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Supply Optimiser running but not throwing expected result


We have uploaded the following key figures:

Max Stock (Inventory): 200

Initial Inventory: 100 (Current period)

Target Inventory: 100 (Previous period)

Inventory holding cost rate: 0.1

Inventory target violation cost rate : 0.2

Production Max Lot Size: 150

Production Min Lot Size:25

Fixed production cost: 5

Production cost rate: 0.25

p ratio : 1

T ratio: 1

T max lot size: 160

T min lot size: 50

Fixed transportation cost: 15

Transportation cost rate: 0.5

Transportation lead time 1

Resource Capa supply: 720

Resource Capa Overload Threshold :0.85

Capa consumption: 0.001

There are periods where the Capa Demand is higher than Capa Supply. However when we run constrained demand plan (Optimiser), we are not able to get any output which is actually normalizing the Capa Demand. The Optimiser is also running for 4 days.

We are also not able to understand the keyfigure "LocationRatio" in PERPRODLOCLOCFR table. How is it different rom TRatio?


Atri Kundu

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  • Best Answer
    Posted on Jan 12, 2016 at 01:47 PM

    Hello Atri,

    fixed costs and minimum lot-sizes require discrete decisions. These are very hard for the optimizer and should therefore be limited as far as possible. Please check if you need all these fix costs and minimum lot-sizes and/or use the discretization horizons.

    Additionally it is highly recommended to set a time limit in the optimization profile if discrete decisions are involved. Please note: without a time limit the optimizer will run until optimality is reached.

    Please start with 1 or 2 hours time limit and see if a solution with a suitable quality is found.

    I couldn't see any non-delivery costs in your list. Please add them if they are missing - they are essential to fulfill the demands.

    Concerning KF LOCATIONRATIO: Please see
    for a description.

    What do you mean with "Resource Capa Overload Threshold :0.85"? There is no such functionality in the optimizer.

    Kind regards,


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