Minimum Customer Receipt KF for Optimizer

[navaid]

Hi Everyone,

I hope someone from the community would help me to understand the behavior of Optimizer (profit maximization) on Minimum Customer Receipt KF before creating a ticket for Support team.

We have a business scenario to fulfill Cons. Demand based on "Non Delivery Cost Rate" (that is working fine) and "Minimum Customer Receipt" to fulfill min. quantity of a customer, however when we maintain this input Min. Customer. receipt KF, optimizer run removes these quantities and just allocate the supply as per Non Delivery Cost Rate. and stock - is it a normal? as per my understanding Min Customer Receipt should be a hard constraint from optimizer point of view before even satisfying demand based on Late Delivery Cost Rate?

For example:

For a P1 and C1 my Cons. Demand is 100, 200, 300, 400, 500 (total = 1,500) in future buckets from CW45, 46, 47, 48 and 49 of 2021.with a Non Delivery Cost Rate of 1$ each of these above weeks

as well as Min. Customer Receipt of 50, 150, 250, 0, 550 (total 1,000) for CW45, 46, 47, 48 and 49 for same Product, Customer and Location..

From masterdata point of view, it is a simple one Customer, One Product and One Location based data for testing optimizer behavior.

Stock on Hand for the current week is 1,000 and it is projecting correctly until week 49.

after the run, Total Customer Receipt for Product, Customer is set to 100, 0 ,0, 400, 500 from week 45- 49

and Outbound Customer demand from the location is also set like above.

However the Min Customer Receipt KF is now null (optimizer has really removed this input KF values) - is it normal by optimizer to update Input KF? or I am missing some extra setting? It looks like here Optimizer has completely ignored Min. Customer Receipt KF and assigning available stock based on Non Delivery Cost rate and removed Min. Customer Receipts.

additional Information:

- have enabled KF change history, there is no detail of Original changes based on Change ID. It just shows 100% qty changed by S&OP Operator

- activated detail explanation on the S&OP Operator - but no information on getting more detail on this KF update.

Please share your knowledge if it has happened with any of you before?

Thanks in advance

[carsten_schumm · Accepted solution]

Hello Kamran,

the optimizer will respect KF MINCONSTRAINEDDEMAND. Looks like it is overwritten already before optimization. Do you have set an Merger Policy for Key Figures in the optimizer profile? If yes, such key-figures are updated.

See also Primary Parameters - SAP Help Portal.

Kind regards, Carsten

[navaid · Accepted solution]

Thanks Carsten, you were spot on and Merger Policy for KF sorted my problem.

Appriciate your help.