Quota in Optimiser

[Former Member]

Hi,

I have a typical requirement where I need to propagate demand to suppliers from the plant based on a certain Min. quota arrangement criteria. After propagating the demand based on min quota the remaining demand at the plant should be assigned to the supplier based on minimum cost. This min quota arrangement is their because of Min vol. commited to supplier.

Eg:

Plant P:

Demand: 100

Min Quota: S1: 20

S2: 30

Cost of prod S1: 10

S2: 20

first it will propagate 20 to S1 and 30 to S2.

Now the remaining 50 it will propagate to S1 based on cost as production cost for s1 is less than S2.

Is their any means by which we can implement this scenario in APO?

Thanks,

Sanjog

[Former Member]

Inbound Quota does not work in SNP Optimizer. Based on cost differential, optimizer will procure from S1 than S2.

CA

[Former Member]

Hi,

How the data for min part is defined ? is it going to fixed/month ? If that is the cast there is a solution.

Shibu

[Former Member]

Hi Shibu,

Ya you can assume quota is fixed/months, also the min quota is not ratio as we consider in APO but pure %, I mean if min quota is 20:30 then this means it will procure 20% from one source 30% from the second source and remaining 50% based on cost.

Can you please help me in modelling this as you mentioned you have got some solution.

Thanks,

Sanjog

[Former Member]

With the % life is going to more complicated. The trick is to fix the purchase requisitions based on quantity (which you need to calculate now based on %). And configure optimizer for not to delete the existing orders. Optimizer will use the existing Purchase Requisitions and rest get sourced from the most cost effective supplier.