Storage Cost Optimization During Campaign Optimization 

Use

During campaign optimization, you can optimize the schedule according to the storage costs that are associated with the early completion of orders or activities.

Storage costs are created when:

·        The availability date is earlier than the requirements date

·        The actual start or finish date for an activity is before the latest desired start or finish date for an activity

How much the early completion of a single order or a single activity costs, depends on the duration of the earliness and the storage cost price for the order product:

Duration of earliness (DE) =
Max {0, earliest requirements date – finish date/time for activity}

Storage cost weight for product i (SW_{i) =}
Storage cost price for product i x pegging quantity of product i

Storage costs for activity =
DE x max {0, S_{iÎoutput products} SW_i – S_{iÎinput products} SW_i }

You define the storage cost price in the product master (per base unit of measure and time unit). The system uses the duration of earliness in seconds to calculate the earliness costs.

Prerequisites

You strongly weighted the storage costs in the objective function for campaign optimization.

Features

If a receipt covers several requirements too early, the system uses the first requirement (that is, chronologically first) to calculate the earliness.

Example

The end of an activity is 6/6/2005. There are two requirements for this receipt with the requirement dates 6/14/2005 and 6/21/2005.

To calculate the earliness, the system uses the first requirement from 6/14/2005. The result is a duration of earliness of 8 days.