What is control costs in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: control costs

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Costs that control the behavior of the SNP optimizer to reach operational goals. Since the SNP optimizer always searches for the best value solution, the user can influence the behavior of the system by raising or lowering the control costs. Control costs can be, for example, penalty costs for no delivery. If the penalty costs are very high, the SNP optimizer searches for a solution where the product will, in any case, be delivered.

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• Key Concepts: 
  Control costs is a feature of SAP Supply Network Planning (SNP) that helps companies manage their supply chain costs. It enables companies to identify and analyze cost drivers, such as transportation costs, inventory costs, and production costs, and to develop strategies to reduce them. The feature also provides visibility into the cost structure of the supply chain, allowing companies to make informed decisions about their supply chain operations. 
  
  How to use it: 
  Control costs in SAP SNP can be used to identify cost drivers and develop strategies to reduce them. Companies can use the feature to analyze their supply chain costs and identify areas where they can reduce costs. They can also use the feature to develop strategies for optimizing their supply chain operations, such as reducing inventory levels or improving transportation efficiency. 
  
  Tips & Tricks: 
  When using control costs in SAP SNP, it is important to consider the long-term impact of any cost-saving strategies. Companies should also consider the potential impact of any changes on customer service levels and other aspects of the supply chain. 
  
  Related Information: 
  SAP Supply Network Planning (SNP) is a comprehensive solution for managing the supply chain. It provides features for planning, scheduling, and optimizing the supply chain, as well as features for controlling costs. Other features include demand planning, inventory optimization, and production planning.