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Former Member

Configuring SNP optmization profile.

Dear all,

We are implementing SCM component -SAPAPO. Following are my doubts.

We have a scenario where in system has to optimize the production/sales plan in the following way

We have set of customers who has long term contract for whom we need to satisfy the demand as a first priority

We have set of customers strategic customers whose requirement has to be met as a second priority.

We have 3rd set of customers whose requirement has to be prioritized based on the netback(revenue-cost) what we are getting. We can postpone their delivery date depending on the netback.

Now the question is in the SNP optimization I have entered the penalty cost as netback and I am trying the optimize the revenue. But I am not ion the position to set the parameters for 1nd and 2nd set of customers and system is prioritizing purely base on the netback even though customer is having long tem or strategic customer.

How to solve this issue?

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2 Answers

  • Best Answer
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    Former Member
    Oct 17, 2008 at 05:36 AM

    Maintain Location dependent Penalty cost in SNP1 tab of product master for Highest priority customer maintain Higher Penalty for non delivery with minimum delay (in no. of days) for Low priority customer maintain low non delivery penalty with some more delay allowed so Optimiser will try to meet the the demand of customer as per cost maintained.

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    • Former Member Former Member

      1. Maintain Location dependent Penalty cost in SNP1 tab of product master for Highest priority customer - u man Panelty for ND?

      Yes , Higher Penalty for Non Delivery for Priority customer will ensure that solution will try to satisfy demands for these customer first to keep cost of Non delivery low in case of resource constaint.

      2. Maintain Higher Penalty for non delivery with minimum delay (in no. of days) for Low priority customer - how it will help?

      Lower the number of delay will ensure that demand will fulfilled near to required date for priority customer as compare to second priority customer.

      3. Maintain low non delivery penalty with some more delay allowed - to which type of customer?

      This is vise versa mentioned in above two points will try to fulfill demands of second priority customer with some delay if some constraint is there.

  • Oct 14, 2008 at 11:00 AM

    Dear Rajesha,

    Hope you are on SCM 5.0

    In SNP you can maintain netback cost for optimisation but cannot maintain different costs for same products based on customers.

    Even if you mention product priority there is no customer priority in SNP.

    What you may think of doing is to maintain high transportation cost in the transportation lanes where the customer has low priority.

    Customer A top priority

    Customer B Medium priority

    Customer C Low priority

    T- lane Plant to A zero cost

    T lane plant to B medium cost

    T lane Plant to C high cost

    This would make optimiser fulfil demands of A over B.

    Agreed- not a clean solution but this is what comes to my mind immediately.

    You will have to create demands at customer locations. If you are planning based on actual sale orders, this solution will not work.

    Regards

    Nitin Thatte

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    • Former Member

      Dear Nitin,

      Thank you for your quick response. It is a very good sugession. I will try your idea and I will wait for some more answers. Meanwhile if you get a better idea, i request you to pass it on.