TS Supply Optimizer Demand and Inventory Target Fulfillment calculation on business log

[eddyizaguirre3]

Hello IBP Optimizer community,

I have been trying unsuccessful to explain the fulfillment percentage and Missing demand numbers that appear in the business log of IBP after running an optimizer.

Since I couldn't really find this in the help, I always thought that the Demand Fulfillment and Inventory Target Fulfillment rate were simple calculations:

Demand Fulfillment Rate: CONSENSUSDEMAND/CONSTRAINEDDEMAND X 100

Inventory Target Fulfillment rate: INVENTORYTARGET/PROJECTEDINVENTORY X 100

But as you can see for the following example, If I compare for the same Planning horizon all the key figures with the results of the business logs, these numbers don't really match and for a reason unknown to me, the optimizer is taking a Huge Amount of Demand and Inventory Targets that are not in my input key figures/

These are my KF at the highest Attribute level (Material Type)

CONSENSUSDEMAND : 99,000,000

CONSTRAINEDDEMAND: 88,000,000

INVENTORYTARGET: 1,300,000

PROJECTEDINVENTORY: 500,00

I have made sure that all my costs are up to date and bigger than zero and I also made sure I don't have any Adjusted/Minimum receipts.

Three questions:

1. Have anyone have this issue before?
2. What are the input key figures that are making optimizer consider more demand than there is in my CONSENSUSDEMAND KF
3. How are Demand and Inventory target Fulfillment really calculated?

Thanks!

[carsten_schumm · Accepted solution]

Hello Eddy,

the computations in the optimizer are like your formulas:
sum of all delivered amounts / sum of all demands * 100
sum of all satisfied inventory targets / sum of all inventory targets * 100

But in case of subnetworks (as you seem to have it), the demands that are selected/created via the subnetwork border are included too. These amounts are most likely the difference in comparison to your computation.

Kind regards, Carsten

[former_member654033]

Hi Eddy,

Business log always shows correct information

Which UOM you are checking the numbers in planning view, optimizer log reports number in product Base UOM. Do you have 1:1 conversion with a common UOM if you are checking them at material type level otherwise it may be UOM conversion which is giving you wrong picture.

General Calculation that I do to match the same

1. First calculate absolute shortage (Plan - Actual)

2. Calculate % Shortage (Absolute/Plan)

Thanks

Girish

[eddyizaguirre3]

Hi Girish,

Thanks for the comment. To your question yes we do have a common 1:1 conversion target UOM with the Product Base UOM. That's exactly the one i'm comparing in here, my equation for comparison seems the same as yours.

Another question I had is what happens when you are optimizing only a subnetwork, does that Demand Fulfillment measure takes into consideration also the demand coming from another subnetwork?

Thanks

[former_member654033]

I have never used this scenario, for me subnetwork was always unique hence it was easy for me.