Optimizer planning receipts immediately for future demands

[Former Member]

Hi,

I have a situation in SNP Op runs where few SKUs-FGs are getting planned by the Optimizer for receipts immediately just like 'Push' in Deployment.
The FGs are sourced from a vendor in a TPM scenario wherein we don't have any resource attached to the TPM PPMs.
I have nearly exhausted checking everything but still want to know as to why this is happening.

Regards,
Satyasheel

[Former Member · Accepted solution]

Hi

If I understand correctly, you could have a demand in 6 weeks time but production is planned for today but it should be closer to the time of the demand.

If there are no resources in your PPM then effectively capacity is infinite so the only thing stopping the optimiser making and holding stock is the cost of holding that stock which if it is less than the cost of shorting a customer means that it will likely act as you have found.  This is even more likely if there is no cost on your transportation lane from your vendor.  Thus I suggest you check the costs on the transportation lane and for holding stock at the vendor and on your site and set them so that the cost of transport is higher than the cost of holding stock in the destination location which is also higher than the cost of holding stock at the vendor.  These costs should be fairly high with regard to the cost of shorting the customer.

I would also check that there are lead times on your transportation lane.

Unfortunately with these issues I find that it is a matter of creating the simplest model possible and then moving the costs up and down until a solution is found.  I also tend to run the optmiser in foreground for just the problem product as I change the costs as this helps to focus on the problem.

Hope this helps

[Former Member · Accepted solution]

Hi Laurence,

I just checked out your reply. I had corrected the same few days back by tweaking the production storage cost. So you were spot-on in identifying the cause . In this case as you mentioned, there is no resource for a capacity constraint. Only the costs and lot sizes had got a role to play.

Thank You.