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Jun 05, 2020 at 01:56 AM

TS Supply Optimizer not giving expected results when Using Fair Share option

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Hello,

At a customer we are starting to use TS Supply optimizer using Fair Share option, with 4 segments and using Computed Expected Supplies in S&OP operator profiles, as we have multiple subnetworks.

In one of them, we are specifically checking three product IDs, let;s call them: A, B, C.

C is the product with the most demand, however is the least profitable and in a Fair share scenario business wants to prioritize the Products in the following order and assumptions

  1. A : Delivery everything you can of this first
  2. B : Delivery everything you can of this second
  3. C : Remaining capacity can be used to Delivery this product

The Customer Transport Rate is about the same in Average, for all customers of Products A and B, 1 CAD. For C is a little bit Higher depending of the transport mode we are using, About 2 to 3 CAD.

  • C can be produced in up to 4 locations: 1001, 1002, 1003, 1004
  • A Can only be produced in one location: 1001
  • B can be produced in up to three locations: 1001,1002,1003

In Plant 3701 All three products have one Production Resource assigned to their respective Source IDs. : RE001

All three products use only one component in their BOM and is the same for the three of them: D. This component is produced in house and has its own separate resource, it's the bottleneck of the process.

Trying to achieve business goals, I aimed to use a combination of Non-Delivery Cost Rate (NDCR), Production Cost Rate (PCR) and Inventory Target Violation Cost rate (ITCR)

  1. A --> NDCR: 80 ; PDC: 1 ; ITCR: 20
  2. B --> NDCR: 30 ; PDC: 2 ; ITCR: 20
  3. C --> NDCR: 0 ; PDC: 4 ; ITCR: 0.001
  4. D --> PDC: 0 (I used zero as I didn't want the different consumption ratios to affect the total cost)

The idea is to make the product with the biggest priority, the cheapest to produce and also the one with the highest penalty to not deliver. I thought it was a no-brainer and easy config but after hours of running scenarios I can't find a way for the optimizer to give the expect results.

in a Shortage Scenario, the optimizer is neither prioritizing A at production in plant 1001, nor at delivery. It is prioritizing C, which is crazy because is the one i'm trying to prioritize the least.

Your help to understand this will be appreciated.

Thanks