Value Chain Planning - EBS (MOSC)

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Optimaization Plan Profit issue

edited Jul 17, 2012 2:37AM in Value Chain Planning - EBS (MOSC) 1 commentAnswered
Dear AllHi

In the knowledge we have

 Here is how the numbers are used to determine MAX Plan Profit.
Selecting Plan Profit Objective has the net effect of asking the optimization engine to do a dynamic cost rollup for all planned items. All other optimization objectives use standard costs and do not dynamically calculate a rolled-up cost. The calculation for margin percentage objective is 

  •  Margin percentage = (Plan revenue) - (Plan cost)
  •  Plan revenue = {(Sales order line price) * (Sales order quantity)} + {(Item list price)* Item discount) * (Forecast quantity)

Plan revenue is calculated and summed up for all items with independent demand in all time buckets.

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