MAX On Hand Inventory per Location on Inventory Optimization for IBP

[former_member669723]

Our Customer-Faced locations have a restriction on Max On Hand Inventory Capacity due to their limited space to hold inventory.

The Global Configuration Parameter "Maximum Storage Capacity Constraints" lets me limit the On Hand Inventory at a Product/Location/Week level, but picture this example:

The IOMAXINVENTORY Key Figure for the Product A / Location 1 is 1000 units , and so it is for the product B, C, D. (All the products are the same size and lets not consider time for this example)

Also, the Max On Hand Inventory at Location 1 is 3000 units in total (A+B+C+D)

So, if when I run the simulation it determines that the optimal level of inventory for that location is 1000 units for each of the 4 products it will be violating my main constraint that is the Max On Hand Inventory al Location 1 of 3000 units in total.

Is there a way in which I can constraint the Max On Hand Inventory at a Location Level considering the grouping of all products?

[lingaiahvanam · Accepted solution]

Hi,

IOMAXINVENTORY Key Figure functionality will as you explained in the above example.

Please check the following suggestion to meet your requirements.

1. Create a new attribute as "PRDGROP" - Product group Onhand

2. Assing this attribute to Product, Location and ProductLocation master data types.

3. Create the planning level "PERPRDLOCPRDGROP"

4. Create new figures based on requirements at the PERPRDLOCPRDGROP planning level.

5. Copy/ DISSG operator to copy optimization output key figures.

6. Write calculations to add multiple inventories and identify the maximum stock levels at Location wise using the PRDGROP attribute.

7. Generate an alert if stock more than maximum inventory levels.

The above approach at a high level and not out of the box solution.

Another suggestion is to download the location products from the CPI-DS integration approach into an excel file. Write the macro to calculate the maximum stock levels.

Best Regards,

Lingaiah