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Nov 15, 2012 at 03:10 PM

Understanding the Optimizer scenarios

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Hi folks,

We have optimizer running every week for all our APO Location products. We have one-to-one T-lanes & one-to-one Vendors, I was wondering why an Optimizer is required in such a case?

For example:

Material = 1001001 exists at Locations = (manufacturing plant )5000, (DC's) 5001, 5002, 5003,5004, 5005 & Vendor (V001002)

FCST is populated as PIR at all DC's & T-lanes exists from 5000 to all DC's & from Vendor to 5000

When the Optimizer is run, it creates Pur Rqs & STO's & propagates demand backwards from DC's to 5000 & finally from 5000 to the Vendor location.

As there are no competing scenarios, i.e no cases where two or more options of sourcing are there, why is an Optimizer required?

Similarly there are no many-to-one scenario between manufacturing plant vis-a-vis DC's, all are one-to-one scenarios.

Ideally had there been two vendors both connected to 5000 with corresponding T-Lanes then Optimizer might have done a comparison of "Costs/ GI-GR times/ lead time" between these two competing Vendors & picked up the optimal cost effective one... isn't that what is expected?

What is the optimizer optimizing in this case?

Kumar