SNP Planned Order generated even there is no Demand

[Former Member]

Hi,

Planned order was created by SNP run (optimizer) even if there is no demand. Please help to provide root cause on why this is happening.

[former_member187488]

Do you have safety stock or reorder point?

[Former Member]

Hi Ada,

There is no safety stock maintained. Where can I check the reorder point?

In addition, the finished product is MTO production, does it affect in planning production order?

Thanks

[rupesh_brahmankar3]

Hello Bas,

Have you checked the optimizer log?

Please check following details

ET_DEMAND: Contains the Demand

ET_DEMCLTIM: Contains the Demand Delay Cost

ET_LOCPROD: Contains the In-Transit and the safety Stock Quantity

IT_PROMO: Contains the details of the Production lots produced and Total Production Cost

In the 'Solution Methods' tab of the Optimizer profile, have you specified that the Optimizer carries out aggregated planning ?

Best Regards,

R.Brahmankar

[Former Member]

Hi R.Brahmankar,

Thanks for your input.

I have also checked the optimizer logs and it doesn't help.

Also, Aggregated planning in solutions method tab in Optimizer profile is not checked

Regards

[Former Member]

Hi Bas,

I had faced similar issue in one of my projects wherein opt was planning even when there was no forecast.

For starters, try the below:

1.) increase storage cost of finished goods. Ensure storage cost is being captured in input log of opt log.

SAP had told us that low SC of 0.01 & 0.1 did not help opt decide in a small time limit with a large dataset. Ours was a complex supply chain model.

2.) run optimizer on this single product, Plan output should be only whats required. this confirms that MD should be correct.

3.) Is optimizer solution optimial? if not, increase runtime of optimizer and then run again for entire dataset.

As rupesh mentioned, its a cost based decision that optimizer is taking. Check in detail the input and output log of optimizer to get a reason.

Regards,
Vinay

[Former Member]

Hi Bas,

Be sure that you don't have any past forecast in the system. Also check if you have safety stock entered at product level!

As R.B expert explained you, could be also a cost based decision made by optimizer. Maybe at the location in cause you don't have any penalty or prod.storage costs entered in the system (or low costs) so the optimizer will choose to produce, stock and ship the items from this location. However in this case (in my opinion) you should have some network requirements from DCs or customers through transportation lanes to the location in cause.

Thanks,

Regards, Marius 

[rupesh_brahmankar3]

Hello Bas,

It's very difficult to answer without knowing anything about your supply model.

There could be many reasons

Like storage costs,  if the storage costs for the semi-finished products that make the finish is bigger than producing and storing your finish, you will have these orders planned.

SNP optimizer planning method can be modeled to consider supplies in future buckets and balance shortage/delay costs with storage and production costs. Based on the costs maintained outcome might be to accept a temporary shortage because the delay costs are smaller than storage costs and vise versa.

Please refer the SAP help link,

Optimization-Based Planning - Supply Network Planning Run - SAP Library

Best Regards,

R.Brahmankar

[Former Member]

Hello R.Brahmankar and Marius,

Thank you for your valuable inputs. With regards to the cost maintained, the storage cost of the finished product is higher than that of the semi-finished product.

The planning method of the finished product is maintained as weekly. Is this something that needs to be consider? What will be the effect if it the planning method is weekly?

In addition, the plant generated production planned with respects to it's rouding value and there is no safety stock maintained at the product level.

Kindly help to investigate.

Thanks in advance.

[Former Member]

Hi Bas,

If the orders created are MTO you should be able to find the requirement with Order Context help (for example in Product view).

Please check in the product view, tab Lot Size check the lot size procedure too.

Thanks,

Regards, Marius

[Former Member]

Hi Marius,

There is no lot size maintained and the lot size procedure is lot-for-lot. This product is a rework

and Procurement type is E (in-house)