Professional Documents
Culture Documents
Agenda
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Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning
What is Inventory?
Stocking ,tracking and maintaining the level of different items like Raw material, Finished Goods, etc in an organization.
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Oracle Inventory enables users to satisfy a companys business needs, area such as: Defining part numbers Modeling organization structures Tracking perpetual inventory Maintaining accurate on-hand balances Planning material replenishments Forecasting anticipated demand
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External Systems
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Oracle Assets
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2 Each = 1 lb
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Category Grouping
Inventory Category Set Purchasing Category Set
Finished Good
Hardware
PC
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Move Goods
Inventory
Ship Goods
MRP
Order Entry
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Agenda
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Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning
The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.
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Set of Books
LE LE
LE LE
OU OU
OU OU IO IO
OU OU
IO IO
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IO IO
IO IO
IO IO
IO IO
Business Group
This is an Organization that represents the consolidated enterprise, a major division, or an operation company and has no accounting impact. The Business Group partitions Human Resources information and the Purchasing Approval Hierarchy. If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group.
Business Group
Set of Books
Legal Entity
OU
Inventory Organization
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Business Group
Set of Books
Legal Entity
OU
Inventory Organization
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GRE/Legal Entity The Legal Entity represents a legal company for which the user prepares fiscal or tax reports. Legal Entities are associated with a Set of Books. One or more Legal Entities may be associated with a single Set of Books, and multiple Legal Entities may be associated with a single Business Group.
Business Group
Set of Books
Legal Entity
OU
Inventory Organization
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Set of Books
Legal Entity
Inventory Organizations
An inventory organization is a facility in your enterprise where you store and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time. Inventory Organizations belong to an Operating Unit.
OU
Inventory Organization
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Organization
Subinventories
Locators
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Organizations
An inventory organization is a facility in your enterprise where you store and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semifinished goods, or finished goods for varying periods of time. A physical entity such as a manufacturing facility, warehouse, distribution center, or a branch office. A logical entity such as an item master organization, which you can use just to define items but no transactions. The item master organization is discussed in detail in the lesson titled Defining and Maintaining Items Fundamentals.
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Subinventory Subinventories are unique physical or logical separations of material inventory, such as raw material inventory, finished goods inventory, or defective goods inventory. In Oracle Inventory, all material within an organization is held in a subinventory. Therefore, you must define at least one subinventory. Locator You use locators to identify physical areas where you store inventory items. Item quantities can be tracked by locator. Items can also be restricted to specific locators
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Review Question
What are the 3 Cs in Set of Books? Currency Calendar Chart of Account
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Agenda
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Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning
Inventory Setup
Required Setup Steps
Step 1 2 3 4 5 6 7
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Activity Define Item Flexfield Define Item Categories Flexfield Define Item Catalog Group Flexfield Define Stock Locators Flexfield Define Account Aliases Flexfield Define Sales Orders Flexfield Define Organizations
Inventory Setup
Required Setup Steps
Step 8 9 10 11 12 13 14
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Activity Organization access Defining Intercompany Relations Define Unit of Measure Classes Define Subinventories Define Item Attribute Controls Define Categories Define Category Sets
Level * Organization Global Global Organization Global Either Level Either Level
Inventory Setup
Required Setup Steps
Step 15 16 17 18 19 Activity Define Default Category Sets Define Statuses Define Cost Types Define Accounting Periods Set Profile Options Level * Global Global Global Global Global
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Inventory Setup
Flexfield Definitions
* Refer System Administrator & AOL training for Flexfield set up
Flexfield Name
1 2 3
Table Name
Comment
It supports just one structure It supports only one structure This should be defined before defining items. There Can be multiple structures per instance Defined as Order Number, Order Type, and Order Source to make each transaction unique. Its defined before placing demand /reservations Used to capture more information about stock locators and items This should be configured before defining items. OE: Item Flexfield profile option should be set to specify the Item Flexfield structure that will be used for Oracle applications.
Sales Orders
MTL_SALES_ORDERS
Stock Locators
MTL_ITEM_LOCATIONS
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Inventory Setup
Profile Options
Oracle Inventory users use the Personal Profile Values window to set profile values only at the user level. System administrators use the System Profile Values window to set profile values at the site, application, responsibility, and user levels. Required profiles have no default; they require input from a user or an administrator. Optional profiles have defaults which may be accepted or manually overridden.
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Inventory Setup
These profiles are updateable at all levels:
Profile Option
INV: Allow Expense to Asset Transaction INV: Default Item Status INV: Default Primary Unit of Measure INV: Dynamic Precision Option INV: Inter-Organization Currency Conv INV: Item Master Flexfield INV: MinMax Reorder Approval
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Reqd No No No No No Yes No
Inventory Setup
These profiles are updateable at all levels:
Profile Option
INV: Proj Misc Trans Expenditure Type INV: RC Line Failure INV: Requisition Approval INV: Save Search Items INV: Updateable Customer Item INV: Updateable Item Name TP:INV: Cycle Count Approvals Form
Reqd No No No No No No No
Approved No No No
Concurrent Processing
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Inventory Setup
These profiles are updateable at all levels:
Profile Option
TP:INV: Cycle Count Entries Form
TP:INV: Enter Replenishment Count Form
Reqd No No No No No No No
Default
Concurrent Processing Concurrent Processing Online Processing Online Processing
Immediate Concurrent Processing
TP:INV: Inter-Organization Transfer Form TP:INV: Misc Issue and Receipt Form TP:INV: Transaction Processing Mode TP:INV: Transfer Between SubInv Form TP:INV: Update Average Cost Form
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Inventory Setup
These profiles are updateable at all levels:
Profile Option
TP:INV: Server Side Online Processing INV: CCEOI Commit Point INV: Override Negative Qty for Backflush INV: Order Transact Form INV: Purchasing by Revision INV: Debug Trace INV: Debug File (Include complete path)
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Default
Concurrent Processing
No Default No
Online Processing
Inventory Setup
Reqd No Yes No
Default No No Default No
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Inventory Setup
These profiles are updateable only at the Site level:
Profile Option
INV: Accounting Category Set INV: Capable to Promise INV: External ATP INV: Use Catalog Name in Item Desc. INV: Minimum Number of Quantity Trees INV: CCEOI Workers INV: Detect Truncation on UOM Conversn
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Inventory Setup
Organization Setup
Before using Oracle Inventory, one or more organizations need to be defined. Organizations represent distinct entities in a company and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices. Organizations can be classified and connected to model the overall enterprise structure. The classifications include: - Business Groups - Legal Entities (LE) / Government Reporting Entities (GRE) - Operating Units - Inventory Organizations
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Inventory Setup
Organization Setup
(N)> Inventory>Setup>Organizations>Locations
Flagged as global, locations are available to all Business Groups physical locations of Employees and Organizations. Locations are shared between Inventory, Purchasing and Human Resources. Each organization can be associated with only one location. One or more organizations can be associated with the same location
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Inventory Setup
Organization Setup
(N)>setup>Organizations> Organizations
organization classification is used to describe the general purpose of organization. Examples are Inventory Org, GRE / Legal Entity, and HR Organization. Inventory Organization classification is used for inventory management.
Organization location field links a location to an organization to a location. This is a must for Legal Entity organizations
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Inventory Setup
Organization Setup
(N)>setup>Organizations> Organizations
Link Between Organization & Legal entity/Set of Books & Operating Unit.
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Inventory Setup
Using an Item Master Organization
Item Master Organization is usually the first Inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. Items are entered in an item master organization and then assigned to be used in child organizations. Child Organization is an inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master.
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Inventory Setup
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Inventory Setup
(N)>setup>Organizations> Parameters
Organization Setup
This must be the first organization to be defined as this is a required field in parameters. Later it can be changed. There For forecasting, planning, availableto-promise analysis, or cycle counting, workday calendar must be defined. This calendar is entered in the parameters screen in order to be used by the above functions. When defining a calendar system assumes a workday pattern that includes all days, between the start and end dates unless specified.
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can be any number of Item masters in an instance but it is advised that there is only one item master unless absolutely necessary. Item master can be common across operating units, legal entity & SOB. It can be optionally common across business groups also. It is also advised that there are no transactions carried in an item master
Inventory Setup
Organization Setup
(N)>setup>Organizations> Parameters
Locator control option determines at which level the locator is controlled. Options are None, Pre specified, Dynamic & Controlled at subinventory
Decides Whether the inventory balance in the organization can go below zero. If enabled ,does allow the inventory to go below zero.
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Inventory Setup
Organization Setup
(N)>setup>Organizations> Parameters
Costing organization determines which is the costing organization for Determines the costing method used in the organization. Options are Standard costing, Average costing, FIFO & LIFO Valuation accounts for the organization. Once any transaction takes place in an organization ,these accounts cannot be changed in an Average
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the organization in question. However for an average costing organization the costing organization is the same organization i.e. the costs cannot be shared.
Indicate whether all transactions are posted in detail or summary to the general ledger.
costing scenario.
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Inventory Setup
Organization Setup
(N)>setup>Organizations> Parameters
Enforces unique lot numbers across items, if set. The options are Across items & None
option for lot number generation. It can be generated at item level, org level or User defined Can be generated at org level or at item level option for serial number uniqueness. Options are Within organization, Within inventory & items Across organizations
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Inventory Setup
Organization Access
This setup controls access to organizations based on the user responsibility assigned to a user by the system administrator. If implemented for one user responsibility, it is then required for all other user responsibilities accessing the same organization.
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Inventory Setup
Organization Setup
Inventory Organizations are made up of one or more subinventories which can be made up of one or more locators
Organization
Subinventory
Locator
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Inventory Setup
Subinventory set up
A subinventory is a physical or logical grouping of inventory, such as raw material, finished goods, defective material, or a freezer compartment. The subinventory is the primary place where items are physically stocked. A subinventory must be specified for every inventory transaction Subinventories can be further divided into areas designated as locators.
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Inventory Setup
Subinventory set up (N) INV> Setup>Organizations>Subinventories
Indicates whether to include items in this subinventory in ATP calculations. Indicates whether each transaction for this subinventory updates the quantity on hand for the subinventory Indicates whether to maintain Indicates whether to include this subinventory while performing available to reserve calculations.
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Inventory Setup
Subinventory set up (N) INV> Setup>Organizations>Subinventories
Can only be selected if locator control is set as Determined at subinventory level in the Organization Parameters window
Indicate whether the planning process uses the onhand balance of these subinventory items as available inventory
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indicates the priority with which items are picked from this subinventory, relative to another subinventory, where a given item resides.
Inventory Setup
Subinventory set up
These valuation accounts are used in a standard costing scenario. For average costing org, system picks up the accounts from org level
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Inventory Setup
Workday Calendar
Workday calendar can be defined both in Inventory and Bills of Material. It defines which days are ON within an organization and which shifts are available to be worked. The workday calendar is the Oracle term for a manufacturing calendar. The workday calendar is separate from the Oracle General Ledger calendar. Each organization references a workday calendar.
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Inventory Setup
Workday Calendar
workday calendar consists of a start date, and end date, and on and off days that follow one or more defined workday patterns. A workday calendar can also include shift information and exception dates, such as holidays/scheduled down time. Workday exceptions identify deviations to the workday calendar. Shift exceptions identify deviations for a shift. Note: Before using a calendar it must be built using tools>build option Attention: Shift exceptions take precedence over workday exceptions.
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Inventory Setup
Units of Measure
Units of measure (UOM) are defined for tracking/moving/storing & counting items. Each item defined in Inventory must have a primary UOM. Each transaction performed in Inventory must have a UOM associated with the transaction quantity and a conversion defined back to the primary UOM. Multiple related UOMs are grouped together in a class with a base unit of measure Inventory uses the base UOM to perform conversions between units of measure in each class and between two different unit of measure classes.
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Inventory Setup
Units of Measure
Perform the following steps to define multiple UOMs and set up conversions:
Define UOM classes Define multiple non base UOMs for each class Define intraclass conversions Define interclass conversions
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Inventory Setup
Units of Measure Classes
(N) Inventory>Setup>Units of Measure>Classes
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Inventory Setup
Units of Measure (UOM)
(N) Inventory>Setup>Units of Measure>Units of Measure
A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, each is a unit of measure used to specify the number of units of an item.
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Inventory Setup
Units of Measure Conversions
(N) Inventory>Setup>Units of Measure>Conversions
If items are transacted in UOM belonging to classes other than their primary UOM class, conversions between the base units of measure in different UOM classes must be defined
unit of measure conversion is a mathematical relationship between two different units of measure. For example, 10 Kilograms = 1 Each, or 2.2 pounds = 1 kilogram.
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Agenda
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Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning
Define UOMs
Create Templates
Define Catalogs
3 Define Items
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Defaults Value: Value of this attribute defaults when assigning the status to an item. Can be changed. Not Used: Use neither default nor status control. Sets Value: Value of this attribute defaults when assigning the status to an item. Once assigned the default cannot be changed.
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Transactable
Purchasable
Build in WIP
Work in Process
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BOM Allowed
Invoice Enabled
Receivables
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Outside Processing Item PTO Option Class Reference Item Supply Item
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This option should only be enabled for user defined category sets. Functional Category is assigned to category set from here. category sets cannot have same item with multiple categories within itself.
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Items
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Agenda
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Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning
Inventory Controls
Overview
With Inventory locator, revision, lot and serial number control can be implemented Flexibility: - Inventory controls are optional for all items. - any combination of the four controls (locator, revision, lot and serial number) for each item can be implemented.
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Inventory Controls
Locator setup
Locators are optional structures within subinventories. Locators are the third level in the enterprise structuring scheme of Oracle Inventory . Locators may represent rows, aisles, or bins in warehouses. Items can be received directly into and shipped items directly from locators.
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Inventory Controls
Locator setup
Indicates the priority for picking items from this locator relative to another Subinventory to which the locator belongs locator.
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Inventory Controls
Revision Control
A revision is a particular version of an item, bill of material, or routing. By using the Revision control option while defining items item quantities can be tracked by item revision. To do so a revision is a must for each material transaction. Revision control is enabled for items for which version changes or changes that are significant enough to track but are not affecting the function and feature of the item are tracked .
Revision
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Control item attribute cannot be changed when an item has quantity on hand.
Inventory Controls
Revision Control
When defining Revision numbers letters, numbers and characters such as A, A1, 2B, etc can be used. Letters are always in upper case and numbers may include decimals. To ensure that revisions sort properly, decimals should always be followed by a number. Revisions are sorted according to ASCII rules. Each revision must be greater than the previous revision. For example, revision 10 cannot be used after revision 9 because, according to ASCII sorting, 10 precedes 9.
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Inventory Controls
Lot Control
Inventory provides complete lot number support for inventory transactions. A lot identifies a specific batch of an item that is received and stored in an organization. Lot control is a technique for enforcing the use of lot numbers during material transactions, thus enabling the tracking of batches of items throughout their movement in and out of inventory. If Lot Control is turned on for an item, the lot number must be indicated to perform a transaction.
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Inventory Controls
Lot Control
Lot Control must be turned on at the item level. lot numbers must be assigned whenever items under lot control are received into inventory. An inventory receipt can be split in to several lots, as necessary. Quantities can be added to existing lot numbers. Inventory will generate default lot numbers by using the default lot number generation method which is configured in the Organization Parameters window during setup.
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Inventory Controls
Lot Control
Lot can have an expiration date by assigning a number of lot control shelf life days or by entering a lot expiration date. The expiration date controls the availability of the lot for transacting and planning purposes.
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Inventory Controls
Lot Control
An Expired Lot: is not considered as on-hand supply when performing minmax, reorder point or MRP planning calculations. cannot be reserved for a date beyond the expiration date. can be transacted and is included in on-hand quantities. is included in all inquiries and reports. is included in a cycle count and count entry and adjustments are allowed. is included in a physical inventory and tag entry and adjustments are allowed.
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Inventory Controls
Lot Control
Disabled Lots:
Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions.
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Inventory Controls
Lot Control
A Disabled Lot: is included in available to transact, available to promise and available to reserve calculations. is included as on-hand supply when performing min-max, reorder point or MRP planning calculations. is included as on-hand in all inquiries and reports, including inventory valuation reports. can be transacted with Inventory functions and the Transaction Open Interface. can be reserved.
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Inventory Controls
Serial Control
A serial number is an alphanumeric piece of information assigned to an individual unit of an item. A serialized unit is a combination of an item number and a serial number. Individual units of items can be tracked by using serial numbers. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. Serial numbers can be used to track items over which a very tight control is to be maintained. One serial number per unit of an item can be assigned
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Inventory Controls
Serial Control
Generating Serial Numbers Depending on how Serial Number Control is set at the Master Item level will determine how serial numbers are generated. If No Control is specified as the serial number control type, no serial number control will be enforced. If Predefined is specified as the serial number control type, serial numbers for that item must be predefined. If control At inventory receipt or At sales order issue, optionally serial numbers for the item can be predefined.
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Inventory Controls
Serial Control
Generating Serial Numbers Inventory uses the starting serial number prefix and the starting serial number specified in the Item screen . The process of generating serial numbers is done through a concurrent report. This does not assign numbers to units in inventory, it simply reserves serial numbers for an item, for later use.
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Agenda
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Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning
Move Orders
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nventory Transactions
A transaction type is the combination of a transaction source type and a transaction action. It is used to classify a particular transaction for reporting and querying purposes.
Transaction Source Type Transaction Action
Transaction Type
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System defined transaction type codes for different inventory transactions. Each transaction type is linked to source type and action
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Use user defined terminology to define transaction type. The transaction type can be only linked to pre seeded values of source type and action
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nventory Transactions
Miscellaneous Receipt
Subinventory Locator
Locator
Subinventory Transfer
Organization
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If you want to enter transaction line by serial number for serialized item check this box
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nventory Transactions
Initial loading of item on-hand quantities when you start implementing Oracle Inventory Scrapping items by issuing them to expense accounts denoting scrap Issuing items to individuals, departments, or projects Receiving items that were acquired by assorted means (without purchase orders) Entering adjustments and corrections to system quantities due to theft, vandalism, loss, shelf-life expiration, or inaccurate record keeping
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Lot or serial number can be entered if item is a serial controlled or Lot Controlled
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The type can be Subinventory transfer to transfer from one subinventory to another or any of the user defined transaction type for source inventory & action subinventory transfer
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Enter Quantity
We can transfer one or more items in a single transaction. We can also transfer partial quantities of the same item to different subinventories and locators in a single transaction. We can also transfer expense and asset items from one organization to another using in transit inventory
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Delhi Organization
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Enter FOB as receipt or shipment to identify who owns the inventory after shipment has been made
There are three options for transfer charge. Predefined % of transaction value. The % is maintained here. The other two options are requested % or requested value. In this case value is mentioned at the time of entering Inter ORG transaction
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Enter the accounts for transfer credit and PPV if destination organization uses standard cost
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nventory Transactions
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nventory Transactions
As transaction type in Inter ORG order was in transit shipment, the inventory is shown in transit after shipping
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Note: Receiving for Inter ORG orders will be covered as a part of receiving transactions
C ma yC n e tia o p n o fid n l
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C ma yC n e tia o p n o fid n l
nventory Transactions
Use the Receipt Header window to enter header information for all types of receipts.
Receipts
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Manually Generated Optional Approval Processing Automatically Generated Pre-approved Ready for Transaction Pre approved Print Pick Slip
Pick Ticket
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Quantity to be transferred
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Agenda
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Introduction to Oracle inventory management Inventory Enterprise Structure Inventory Setup Creating and Maintaining Items Inventory Controls Inventory Transactions Inventory Accuracy Control Inventory Planning
Update cycle-count items Schedule items to count Generate count requests Enter cycle counts Approve cycle counts
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C ma yC n e tia o p n o fid n l
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C ma yC n e tia o p n o fid n l
Criterion for categorizing your items in Organization. It can be based on current value or historical usage value Cost type to pick up the unit cost of items in compile set
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C ma yC n e tia o p n o fid n l
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C ma yC n e tia o p n o fid n l
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C ma yC n e tia o p n o fid n l
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C ma yC n e tia o p n o fid n l
Define Group name to link compile class and set of ABC Classes defined
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C ma yC n e tia o p n o fid n l
Give a priority to all classes. The class with lowest priority is assumed to have the highest rank.
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C ma yC n e tia o p n o fid n l
Choose the sequence value from ABC descending value report to assign a range of items to class
Shows % of total items and % of total value assigned to a specific class with in an Organization
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C ma yC n e tia o p n o fid n l
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ABC assignments generated automatically by assigning cut off sequence numbers for each class. If required classes can be changed manually
C ma yC n e tia o p n o fid n l
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C ma yC n e tia o p n o fid n l
Cycle counting to be allowed for serialized items or not. If allowed will there be multiple serial numbers per request or one serial number per request
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C ma yC n e tia o p n o fid n l
Use this option as re-initialization to upload items for the first time from ABC group. Make it to update to add new items added in ABC group to cycle count items
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C ma yC n e tia o p n o fid n l
Item specific quantity tolerance can be maintained here Cycle count classes and item generated from ABC initialization at the time of linking cycle count to ABC group
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C ma yC n e tia o p n o fid n l
Approve cycle count entries that are out of tolerance. The entries with variance with in tolerance will be approved by system.
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C ma yC n e tia o p n o fid n l
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C ma yC n e tia o p n o fid n l
Use this option when tags are generated outside oracle inventory Click snapshot to generate the snapshot of inventory on hand for count subinventories
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C ma yC n e tia o p n o fid n l
You can generate blank tags for stock points not recorded in your system
Generates a unique tag for each unique combination of item, sub inventory, locator, revision, lot, serial number
Starting tag number and in what order you want to increment to generate the next tag number
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C ma yC n e tia o p n o fid n l
Enter the quantity physically counted at specific location with in the warehouse
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C ma yC n e tia o p n o fid n l
You can void a tag if damaged or lost. If default tag is void it sets the inventory to zero for that SKU
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Account for passing transactions due to variance in system and counted quantity
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Inventory Planning
Planning methods:
Performing reorder-point planning Performing Min-Max planning Subinventory replenishment planning Creating and executing Kanban cards
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C ma yC n e tia o p n o fid n l
Inventory Planning
MIN MAX Planning
Min-max planning is a method of determining when and how much to order based on user-defined minimum and maximum inventory levels. In Oracle Inventory you can perform min-max planning at two levels: Organization: To perform organization-level min-max planning for an item, you must specify organization-level minimum and maximum quantities. Subinventory: To perform subinventory-level min-max planning for an item, you must specify subinventory-level minimum and maximum quantities.
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C ma yC n e tia o p n o fid n l
Inventory Planning
MIN MAX Planning
1 . 0 D e fin e P la n n in g a ttr ib u te s f o r M in - M a x p la n n e d it e m s a t O r g le v e l
A I t e m A v a ila b le q u a n t it y b e l o w M i n q u a n t it y ? No S to p Yes
No O rg M in - M a x P l a n n i n g a t O r g o r S u b i n v e n t o r y le v e l ? S u p p lie r
A u to R e p l e n is h m e n t?
Y es
M in - M a x r e p o r t
Buy
M ake or Buy ?
M ake
2 .0 R u n M in -M a x P la n n in g R e p o r t a t O r g le v e l
3 .0 D e fin e P la n n in g a tt rib u te s fo r M in M a x p la n n e d it e m s a t S u b In v le v e l
S o u rc e ?
S u p p lie r In te rn a l
7 .0 C re a te U n r e le a s e d J o b
4 .0 R u n M in - M a x P la n n in g R e p o r t a t S u b In v le v e l
5 .0 C re a te P u rc h a s e R e q u is itio n s 6 .1 C re a te In te r n a l R e q u is it io n s
6 .0 C re a te In te r n a l R e q u is itio n s
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C ma yC n e tia o p n o fid n l
Inventory Planning
MIN MAX Planning
Determine minimum and maximum quantities
Enter minimum quantity
Yes
No
Inventory Planning
The following equation represents when you should order: Quantity Available= Min QTY- on hand quantity + quantity on order If Quantity Available is>0, the order should be placed Order quantity = (maximum quantity) - [(on-hand quantity) + (quantity on order) ] You can constrain the order quantity by specifying the following order modifiers for an item: Fixed lot multiplier Minimum order quantity Maximum order quantity
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C ma yC n e tia o p n o fid n l
Inventory Planning
MIN MAX Planning
Enter item planning attributes. Define subinventorylevel min-max information (optional). Run the Min-max report.
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C ma yC n e tia o p n o fid n l
Inventory Planning
MIN MAX Planning
Set up the appropriate profile value for requisition approval. Select an Inventory Planning method.
Enter the following: Min-max minimum quantity Min-max maximum quantity Fixed-lot-size multiplier Minimum order quantity Maximum order quantity
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C ma yC n e tia o p n o fid n l
Inventory Planning
MIN MAX Planning
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C ma yC n e tia o p n o fid n l
Enter the source type as supplier if you want to generate purchase requisitions. Enter subinventory or organization if you want to generate move orders
Inventory Planning
MIN MAX Planning
Min Max Report
Planning level can be organization or subinventory. If it is subinventory the min max quantity should have been maintained at subinventory level
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C ma yC n e tia o p n o fid n l
Inventory Planning
MIN MAX Planning
If you dont want to generate orders keep the option as No. it will print report for all those items where quantity available is less than Min Quantity
What are the different sources of supply to be considered for calculation of quantity available
The program includes nettable subinventory as supply. In order to include non nettable subinventory make it yes
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C ma yC n e tia o p n o fid n l
Inventory Planning
Subinventory Replenishment
Kanban
Populate Requisition Interface Oracle Purchasing Processes Run Req. Import Create Purchase Requisition Create Purchase Order Oracle Order Entry Processes Create Internal Requisition Create Internal Order Run Order Import
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
Reorder-point planning is a method of determining the size and timing of item replenishment orders. Reorder-point planning uses the following pieces of information: Safety stock Replenishment lead time item demand Order cost Carrying cost
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
Quantity
Reorder Point
Safety Stock
Time
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
You can perform-reorder point planning for the entire organization. You can use Reorder-point planning for items under independent demand. You can specify Reorder-point planning as the inventory planning method when you define an item. You can use Reorder-point planning for items that you do not need to control very tightly and that are not very expensive to carry in inventory.
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
Inventory Planning
Reorder-point planning
Item Planning Attributes
Select Reorder-point as the inventory planning method. Enter a carrying cost percent.
Inventory Planning
Reorder-point planning
Enter Lead Times
Enter preprocessing lead time. Enter processing lead time.
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
Item Planning Attributes
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Inventory Planning
Reorder-point planning -Entering Safety Stock
You can select one of the following three safety stock calculation methods for each item: User-defined quantity You can enter safety stock quantities and the date for which each quantity is effective. You can update safety stock quantities that you previously entered or that Oracle Inventory calculated for you. User-defined percentage To use the user-defined percentage method, you must use the Reload Safety Stock window and specify the following information for the item: A forecast A safety stock percent
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Inventory Planning
Reorder-point planning -Entering Safety Stock
You can select one of the following three safety stock calculation methods for each item: Mean absolute deviation To calculate safety stock using this method, you submit a concurrent request using the Reload Safety Stock window. In this window, you must specify the following information: A forecast A service level percent safety stock = Z 1.25 (mean absolute deviation) where Z is the appropriate value from a table of standard normal distribution, corresponding to the service level. The mean absolute deviation is a measure of how the forecast demand deviates form the actual demand.
C ma yC n e tia o p n o fid n l
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Inventory Planning
Reorder-point planning
Entering Safety Stock- User Defined
Enter a default item if multiple entries are to be maintained for the same item
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
Entering Safety Stock
Method as MAD or safety stock %
Enter the forecast for MAD calculation If method is safety stock % enter safety stock %. F method is MAD enter service level
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
Forecast Item Demand
Define a forecast set for your forecasting scenario. With in your forecast set define your forecast name
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
Forecast Item Demand
Inventory Planning
Reorder-point planning
Reorder Point Program
Give your demand supply and supply cut off date. Till this date your forecast will be taken for reorder point calculation
Use this option as no if you dont want to generate requisitions and want to generate report for items will quantity less than reorder point
Enter the forecast set to be used for EOQ and reorder point calculation
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C ma yC n e tia o p n o fid n l
Inventory Planning
Reorder-point planning
Reorder Point Program
Mention what supply should be considered as availability for reorder point calculation
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C ma yC n e tia o p n o fid n l
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C ma yC n e tia o p n o fid n l