Optimizer is not considering product storage cost

Hi All,
After SNP Optimizer (lnr) completed Pln Ord are getting generated without considering 'prod storage cost'.
For example: If for certain FC is created on 10th of March, the pln ords r getting generated on 2nd of march...though the 'prod storage cost' are maintained in both the location (plant, customer). And the stock transfer is also happening early.
Please help.
Thanks,
Satyajit.

Hi
Remember that the optimisation profile is not just a case of the effects of one parameter (unless you set a cost profile with all other parameters at 0). I would check the costs associated with the other items you have, for example is there a safety stock cost and setting in place, what is the difference in transportation costs versus storage costs etc etc.
It may well be that another cost, means it is cheaper to ignore the storage costs differential in your case and make the product earlier.
Also, you need to consider the "Bucket Offset" factor for both transportation and production, unfortunately, no matter what you set it to the Optimiser will always take a value of 1.00 for scheduling of order creation, in other words availability at the start of the bucket. See OSS Note 434197 which has a good explainantion of the bucket offset in a PDF file and also has some related notes for it:
[Note 434197 - The Bucket Offset|https://websmp230.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=434197&nlang=EN&smpsrv=https%3a%2f%2fwebsmp202%2esap-ag%2ede]
Oh, and as Sanjog says whilst a product is in transport it has no storage costs so may be cheaper to move it earlier and incur no storage for that period. However this behaviour can be changed by a COPT10 optimisation parameter but you will have to speak to SAP themselves to get the details of that one I'm afraid.
Regards
Ian

Similar Messages

Optimizer to not consider Disrtibution Demand (Planned) with SS "SZ"

Hi Experts,
We have one challanging requirement where we do not want to consider "Disrtibution Demand (Planned)" with safety stock method "SZ" in Optimization runs.
How can we achive this?
Thanks in advance...
Regards
Sujay

Hi Sujay,
Sorry but I am still not quite sure what your requirement is...
Do you want to ignore the distribution demand from what?
What do you mean by "the result will be doulbing"?
Please explain in details you scenario.
Do you want to ignore completely this demand (e.g the optimiser does not see this demand at all, so this demand does not reduce stock?)
Or do you want to ignore the demand from the safety stock calculation?
If it is the first case, then I am really struggling to understand the objective.
If it is the second case, then there is a solution, but it involves extra parameters (GLOBALSAFETYMETHOD) so I will suggest to do it under the guidance of a optimiser expert.
Actually I suggest you to get in contact with SAP optimiser expert to help you; they will be able to review your design and help you with the configuration, test and so on...
Thanks and Regards
Julien

Target sost calculation not considered Current cost estimate in KKBC_ORD

Hi All,
We have an case wherein it observed that target cost calculation on SFG is wrong
in KKBC_ORD where system does not considered the current cost estimate.
We have all the necessayry customisation in place for Target cost version 0 for current cost estimate.
Below is detailsed case.
1 Process Order created in Dec 2011
2 Price Released to Mat master on 01.01.2012
3 Goods movement,Operation confirmad Material Issues, FG qty delivered @ std cost 0n 04.01.2012
4 Order Technically completed (TECO)
5 KKS1/KKS2 will be done at month end.
We know that In Process order, after deliver of FG the target cost on FG is not getting calculated,target cost will be updated only after calculating variance. it does
not calculate after delivery of finished goods, On Execution of KKS1/KKS2 variance will be calculated the target cost on FG and will be updated.
In process order (COR3 --> Cost analysis) Target cost ,Actual cost and Planned cost are calculated based on the following:
Total Plan Cost = Std Cost the material required to Produce X Planned Qty of the required material
Target Cost = Std Cost the material planned to Produce X Std Qty of material required to produce, for Produced Actual Qty
Actual Cost = Std Cost the material planned to Produce X Actual Qty of material consumed, for Produced Actual Qty
The variance is calculated on SFG and assemblies based on the difference between actual and target cost in KKBC_ORD. During creation of process order, the plan cost
will be updated with the valid standard cost upon the creation.
The target cost on SFG and Assemblies is only generated when there is good receipt from production order into inventory.
The target cost is generated using the valid / recent costing run for the correspondence SFG in KKBc_ORD.
All other target costs showed in COR3 (Menu Go to > Costs > Analysis) or KKBC_ORD before doing KKS1/2 is only statistical- However in our case Traget cost calculated
on SFG in KKBC_ORD not relevant with current cost estimate.
However Actual cost and Planned cost Calculated correctly.
Actual Cost= Current Standard costof the materilal(5.624,88)X Actual Qty (13.693)=77.021,48
Planned cost= Std Cost the material required to Produce (6.572,12) X Planned Qty (12.415)= 81.592,87
However Target cost is not considering the current cost estimate;It should be - Current Standard cost of the materilal(5.624,88)X Target Qty(13.958,124)=78512.07.
But Errorneously Target cost is showing 67.383,59 which causing unfavorable variance to standard.
It should be 78512.07-77.021,48= 1490.59 favourable var to standard in KKBC_ORD.
Any help,suggestion and input would be highly appreciated.
Thanks with Regards
Subrata

hi
target cost is your standard cost* actual confirmed quantity, not the standard quantity required
the variance calculated will be always the actual debit to the production order- actual credit of the production order
your actual credit for the process order is std cost* actual quantity delivered to the inventory= Current Standard costof the materilal(5.624,88)X Actual Qty (13.693)=77.021,48
actual debit to the process order is total actual cost which you can see in COR3 report .
By the way for which period you have calculated variance, target cost will be calculated based on that months standard cost
krishna

Optimizer not considering first 5buckets of fixed receipts elements

Hi,
I am running SCM-Deployment optimizer.I am facing issue like optimizer is not considering five buckets of fixed receipts.Need your help on this.

Hi
is it possible for you to check the values in pull deployment horizon, push deployment horizon and SNP checking horizon in the location product master (tab page SNP2). If you want the deployment optimizer to consider these values, they must have a value of > 0.
Amol

MRP not considering STO as demand

Hi,
When I run MRP, it is not considering the Storage location STO (SLOC to SLOC) as the demand.
here is the scenario in detial.
Material 1, MRP1 : MRP type V1 Reorder point 10, MRP 4 MRP indicator, SP proc key 20, Reorder point 50, Repl qty 25
STO created for 30. MRP run. ORD DS as -30 and available qty as 20. At this stage I expected a Pur req because the stock fell below reorder point
Material 2, MRP1 : MRP type PD Reorder point 0, MRP 4 MRP indicator, SP proc key 20, Reorder point 50, Repl qty 25
Same thing observed in this case also.
Bottom line STO (SLOC to SLOC) it is not considering as demand.
Please let me know the options that I have and what i am missing.
Thanks
Srini

The problem is solved.
I have made a change to the MRP type.
In the config, Under Additional requirements in Reorder point Planning, I have selected all the check boxes. For the current requirement, Order Reservation and Release Ord stock transfer are sufficient.
After transporting the values, It worked as expected. It considered, STO as well as reservations as demand.
PS: Initially it did not work after the transport. I went into the Material in the change mode and touched and saved it. It is working fine
Thanks
Srini

Optimizer not considering Means of transport cost

Hi,
I m working on SCM 7.0. I would like to choose source location based on some priority. I m mapping this scenario by maintaining means of transportation cost in T-lane. But when I am running optimizer, optimizer is choosing random source and also in log its not showing the MoT cost incurred after planning stock transfer.
Am I missing some setting?
Best regards,
Vaibhav

Hi Vaibhav,
Which optimization method are you using "Linear" or "Discrete " ?
There is a good documenttation for these at URL below:
http://help.sap.com/saphelp_scm70/helpdata/en/21/186b398c15ef59e10000000a114084/frameset.htm
I hope this will help.
Regards
Datta

Product interchangeability not considering stock of old product

Testing Product interchangeability with Location as MRP areas
created chain with new item as succssor product and old as the presecessor with DIRECTION --->FORWARD
After Running OPTIMIZER with Both the products and all Locations , OPTIMIZER is ordering new item and not the old item even though there is huge stock on hand of the old item.
please let me know if the optimizer will select new product irrespective of the old stock on hand.

Hi,
Product A is to be superseded by product B in location C.
There is no remaining stock of product A at location C. If demand is received for product A, the heuristic would transfer the demand to product B.
However, the optimizer checks whether there is any stock of product A in other locations of the model.
For instance, if there is still sufficient stock at location D, the optimizer checks the costs for transferring the stock of product A from location D to location C. If this is the most cost-effective solution (because storage costs at D are higher than the costs for transporting to C, for example), the optimizer plans the stock transfer from D to C. The demand for product A is then covered by the transferred stock.
Request you to check in your case whether this is the case.
Note: The optimizer does not calculate costs for interchanging products at the same location.
Thanks,
nandha

CN41N and S_ALR_87013533 report not showing Production order planned cost

Hi Experts,
I am having issue to get total planned production order values in my CN41N or S_ALR_87013533 cost report. I am facing 2 issues :
1. CN41N repoet does not show individual material cost planned in BOM.
2. CN41N report and S_ALR87013533 report does not show total value but only picking fixed value.
Example :
1. CN41N report :
Above screenshot shows no values in Project plan cost & Order cost column but it shows total cost as a lumpsum on top for project. I need to know how can i get material cost populated here for Project Valuated stock material?
2. S_ALR_87013533
This report shows Total Cost of BOM as 1 line under Material Procurement activity similar to CN41N report. Also Order value is picking from Fixed cost from planned order and total cost is added on top. How can i get Total cost picked from production order?
Is there any Setting in PS config which allow me to pick the detail production order plan cost in both report under planned cost.
Thanks in advance.
Ashish

Hi Ashish,
I doubt whether Item level reporting in S_ALR... (hierarchy report) is possible or not because I haven't seen item level cost in them only the lump-sum cost because they are summarized at cost object level itself. Navigation path are there which we use to go into details of cost.
Please check the following links:
https://scn.sap.com/thread/1743833
(In the above thread,focus on Mr. Mohamed Rafi comment.)
http://scn.sap.com/thread/3530080
http://scn.sap.com/thread/1311820
Order cost plan in report CN41N
Display of plan cost.,&nbsp;CN41N&nbsp;|&nbsp;ABAP,&nbsp;SAP,&nbsp;benX AG,&nbsp;benXBrain,&…
Just an additional pointer ,have a look on your costing variant and variation variant settings for material section.
Regards
Saurabh

STOCK OF FINISHED PRODUCT BY PIR NOT CONSIDERING WHILE TAKING MRP RUN

DEAR SAPGURUS,
I have finished product stock of 50 nos through planned independent requairement. now i am creating sales order for finished product but mrp run generate the planned order for finished product. I dont have planned order for finished product because material already have stock. what can i do please give solution.
thanks.
Regards
Atul

Hi Atul,
Please describe your problem better, it's not easy to understand...
Strategy 10 is net reqirement planning:
- SAP considers only PIRs as requirements, SOs are not considered
- SAP considers stock levels
- requirements should be LSF (check in MD04)
If you input sales order SAP won't create PldOrd for it. If you have stock and you want to create more to fulfil you SO, you have to input PIR accordingly and run MRP.
Please clarify your problem...in a way that we may understand it.
http://help.sap.com/saphelp_47x200/helpdata/en/60/9ea1536fbd11d191820000e8a5f6e6/frameset.htm
http://help.sap.com/saphelp_47x200/helpdata/en/e0/71bb199c9f11d191920000e8a5f6e6/frameset.htm
Thanks,
Csaba

In-house production time not considered in scheduling

i have a material, with an in-house production time of 7. requirements date is today, May 23. as a sap standard, using backward scheduling, it shall see that the start day lies in the past, and should switch to forward scheduling, with May 23 as the start date, and may 30 as the finish date. however, the system only proposes a finish date of may 27. why is the system behaving this way?

Hi,
Please let us explain, where u have carried out scheduling ie during the MRP or in Production order.
I hope ur asking about Production order scheduling , inthat case system will not consider the Inhouse production time. Because lead time scheduling is carried in production order.
Scheduling will be done for routing times not for In-house production time.
Pradeep

LTP consider production version and not consider selection id for routing

Dear guru.
I run mrp long term planning for a material.
The material have a production version linked to a specific bom and routing.
In trx OPU5 I have defined that the planning scenario consider a specific selection id for routing , this routing is different from the routing of production version.
The result is that for this material ltp donu2019t consider any routing and no evaluation activity is possible.
Do you know a solution in order that for LTP the system donu2019t consider production version and instead only consider OPU5 settings ?
Thanks for your interesting.

Dear CONS SAP,
Create a new planning scenario in T Code MS31 and then maintain the scheduling parameters for this planning scenario and
assign this selection Id and then execute and check.
Check and revert
Regards
Mangalraj.S

Production Order Costing

Hi Team,
I do not have routing for my finished goods. I have maintained in OPJG the default operation for my order type. In Control key the check box "Cost" is not activated. In OPJH, i have assigned the settlement profile as PP01.
With this condition, the CO consultant is doing customizing for "product costing" and he is getting some error related to routing.
During product costing, routing should not be considered since i have not created "Routing" for my finished goods. I have only default operation which is defined in OPJG. How to control the "Routing" check during costing? Any configuration settings?
Below screen shot displays the "Master Data" details of my production order.
Thanks

Hi Sugan,
If you maintain default operation with control key where cost is not activated then there will not be any planned labor cost or actual labor cost on the order for that particular operation since you do not want to cost.
I believe error you are getting while running cost estimate. During cost estimate BOM and Routing both are considered to derive the material and labor cost. If you do not want to consider the labor cost ( ie; from Routing) during cost estimate do as already suggested by expert Anupam so that error will not come.
Thanks & Regards,
Ramagiri

Item no does not have a Variable Cost on the Cost Detail screen

Hi,
Item no does not have a Variable Cost on the Cost Detail screen. If you use the Product Cost Model, it does have a variable cost. We need to determine the reason for this nonccost. Any idea of what would be the reason is.
Thanks,

Hi Friends,
I, my self resolved the issue. by considering the following 3 rd strategy in
For Activity Type/Processes: Considered 3rd strategy as below:
Activity Types/Processes: 1 plan Price for the Period, 6 Most Up-to-date Plan Price
and 2 Plan Price as Average of All Fiscal Year Periods.
Now it has been resolved.
Thanks all.
Now it is closed.
Vemula

Indicator: Storage costs per day

Hi,
In the SNP Optimiser input logs, if you go to ET- LOCMAT (Location Products), there is a 5th column Ind: Storage Costs Per Day.
Where do you set this indicator?
Nitin Thatte

Hi
In the Optimiser Profile itself there is a setting that either "penalises" you for the storage cost per bucket or per each day within the bucket.
It depends on your system as to exactly where it is, for example in SCM 5.0 it is on the "Model Params" tab under the section "Bucket Length", the settings you want is "Average Stock on Hand"
Not very intuative I know, but it will then set that indicator in ET_ARCMAT for you.
Regards
Ian

GR Cost not updating as Target Cost for process orders

Dear SAPians,
We are facing an issue in Target Vs Actual cost reporting for process orders. We are creating a process order after cost estimate of that material and doing the confirmations for activity cost. After that, GR has been done for the finished goods of that process order. That GR entry is updating the Actuals values but not updating the Target cost. When I am checking the standard report KKBC_ORD, I am getting the following figures.
Cost Elemnt Text     |     Target Cost     |     Actual Cost     |     Target Vs Act
Inventory Chnge FG     |     0     |     1,472,205.60-     |     1,472,205.60-
Packing Matrl Cons.     |     1,148,142.37     |     1,252,752.68     |     104,610.31
Raw Material Cons.     |     60,463.91     |     50,688.29     |     224.38
Semi-Fin Matrl Cns.     |     181,934.68     |     367,959.56     |     186,024.88
Labour Cost Activity     |     39,735.36     |     39,862.80     |     127.44
Machine Cst Activty     |     41,611.75     |     43,153.01     |     1,541.26
That 'Inventory Change FG' entry is showing the GR posting updating actuals and not target cost. This is causing huge difference in target vs actual cost that will affect the profit and loss figures ultimately.
What am I missing here? What should I do to update the GR amount in Target cost as well.
Shirazi

Dear,
Target Cost on Production Order or Process Order is shown only when Variance is Calculated.
So please calculate the Variance, system will show the Total Target Cost.
Br,Vivek

Optimizer is not considering product storage cost

Similar Messages

Maybe you are looking for