Optimizer/Heuristic is not considering Inventory Key Figures

[Former Member]

Hi gurus!

We would like to plan with S&OP considering Safety Stock restrictions, so we should work with “Inventory Target” Key figure. We have just two fast questions about that;

We load “Inventory Target” Key Figure and we launch Optimizer, but the system is not considering the Inventory Target in any case. We expect that Constrained Demand Qty or Dependent Demand Qty will increase when we increase the Inventory Target.

The same occurs with Inventory On Hand. Is not considered by the system.

After Optimizer Run without Inventory Key Figures:

Before Optimizer Run with Inventory Key Figures:

After Optimizer run:

We have the same problem with Heuristic Runs.

Many thanks in advance for your help!

[carsten_schumm · Accepted solution]

Hello Albert,

inventory has no impact on the dependent demand quantity or constrained demand quantity at that location. These demands are usually transports to other locations and customers. So the inventory only helps to satisfy them.

What is your sourcing for P0001 at Barcelona? If it is for example production you should see a lower production receipt if the inventory on hand is present.

Additionally please note that the optimizer will only respect the inventory target if you have also set an inventory target violation cost rate.

Hope this helps!

Kind regards,

Carsten