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APO_SNP_SNP105 - Define SNP Optimizer Profiles

You use the optimizer profile to define the optimization methods and to activate the constraints you want the SNP optimizer to take into account during its calculations. The activities for maintaining the optimizer profile are detailed below.

1. Create a new profile by choosing New Entries and then entering a profile name and description. Then choose Maintain Profile.
2. On the General Constraints tab page, first activate the constraints that you want the optimizer to consider independently from the chosen optimization methods, such as production capacity, storage capacity, and transportation capacity, or take the minimum PPM lot size or minimum transport lot size into account.
   
   On this tab page, also define whether you want the optimizer to take into account the safety stock. If you do, you can specify whether you want deviations from the safety stock to be taken into account as an absolute value or as a percentage during the penalty cost calculation.
   
   You are also able to define whether you want the optimizer to take into account the shelf life of products and if so, whether you want to continue using the product after it has expired (passed its shelf life expiration date) or whether you want to dispose of the product. If you want to continue using the product after its expiration date, you are also able to define whether you want the optimizer to use the procurement costs that have been defined for the location product (default setting) as penalty costs or whether you want it to use penalty costs that are not product-dependent (if you wish to use this option, enter an appropriate value).
3. If required, on the Discrete Constraints tab page, activate constraints that you want the optimizer to take into account for the discrete optimization method, such as integral (integer value) or minimum lot sizes for transportation or the production process model (PPM). A prerequisite for being able to make settings on this tab page, is that you have chosen the Discrete Optimization method in the header data.
   
   On this tab page you also have the option of defining whether you want the optimizer to take cross-period lot sizes into account as part of lot size planning.
4. On the Model Parameters tab page, specify whether you want the costs for the stock on hand to be calculated on the basis of the average stock on hand or on the basis of the stock on hand at the end of the bucket (period). You also define a bucket offset, which is a rounding limit for the availability of transported or produced products.
5. On the Solution Methods tab page, define runtime restrictions, if necessary, or activate a decomposition procedure to solve large optimization problems. For example, to reduce runtime, you can choose a suitable linear programming solution procedure, or you can specify that you first want the system to find a first solution by running the heuristic without linear programming (to find an initial feasible solution in less time) and that you then want it to check for possible improvements.
   
   For priority decomposition, define either a strict prioritization or a cost-based prioritization to specify whether you want the optimizer to use the demand priority or the costs priority as the determining factor when calculating the optimal solution. Strict prioritization should not be used together with the discrete optimization method. If you choose strict prioritization, you must also define the priority of the safety stock in relation to the other priority classes (such as customer demand).
   
   You use aggregated planning to limit the size of the problem by executing planning only at product group level or by limiting planning to specific products and locations.
   
   On this tab page, you are also able to define the optimization objective, which is a choice between either minimizing costs or maximizing profits.
6. On the Integration tab page, define parameters for the integration between SNP optimization and Production Planning and Detailed Scheduling (PP/DS). You can specify that you want the optimizer to consider the production horizon and the stock transfer horizon and also whether you want the optimizer to take into account dependent demand and distribution demand resulting from fixed orders as a hard constraint or a soft constraint. Soft constraints can be violated with resulting penalty costs. You can also choose whether you want the optimizer to take into account stock of PPM input products or source location products that have not been selected.
   
   Within lot size planning, you are also able to specify whether you want the optimizer to take into account the setup statuses planned in PP/DS.
7. On the Automatic Cost Generation tab page, define the business goals based on which the optimizer generates all the relevant control costs. If you want to use the automatic cost generation function, you have to set the corresponding indicator in the header data of the transaction.
8. On the Extended Settings tab page, specify the type of consistency check (if any) you want the system to make and whether you want the log data for an optimization run to be stored. On this tab page, you can also specify that you want the optimizer to ignore the time-based constraints you defined in interactive planning. You can define whether you want the optimizer to take the time-based upper bound for stock as a soft constraint or a pseudo-hard constraint; which means, whether they can be violated with incurring penalty costs.

You can also define how you want the optimizer to proceed if it cannot find a solution for a problem within the specified runtime. First, you can enter a runtime extension. If the optimizer cannot find a solution by the end of the extended runtime, other options are available (such as, simplification of the problem).

1. Save.

Note: Changes that you make to this profile in Customizing or in the current settings are transported into other systems. Changes that you make to the profile within interactive SNP planning are only local changes that effect the respective clients, which means that they are not transported into other systems.