What is objective function in SAP SCM-IBP-PLA - Planning Framework?

SAP Term: objective function

• Component: SCM-IBP-PLA

• Component Name: Planning Framework

• Description: An equation to be optimized given certain constraints and with variables that need to be minimized or maximized. In cost optimization, the objective function results in the sum of the costs of the various decisions implied.

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• Key Concepts: 
  Objective function is a mathematical expression used to define the goal of a planning process. In the SAP SCM-IBP-PLA Planning Framework, the objective function is used to define the desired outcome of a planning process, such as maximizing profits or minimizing costs. The objective function is used to determine the optimal solution for a given set of constraints. 
  
  How to use it: 
  The objective function is used to define the goal of a planning process. It is typically expressed as a mathematical expression that takes into account various factors such as cost, profit, and other constraints. The objective function is then used to determine the optimal solution for a given set of constraints. 
  
  Tips & Tricks: 
  When defining an objective function, it is important to consider all relevant factors and constraints. This will ensure that the optimal solution is determined accurately and efficiently. Additionally, it is important to ensure that the objective function is consistent with the overall goals of the organization. 
  
  Related Information: 
  The SAP SCM-IBP-PLA Planning Framework provides a comprehensive set of tools for optimizing planning processes. It includes features such as optimization algorithms, constraint-based optimization, and simulation capabilities. Additionally, it provides support for various types of objective functions, including linear programming and nonlinear programming.