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Former Member

APO SNP optimiser is planning zero safety stock

I am using APO V5.1.

I am using the SNP optimiser to plan a product at a location which has safety stock method SB with a fixed safety stock qty defined on the product master.

When I run the optimiser the safety stock qty is planned as zero, so the fixed safety stock qty is being ignored.

Is this expected behaviour?

In my scenario the demand is very stable, but I still want the system to respect the fixed safety stock qty.

Thanks for any advice on this...

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    Former Member
    Jul 13, 2013 at 09:59 PM

    Hi,

    Did you maintain "Safety Stock Penalty" in the procurement tab of the material master in APO ?

    Unless you maintain some value here. optimizer will not plan any safety stock.

    Regards,

    Mitesh

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    • Former Member Former Member

      Hi,

      As Mitesh said, Safety stock panelty should be greater then (Cost for producing safety stock+ storage cost of safety stock quantity).

      To plan safety stock qantity, resource capacity should be availabl if it is inhouse.

      Please maintain cost like - Nondelivery cost > delay panelty Cost > Safety stock Panelty > storage Cost

      Please do this and let me know..

      regards

      Kishor