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Former Member
Nov 07, 2007 at 11:47 AM

SNP Optimizer, Issue with Procurement Priority in Optimizer Profile & LotSz



I have a SNP Scenario of Products being sourced into a Regional Distribution Center (RDC) from 3 Production Plants (P1, P2, P3). The Demand at the RDC is a Mix of Demand coming from DCs further in the Network, Forecast for this RDC and the Customer Orders/Deliveries from this DC.

Wanting to use the SNP Optimizer to Split the Supply (PRs) to the RDC into the Multiple Manufacturing Plants via the Production Pipeline. I have used Procurement Priorities in the TLB Lane to define the Primary & Secondary Choice of Plants and have defined all the Transporation Costs, Storage Costs, Delay and Non-Delivery Penalty Costs and finally the Safety Stock Shortage Penalty at the RDC Location for every Product. Also at the Product Location we have defined LotSizes and Rounding Values in which I want the Replenishment PurReqs from the Plant to be created.

The SNP Profile is with 'Linear Optimization' I am using is WITHOUT the 'Generate Costs' as I have defined the Costs and also I have asked the System to use the Transportation Lane Priorities. I am finding that the Procurement Priority is not being considered and also the LotSize Rules are not being Obeyed in the PRs being generated by the Optimizer. Also I am finding that if the Production Pipeline is not enough at the Plants to cover the Complete Demand at RDC, the System is not even Creating the PR split between Plants, causing the Complete Demand to not flow back to the Plant. So I have 3 Issues ...

1. Lot Sizes not being Obeyed by the Optimizer.

2. Transportation Lane Procurement Priorites not being Obeyed.

3. Supply for Complete Demand Shortage at RDC not being Generated, if the Production Plants do not have Enough Production in Pipeline.

Can someone help me with these 3 issues ? I have been in SCM-APO for around 5+ years, but never used the Optimizer and am unable to figure this out.


Ambrish Mathur

Cell : +91-9820139681