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Nov 12, 2020 at 09:05 PM

Using Inventory Target Violation Cost Rate with Target Subperiods of Supply

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Hello,

We are using TS Based Supply Optimizer for Supply Planning.

We are using the Target Subperiods of Supply (Days of Supply) to calculate the Additional Lotsize Policy Demand, based on the Dependent Demand. Is it possible to apply Inventory Target Violation Cost Rate to Additional Lotsize Policy Demand, which is used as an Inventory Target from planning perspective.

I know we can copy this Additional Lot Size Policy Demand into Inventory Target KF, but we will have to keep doing it every time the Dependent Demand changes. Also Optimizer would consider the addition of Additional Lotsize Policy Demand + Inventory Target to calculate the Projected Stock, which would result in double the inventory.

Is there a way where we can apply the Inventory Target Violation Cost Rate (Penalty) to meet the Additional Lotsize Policy Demand, then we can let Optimizer satisfy as much Additional Lotsize Policy Demand based on Days of Supply.

Any input is appreciated.

Thanks,

Mangesh Kulkarni