IBP Optimizer Costmodell

[OliverA41]

Hi,

In order to be able to use the IBP OPTIMIZER, costs must be deposited. The ratio of these costs to each other plays a decisive role.

Are there any templates or an approach how to create such a cost model for the OPTIMIERER?

Thanks

Oliver

[lingaiahvanam · Accepted solution]

Hi Oliver,

Your question is not clear, can you explain with one example.

The optimizer can be used in two methods Time-Series-Based Supply Planning Optimizer and Order-Based Planning: Constrained Forecast Run Using Optimizer. In both plannings, the algorithm considers cost factor.

According to the main use-cases, the optimizer offers two modes in time series based planning.

Profit Maximization

In this mode, the optimizer maximizes profit, where profit is the difference between total revenue and overall cost. Total revenue is calculated as the sum of the revenue of all products sold to market.

If the total cost of a finished product (comprising production, inventory holding, and transportation costs, and the cost of all components) is higher than its sales price, the optimizer chooses not to deliver and therefore not to produce or transport this product. Customer demand for such an unprofitable product remains unsatisfied.

This mode more influence on cost factors.

Delivery Maximization

In this mode, the aim is to determine the proportion of all customer demands that can be satisfied without taking into account the profitability of each product, but respecting all constraints in the supply chain.

Order series based planning.

The optimizer balances orders to maximize the profit and to minimize the overall cost of the generated plan.

For more information, see Optimization Parameters.

In both scenarios, you need to understand how optimizer consider cost factors in consideration. I would suggest running the optimizer with SAP standard cost parameters, later you can change the parameters and test based on your requirement.

Best Regards,

Lingaiah

[mkorndoerfer]

Hello Oliver,

Can you please clarify what do you mean by "The ratio of these costs to each other plays a decisive role."?

Regarding the approach of creating a cost model for Optimizer, we don't have any documentation explicit to cost modeling, but you may refer to our SAP Help Portal Creating a Supply Plan (Planner) for more information about a supply model; to Time-Series-Based Supply Planning Optimizer and TS-Based Supply Optimizer for information about Optimizer and its configuration; and lastly to the post IBP for Supply Optimizer: the mathematics behind made by Optimizer developer, Carsten Schumm. He explains Optimizer logic, different variables and constraints, as well as tips.

Please let me know if you seeking fore something else.

Best regards,
Matheus

[OliverA41]

Hi Lingaiah, hi Matheus,

thanks for the response. It is clear, that I have to understand, how the optimizer is working.

My idea was, that I have a excel sheet, to support me during the customizing.

Regards

Oliver