IBP Finite Heuristic enquiry

[former_member743161]

Is anyone able to tell me how I can get the IBP Supply Planner finite heuristic (FH) to consider consuming inventory at offsite storage locations? Currently the FH solution is deciding to produce more inventory at the manufacturing plant and is disregarding the vast amounts of inventory sitting at an offsite location. Ideally we would like the FH to take into account all offsite storage sites and thereby not producing excess product.

Hopefully there is some sort of configuration I can do to allow for this.

Thank you

Zoran

[former_member654033]

Hi,

I don't think its possible because it doesn't take inventory holding cost rate into account. (Only Optimizer can do this).

Workaround could be to bring all offshore location inventory also to main location (using CPIDS) so it gets considered in netting process as overall inventory that you have.

Thanks

Girish

[keyhani]

Hello,

when planning inventory target, the location products are processed ordered by BOM level. Fulfilling the inventory target of location products at higher BOM levels has a higher priority than fulfilling it for location products at lower BOM levels. The decision, whether to plan new production receipts or transport existing stock from other locations, depends on the SOS priorities. The SOS priorities are derived from the SOS cost rates as described in the official help.

The heuristic doesn't have a global view on the supply chain and cannot see that inventory exists at some location which could be transported. Whenever new supply must be planned (either to fulfill a primary demand or inventory target), the heuristic tries out the SOS options (including production/transport/procurement) sorted by their priorities. Taking this into account, you need to set the priorities/costs appropriately to achieve the desired results.

Kind regards,
Mohammad Keyhani