Max Stock & Good Receipt Time with Optimizer

[Former Member]

Hello,

We are attempting to use the optimizer to maintain a max stock level (Max Stock = 750 ) constraint at a location. We are also using a Good Receipt time (Good Receipt = 1 day) for this location/product. Currently when we execute the optimizer (discrete) the system is exceeding our max stock value we have maintained in the product master because of the Goods Receipt Time.

For example on 09/15 we have an on hand quantity of 200 units. On 09/16 we have demand for 200 units, bringing our on hand quantity to 0 units. On 09/17 we have a receipt of 950 units to fulfill the demand of 200 units and bring our stock up to maximum level, resulting in a stock on hand quantity of 750 units for this day, which is our maximum stock level for each day.

However, the receipt of 950 units on 09/17 is in reality received at the location on 09/16, because only one-day transport time is defined. Utilization of Goods Receipt Time is causing us to go over our max stock of 750 units defined. Any ideas how to resolve this issue?

Thanks

[srinivas_krishnamoorthy · Accepted solution]

I would assume max stock level to be a softer constraint compared with meeting the demand on time. Can you confirm what would have happened had you received 950 units one day later, say by decreasing the GR days to 0 ? If the receipt date were pushed out without violating the max the stock level, I would conclude the max soft level to be a soft constraint.

Also check the result when GR time is 2 days.

I would also experiment with keeping inital stock on hand beyond the max stock level and watch it fall below max stock level before calling any receipts.