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Dependent Demand not considering Optimizer storage cost

Feb 15, 2017 at 10:26 AM

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Former Member

Hi experts,

I have two Products A and B which have a same component C which is maintained as Input product in the respective PDS of A and B.

Demand at A and B is 200 each in bucket 1, but the rounding value maintained at C is 2000, hence the total production is 2000. How will the excess distributed to A and B?

Business wants to just meet the demand at A with 200 and remaining production of 1800 should go to product B. We have tried to model this by setting up the Storage cost at A to be higher as compared to B. However optimizer is not respecting this cost and distribution is random. If demand is changed, higher production is at product with higher demand, but costs are not getting considered to just meet the demand at one product with lower storage cost.

How can this be modeled in the system?

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1 Answer

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Former Member Apr 12, 2017 at 09:31 AM
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What is the storage cost you have maintained for product C ?

If you want that Product C should not remain in stock as C but must get converted to either A or B; maintain very high storage cost for C and relatively higher storage cost for A and lowest for B. If storage cost of C is lower than A & B, optimizer will try to hold C in stock.

Regards,

Nitin

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