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Objective Members

This table is used within the Network Optimization experiment only. It is used to set members of the objective function by specifying coefficient for the existing Custom Constraints, Product flows, Product storages and Production constraints.

By default the table contains a number of predefined objectives. You can either modify them or create a custom objective.

The objective function is a mathematical equation that describes the output target of the experiment that corresponds to profit maximization.

The resulting value of the expressions will be available in the Objective Members statistics of the NO experiment results and you will be able to compare it to the experiment results.

Column Description

Name

By default the table contains a number of predefined objectives. You can either modify them or create a custom objective.

If you create a new objective, specify the name of the objective member here. It must be a meaningful name since it will be specified in the Objective Members statistics of the NO experiment results.

Expression

Expression — custom expression that will be processed during the experiment to later provide its resulting value in the Objective Members statistics of the NO experiment results. This expression consists of:

E.g. Coefficient2.65, Variable — Product Flows 1 = the specified flow will be multiplied by 2.65 and the resulting value will be specified in the Objective Members statistics of the NO experiment results.

Add to Objective

[Enabled by default] Defines if the expression is calculated and considered by the experiment in its results, or simply calculated to have its value stored in the Objective members statistics of the NO experiment.

  • Enabled — the expression affects the result of the experiment. Its value is available in the Objective members and Overall Stats statistics.
  • Disabled — the expression does not affect the result of the experiment. However, the experiment still calculates it and the received value is stored in the Objective members statistics of the NO experiment.

To completely exclude the expression from the experiment calculations, set its Inclusion type to Exclude.

Inclusion Type

Defines the status of the current record.

  • Include — if this status is set, the expression will be included into the experiment calculations.
  • Exclude — if set, the expression will be excluded from the experiment calculations. Its value will not be calculated. If selected, the table record will be grayed out to denote the current inclusion type. The table record stays editable.

Predefined objectives

  • Revenue — the total income generated by the supply chain from selling products to the customers.

    If you disable this objective the experiment will not be delivering the required result. The main goal of the experiment is profit maximization, which is impossible if you have no revenue data.

  • Penalties — the penalties paid for violating the specified constraints. For more information refer to the Constraints and Penalties article.
  • Transportation Cost — the total incurred transportation expenses within the supply chain. Transportation costs are defined in the Paths table.
  • Production Cost — the total amount of expenses incurred while manufacturing the demanded products. Production costs are defined in the Production table.
  • Supply Cost — the total cost of products obtained from the supplier by the DC and Factory objects. It is calculated as the Selling price * N of products obtained from the supplier, where:
    • Selling price — the price of selling one product unit (defined in the Selling price column of the Products table). The specified value can be overridden if the Price (per unit) is specified in the Sale Batch table.
    • N of products obtained from the supplier — the total number of products supplied by the supplier.
  • Initial Cost — the total cost of building / opening a facility / group of facilities. The value is defined in the Facility Expenses table.
  • Closing Cost — the total cost of closing a facility / group of facilities. The value is defined in the Facility Expenses table.
  • Other Cost — other total costs per day associated with the facility / group of facilities. The value is defined in the Facility Expenses table.
  • Carrying Cost — total expenses for storing the site inventory per day per m3. The value is defined in the Facility Expenses table.

    In case of the Network optimization experiment the objective considers only the remaining stock at the end of the period.

  • Inbound Processing Cost — the total cost of processing all incoming shipments by the receiving facility. Suppliers are not considered by this objective, since they have unlimited inventory and cannot receive shipments. The value is defined in the Processing Cost table.
  • Outbound Processing Cost — the total cost of processing all outgoing shipments by the supplying facility. The value is defined in the Processing Cost table.
  • CO2 Emission — the total amount of the emitted CO2 emissions. The CO2 emissions are produced by the:
    • Vehicles — CO2 emissions are defined in the Paths table. The parameters depend on the selected policy.
    • Facilities — CO2 emissions are defined in the CO2 from Facilities table.
    • Product processing — CO2 emissions are defined in the CO2 from Processing table.
  • Tariffs — the total amount of taxes paid by DC or Factory for transporting products between the two objects located in different countries. The taxes are defined in the Tariffs table. Learn how the data is shown in the statistics.
  • Customer Tariffs — the total amount of taxes paid by customers for receiving products from a different country. The taxes are defined in the Tariffs table. Learn how the data is shown in the statistics.
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