Is it possible for OBP to prioritize safety stock?

[darien]

Hi

I have 2 questions about Order-Based Planning.

1. Is it possible for OBP to prioritize safety stock of DC by Planning Run profile or other apps?

2. If there are several locations and I prioritized one DC by Planning Run profile , this DC's safety stock is also restocked as priority over other location's safety stock?

Best regards

Shun

[keyhani · Accepted solution]

Hello,

the OBP finite heuristic doesn't support this feature yet. When using the OBP optimizer, you could achieve it by setting appropriate costs.

Kind regards,
Mohammad Keyhani

[darien · Accepted solution]

Mohammad Keyhani

Thanks for your answer.

So you mean If one DC's safety stock violation cost is higher than others in planning run profile, this DC's safety stock is restocked as priority over other location's safety stock?

best regards

Shun

[keyhani · Accepted solution]

Hello,

in general, yes. By assigning higher safety stock violation costs to a DC (compared to the safety stock violation costs at the other locations), you could achieve such a prioritization. Keep in mind that the optimizer always aims to find a plan that minimizes the overall costs. If keeping safety stock level at that DC would cause higher overall costs (e.g. according to inventory holding costs and production costs etc.), the optimizer could still decide to violate the safety stock at the DC in order to return a plan which has lower overall costs.

Kind regards,

Mohammad Keyhani

[darien · Accepted solution]

Hi

I have understood.

Thank you so much!

Shun