1. 2. 3. 4. 5. 6. 7.
SNP Optimizer- Solution for Make To Stock SCM Table of Contents Revision History. 2 Abstract 5 Conventions se!. 5 " #ntro!uction. 6 $ SNP Optimizer 7 2.1 Master Data in optimizer 8 2.2 Transaction Data in optimizer 8 2.3 Costs in optimizer 9 2.4 Optimization Logic. 9 2.5 Optimizer es!"t #na"$sis. 1% 2.5.1 &np!t Log. 1% 2.5.2 O!tp!t' es!"t Log. 14 % Conclusion. 16 & 'efinitions( Abbreviation an! Acronyms. 16 ) References. 16 * Ackno+le!,ements. 16 Table of #llustrations
Figure 1: Optimization Model in terms of the Masters and Constraints
(ig!re 2) Optimization mo*e"
Figure 3: Supply Chain
Abstract SNP Optimizer is a uni-ue tool to mo!el Supply [Link]/ #t is a perfect tool to 0Make To Stock1 scenario an! +orks on Cost base! prioritization/ Optimizer Consi!ers 'eman! 2lements( safety S tocks an! various receipts elements as +ell as creates Stock transfers 3 Pro!uction Or!ers/ Optimizer enables plannin, of 456s an! S456s too/ Optimizer consi!ers resource capacity an! !oes constraine! base! plannin,/ SNP Optimizer result analysis is not available in any stan!ar! !ocument an! t.e analysis is provi!e! by SAP as pai! consultin,/ T.e paper .i,.li,.ts t.e Make to stock mo!el mappe! in SNP optimizer an! t.e complete analysis of t.e SNP Optimizer result lo, Conventions se!
1 Introduction
SNP optimizer is a tool use! by APO +.ic. +orks on t.e cost lo,ics/ 7arious costs in t.e supply [Link] can be t.e ,ui!eline for an optimal solution/ T.e optimizer +orks on t.e t+o ma8or ob8ective functions an! [Link] are Profit ma9imization an! Cost Minimization/ #f +e are operatin, on 4ront 2n! supply [Link] +it. a !ecision to increase
mar,ins +e can use Profit ma9imization/ #f +e are operatin, in t.e back en! of t.e supply [Link] t.e ma8or ob8ective of t.e business is to save cost .ence t.e Cost Minimization ob8ective can be use! to operate in [Link] scenarios/ 4i,ure ": Optimization Mo!el in terms of t.e Masters an! Constraints
2 SNP Optimizer
4i,ure $: Optimization mo!el
4i,ure %: Supply [Link]
2.1 Master Data in optimizer
T.e essential master !ata consi!ere! in t.e SNP Optimizer can be liste! as follo+s:
2.2 Transaction Data in optimizer
T.e essential transaction !ata consi!ere! in t.e SNP Optimizer can be liste! as follo+s:
2.3 Costs in optimizer
4ollo+in, are t.e costs +.ic. are consi!ere! in optimizer:
2.4 Optimization Logic
T.e ob8ective function of t.e optimizer ,ui!es to mo!el to keep t.e Total Cost of t.e supply [Link] to be minimum/ Total Cost of t.e mo!el can be !efine! as: Here to save one set of cost +e .ave to incur [Link]/ [Link] can be e9plaine! +it. e9amples: 1. 2. To sa+e on Deman* Lost an* Deman* De"a$ pro*!ction an* Transportation Cost is to ,e inc!rre* &f -e store a .!antit$ at a "ocation to meet t/e safet$ norm -e /a+e to inc!r t/e 0torage Cost T.e optimization mo!el is create! as e-uations an! solve! usin, t.e ;inear Pro,rammin, problem/ An optimization mo!el in [Link] optimization consists of four key ob8ects:
2.
1. 2.
Optimizer !esu"t #na"$sis
T.e results of t.e optimization run are store! in t.e Optimizer lo,/ T.e lo,s are split in t+o .alves &np!t Log -/ic/ /as a"" t/e inp!t *ata consi*ere* for t/e r!n O!tp!t Log -/ic/ contains t/e res!"t of t/e r!n
2. .1 Input Log
ET_BUCKDF: Contains t.e !etails of t.e bucket an! t.e .orizon of t.e run
Masters considered in the Logs:
Location Products: To [Link] if t.e Pro!uct an! t.e location .ave participate! in t.e run ET_ARC: Contains t.e !etails about t.e lanes bet+een source to !estination an! t.e Transportation 'uration
ET_ARCMAT: Contains [Link] !etails about t.e lanes at pro!uct level an! t.e Transportation Cost <Per 2A= ET_PROMO: Contains !etails about PPMs t.e Min ;ot Size Resource use! an! t.e Pro!uction Cost ET_PROMAT: Contains !etails about input pro!ucts in t.e PPM an! t.e [Link],e >uantity as 7ar >uantity ET_PRORES: Contains !etails about t.e time re-uire! to pro!uce t.e [Link],e >uantity an! also .as t.e resource on +.ic. t.e pro!uction +ill .appen ET_RESC: Contains !etails about t.e capacity of t.e resource !efine! in Sec an! t.e initial consumption of t.e resource <if any=
Transaction Data in the Logs:
ET_DEMA D: Contains t.e 'eman! per bucket/ All t.e [Link] 'eman! Class +ill be reflecte! in [Link] ;o, ET_DEMCLT!M: Contains t.e 'eman! 'elay Cost <Per 2A per ?ucket=( 'eman! ;ost Penalty per perio! <Per 2A= per bucket/ Also t.e permissible !eman! !elay <#n 'ays= ET_LOCPROD: Contains t.e #n-Transit an! t.e safety Stock >uantity an! also t.e Safety Stock number of !ays maintaine! at t.e location ET_LOCMAT: Contains t.e #nitial Stock present for t.e pro!uct at t.e locations/ Also .ave t.e information about t.e Safety Stock 7iolation Cost <Per 2A Per 'ay= an! Stora,e Cost <Per 2A Per 'ay= at eac. location ET_RES! !: Contains t.e fi9e! pro!uction or!ers
2. .2 Output%!esu"t Log
!T_DEMA D: Contains t.e !etails of t.e 'eman! met for t.e bucket in [Link] location/ 'eman! !elaye! is also visible in [Link] lo, Ca"cu"ations: 'elivere! >ty %@A is !elaye! by a ?ucket <Beek in [Link] case=/ 'elay per 2A Per bucket for COMH"AA at A?'H is "%/*/ Total 'elay +ill be #$%&'#()&$*$ da+s ,or one -ee./ 0 #1223 !T_ OTDEL!: Contains t.e !etails of t.e 'eman! unmet for t.e bucket in [Link] location/ Ca"cu"ations: T.e !eman! lost is for &&A 2A an! t.e !eman! lost penalty for bucket "@ for 'eman! Class $ for COMH"AA at A?'H is &$A$/&AA/ De4and Lost Pena"t+ 0 33%&32%2(3 0'536%1) !T_PROMO: Contains t.e !etails of t.e Pro!uction lots pro!uce! an! Total Pro!uction Cost Production 7t+ C Pro! >ty D [Link],e >uantityC $/$@AD %%%%)/A C @)*@" 2A PPM Cost C Pro! >ty D PPM Costs C$/$@A D %E@F** C EEA)FF Pro!uction >ty is roun!e! to [Link]! !ecimal/ Actual value is 2(2)6$53 !T_ARCMAT: Contains t.e !etails of t.e total Stock transfer .appene! to A?'H Trans8ortation cost0 >uantity <Stock Transfer= D Transportation Cost per 2A <2TGARCMAT= C$"E%/**@ DA/AFF C $"*/"E !T_LOCMAT: Contains t.e !etails of t.e Stora,e Cost an! t.e Safety Stock 7iolation Cost Ca"cu"ations: Tota" Storage Cost C Stora,e >ty D Stora,e Cost per 2A Per 'ay D 'ays in t.e ?ucket C &$F/%%D A/"@A D@ C )"A/FA@ Sa,et+ Stoc. 9io"ation Cost C Safety stock violation >ty D Safety Stock violation penalty Per 2A Per 'ay D 'ays in t.e ?ucket C @**/**@D $/"@* D@ C ""*@@/E*@
3 Conc"usion
012 Optimizer is a !ni.!e too" to mo*e" 3Ma4e To 0toc45 scenario in 0!pp"$ c/ain. 6or4s on t/e Cost ,ase* prioritization an* consi*ers Deman* 7"ements8 0afet$ 0toc4s an* +ario!s eceipts e"ements as -e"" as create 0toc4 transfers 9 2ro*!ction Or*ers
T/is paper -i"" ena,"e an 012 Cons!"tant in Compan$ to interpret an* ana"$ze t/e p"anning process in an 012 optimizer. T/e cons!"tant -i"" 4no- not on"$ 4no- t/e masters an* transaction *ata consi*ere* in t/e r!n ,!t -i"" a"so 4no- t/e cost *efine* an* t/e o!tp!t of t/e optimizer to ,e c/ec4e* in -/ic/ "ogs
4 De&initions' #((re)iation and #cron$ms
#cron$m 22M Description 2ro*!ction 2rocess Mo*e"
!e&erences
&tem ea" Optimization -it/ 0#2: #2O Description ;osef <a""rat/= T/omas &.Main*"
* #c+no,"edgements
1ame Description