Resource Cost Values (cprao3120m000)

Use this session to specify the work center parameters that form the input for the optimization of lot sizes and order intervals in the Optimize Lot Sizing (cprao3200m000) session.

You can specify:

  • The time period for which you optimize the logistic parameters in the Start Date field and the Finish Date field.
  • The cost factors that influence the optimization procedure. Use the following fields to do so: - Overtime Percentage- Overtime Tariff Percentage- Risk Percentage by Day- Inventory Cost Percentage
  • The priority of the work center in the Priority Number field.

Highlight the work center for which LN must optimize the lot sizes, and select the Optimize Lot Sizing option from the appropriate menu to start the Optimize Lot Sizing (cprao3200m000) session.

Field Information

Scenario

The scenario for which you can define the work center parameters.

Plan Level

The plan level for which you want to specify the work center parameters.

Work Center

The work center for which you want to specify the parameters.

Start Date

The first date of the period for which LN performs the optimization.

Note: The demand data is maintained by plan period. The computation works best if you choose the start date of a plan period as the start date of the computation.
Finish Date

The last date of the period for which LN performs the optimization.

Note: The demand data is maintained by plan period. The computation works best if you choose the end date of a plan period as the end date of the computation.
Overtime Percentage

The percentage by which you allow LN to increase the available capacity through overtime.

Overtime Tariff Percentage

The percentage by which the operation rate is higher, if you use overtime.

Risk Percentage by Day

The chance, per day, that an item becomes obsolete.

Inventory Cost Percentage

The percentage used to calculate an estimate of the inventory carrying cost.

The inventory cost percentage is the cost per day to store an item, expressed as a percentage of the item standard cost.

You can estimate the daily inventory carrying cost with the following formula: IC = AIL * (IP/100) * C where IC = inventory carrying cost per day AIL = average inventory level IP = inventory cost percentage C = material value (unit cost)

Priority Number

The relative importance of a work center.

Enter a high number for the most important work centers.

If an item's production process involves multiple work centers, the optimized order parameters are based on the work center with the highest priority.