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What are key differences between pre- and post-optimization overrides?

mzhang-2
5-Regular Member

In PTC Inventory Optimization (IO) module, it can handle two types of overrides: pre- or post-optimization overrides. With pre-optimization, the overrides are inputs to core optimization computation, and therefore they will impact overall results, i.e., one SKU's override may change stock level for another SKU. On other hand, with post-optimization, the overrides are applied after core optimization computation, and therefore they will not impact the inventory mixes. Furthermore, a pre-optimization override for a SKU will remove completely all the constraints for the SKU. IO supports different kinds of overrides such as safety stock, ROP, or stock max (a.k.a, TSL).

Please note that overrides should be used as an exception when planners have a specific information or contractual obligation that cannot be reflected with data inputs and SKU constraints.