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Re: Running Optimization and the Storage Cost is changing for Stock On Hand

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Thanks a lot Rai,

sorry for late reply i was having some issue in accessing my account.

I still have some issue let say, I'm running the Optimizer with Considering the Shelf Life, I have Shortage on 05/21/2016 with 13790, and I entered manually supply with 14120 on 05/22/2016 which cover the 13790 and the remaining is 330.

I have used the Hard Constraint in the Optimizer Profile ( Dispose the Expired Products ), which will not use the expired products and my Shelf Life is Only 5 days,, now when I run the optimizer I see the Penalty Cost for Storage is 1130588.09, and I as you said the Penalty cost is the Storage Cost + Procurement Cost.

Q1: The Total Storage Cost should 330*1.000(Procurement Cost ) but the Total cost is around 1 Million, which is not correct.

Q2: As my Shelf Life is 5 Days only, and I have a demands on 06/04/2016 with 10 , after I run The Optimizer 7 of these demands have been covered from the remaining 330 and that 7 Supply are created on 05/22/2016, Why this behavior?  I would expect the Optimizer to not use from the 330 and rather create 10,20,300 as planned order.

 

thank you and Regards

 


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