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Former Member
May 20, 2016 at 09:41 PM

Running Optimization and the Storage Cost is changing for Stock On Hand

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Today is 05/20/2016 I have a Demand on 06/05 Stock on 05/20/2016 is 50000, Forecast on 06/04 is 50000/ and we have another Forecast on 06/08 of 10 / Now when I run the Optimizer without Shelf Life/ My storage cost for period of 05/20/2016 till 06/04/2016 is 500 in Optimizer Logs/ but when I run it with Shelf Life of (10 days) my Storage Cost is 69000 for period of 05/20/2016 to 06/04/2016/ why is the Storage Cost Different? assuming that the system some how calculating Higher Storage Cost for Expired Products, I see that the daily storage cost in the results from 05/20/2016 Till 06/04/2016. ?


Why is the Storage cost is Different from 05/20/2016 Till 06/04/2016, if we are assuming that the system is calculating Higher Penalty for Expired products/ from the period of 05/20/2016 to 05/30/2016 till the expired/ The storage cost should remain the same between with and without Shelf Life ? but I see during this period Also the storage cost got much Higher ?


Thank you