock inside APO Optimizer

[Former Member]

Hello experts,

I have been facing a weird behavior inside the APO Optimizer. Safety Stock inside ET_LOCPROD used to work flawlessly for both DCs and Plants, but something has happened and it is calculating the Safety Stock only for a few buckets in the past for DCs.

MB method is maintained inside product master, along Safety Stock (days) and all the costs related (storage, safety, procurement). The "ignore safety stock" radio button is not checked inside the optimizer profile.

The planning book which the optimizer is running on the and the variant for the optimizer sets the planning horizon from 30 days in the past to 12 days to the future.

It is calculating for only a few buckets in the past, but from bucket 31 (which is today) and on it is zero.

I really appreciate the help.

tks,

Pedro

[Former Member]

Hi Pedro,

In the product master, tab procurement, try to set low Storage cost and high Safety stock penalty.

The cost of maintaining the safety stock is the (product storage costs * Number of days in the planning horizon * Safety Stock Qty) + (Cost of producing/Procuring safety stock quantity).

Hope that can help you.

Thanks.

Regards, Marius