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Max Stock Level - Use in SNP Optimizer

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In the Lot size tab of Mat Master, there is a field called MAX STOCK LEVEL. Its F1 reads such.

Use in Supply Network Planning (SNP)

In Supply Network Planning (SNP), you can use the maximum stock level to specify a product-specific upper stock bound for optimization-based planning. The SNP optimizer regards the upper stock bound as a soft constraint that can be violated subject to the calculation of penalty costs. These penalty costs are specified by the optimizer - they cannot be set in the master data"

  • How does SNP Optimizer results get influenced by this parameter 'Max Stock Level' in the Lot Size tab?
  • Does it put a ceiling on stock transfer requisition? Does it limit the planned orders quantity?
  • What are the dependencies wrt other parameters like min and max lot size?
  • What if BOTH product storage costs and Max Stock Level are maintained?
  • What does Upper Stock Bound mean given the Optimizer only creates planned orders (subject to constraints) considering stocks at the location?

Appreciate an example in a scenario where there are gradient penalties for non-delivery, procurement costs, storage costs, production costs and transportation costs maintained across all locations (production, DC, Customers) We use SNP Linear Optimizer and I am aware that SNP Optimizer Profile has the option to consider this as a 'Capacity' Constraint. We needed a transparent way of defining "Warehouse Storage Capacity" without having to use a storage resource.

Thanks

L

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