Optimizer is not considering product storage cost

[Former Member]

Hi All,

After SNP Optimizer (lnr) completed Pln Ord are getting generated without considering 'prod storage cost'.

For example: If for certain FC is created on 10th of March, the pln ords r getting generated on 2nd of march...though the 'prod storage cost' are maintained in both the location (plant, customer). And the stock transfer is also happening early.

Please help.

Thanks,

Satyajit.

[Former Member · Accepted solution]

Hi,

Just check out your bucket offset and transportation lead time, if your offset is 1 and lead time is greater than 7 it will not consider cost for one week as the supplie are in-transit.

If the availability is within the same bucket only then the storage cost is taken into account.

Thanks,

Sanjog

[Former Member · Accepted solution]

Hi sanjog/Ian,

Thanks a lot for your inputs, however my bucket offset is 1, but transportation lead time is 5...I am going to modify the profiles and will go for another run n will be come back

Satyajit

[Former Member · Accepted solution]

Hi Satyajit,

Is tehe receipt happening in then same week, I mean aire their andefy holidays being defined in the time stream id.

Just check if the storage cost is not getting accounted for whether the supplies are in transit during that period or getting stocked at some location.

Thanks,

Sanjog

[Former Member]

issue was resolved...Thanks.

[former_member1230066]

The system picks up the bucket offset from the optimiser profile by default. If you have a specific material for which you want to adjust the receipt element ie SNP planned order you can define the bucket offset in the PPM . As the SNP Optmiser would honor the PPM Bucket Offset over the SNP Optimiser Profile Bucket Offset.

Prashant

[Former Member]

Hi

Remember that the optimisation profile is not just a case of the effects of one parameter (unless you set a cost profile with all other parameters at 0). I would check the costs associated with the other items you have, for example is there a safety stock cost and setting in place, what is the difference in transportation costs versus storage costs etc etc.

It may well be that another cost, means it is cheaper to ignore the storage costs differential in your case and make the product earlier.

Also, you need to consider the "Bucket Offset" factor for both transportation and production, unfortunately, no matter what you set it to the Optimiser will always take a value of 1.00 for scheduling of order creation, in other words availability at the start of the bucket. See OSS Note 434197 which has a good explainantion of the bucket offset in a PDF file and also has some related notes for it:

[Note 434197 - The Bucket Offset|https://websmp230.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=434197&nlang=EN&smpsrv=https%3a%2f%2fwebsmp202%2esap-ag%2ede]

Oh, and as Sanjog says whilst a product is in transport it has no storage costs so may be cheaper to move it earlier and incur no storage for that period. However this behaviour can be changed by a COPT10 optimisation parameter but you will have to speak to SAP themselves to get the details of that one I'm afraid.

Regards

Ian