Optimizer cost maintenance feasibility

[Former Member]

HI

This question is about feasibility of implementation of PPDS optimizer.

Why we choose optimizer and the uses is a very beaten down track and very few companies survive with optimizer. I am not touching that part, however I would like to understand your experience in implementation and use of optimizer, particularly in terms of :

1. Given the large number of variables in real life, how feasible is it from a business perspective to assign a cost to aspects such as

Production, procurement, storage, and transportation costs

Costs for increasing the production capacity, storage capacity, transportation capacity, and handling capacity

Costs for violating (falling below) the safety stock level

Costs for late delivery

Stockout costs ?

In your experience have you seen business users accurately determine these costs? This question is system agnostic, strictly from business point of view.

2. How has been your experience with the cost maintenance in system. I know updating numbers is no big deal but to make sure the numbers are all up to date and reflect the business reality is a big issue I guess. I believe the master data maintenance is almost a full time job for some one.

Thanks;

KA

[Former Member · Accepted solution]

i have experience in PPDS optimizer to schedule orders to the alternative product lines, in that scenario it is little bit easy--maintain the higher number of the delay penalty and priorities in the resource master.

if you want to maintain a very complex scenario i believe what you said : the master data maintenance is almost a full time job . as in the SNP optimizer, the first time setup is very hard job, and then, for the people who support the system or business, it is extremely difficult to understand the result.

so, that depends on you requirement, what problems you want the optimizer to resolve.

good luck.