Is it possible to model the costs for delaying the demand in S&OP? I see that we model the prices. These are the non-delivery penalties. Is there a way to model the delay penalties and the maximum delay as well?
Currently, it's not possible to models the costs to delay the demand. Is there a use-case from customer who is looking for this. Would be interested to know.
It was required in the S&OP process of Adani Ports. If there are resource constraints the demand (discharge of the vessels at the ports) could be delayed incurring some penalties. This had to be compared with the cost of procuring the additional capacities.
I see this as a requirement in any industry where we work with a backlog. In the automotive sector too, it is permissible to carry over some backlog to the next few time periods. In the case of industrail machinery, it is a common practice to work with backlog and the key idea is to minimize the delays.
I think you should take this as a key requirement in the future releases.
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