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Former Member

SCm 4.1 cost optimisation

We are using SCm 4.1 and in Snp cost optimiser, is there any way out to use the optimiser to to not plan supplies in case no demand exists on the destination location. We have tried by using storage costs and it works but in case somebody misses out onmaintaining the same whenever optimiser runs irrespective of the demand it creates STR,

Is there any way out to curb this

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    Former Member
    Feb 01, 2008 at 09:03 AM

    Hi Rakesh,

    You need to maintain all the cost correctly for SNP optimiser to give optimal result.

    If you think their can be a scenario where cost will not be maintained properly then you can maintain Transportation cost between the locations so that if their is no demand it will not incur any transportation cost to move the supplies.

    But the problem is the transportation cost should be actual cost incurred and then other cost like Demand loss, lateness penalty (should be kept high) should be maintained such that it incurs transportation cost to meet the demand.

    I am not sure what your scenario is, revert back in case of any issues

    Thanks,

    Sanjog

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