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Dec 09, 2020 at 01:26 AM

difference on how TS based suuply heuristic and optimizer work


Hi experts,

I would like to understand how differently two planning engines work in the below situation.

there is a receiving location that receives a product from two sourcing locations called Sourcing location A and B. According to the predefined setting in MDT or KF, the sourcing ratio of A and B are respectively 0.7 and 0.3 while transportation cost of A is higher than B. In this case, my understanding are the following;

When heuristic is run, even though transportation cost A is higher than B, heuristic's calculation is that the receiving location receives 70 % of the product from location A. this is because Heuristic does not respect cost or finite constraints.

When optimizer runs, on the other hand, even though sourcing ratio is predefined in SOUCELOCATION MDT, optimizer's calculation is that the receiving location receives 100% of the product from location B. This is because Optimizer respects only finite constraints, not sourcing ratio.

So my questions are;

1. in the situation above, I assume two planning engines bring the result mentioned above. Is my understanding correct?

2. Reading an e-book elaborating on both planning engines, module S&OP covers only supply planning heuristic while module Supply and Response covers only supply planning optimizer. Is that correct(I wanna make sure S&OP module does not cover optimizer. )

Thank you & Best regards,

Kenta Kono