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Order Fulfillment Using GOP

Order Fulfillment Using GOP

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Published by Ramesh Poshala
Order Fulfillment Using GOP
Order Fulfillment Using GOP

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Published by: Ramesh Poshala on May 23, 2013
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Enhanced Order Fulfillment using Oracle Global Order Promising

Navneet Goel
Development Manager Oracle Corporation

Traditional Approach
Customers Suppliers
Tier 2

Multi-step planning processes, high latency, limited collaboration

Tier 1

• Response 1:
Maintain Excess Inventory

• Response 2:
Marketing Forecast Distribution Plans Production Manufacturing Plans Plans

Reserve Production Capacity

• Response 3:
Sales Forecast

Expedite Everything!

Mfg Forecast
Demand Planning Process

t = weeks
Supply Planning Process

Supply Chain Built on Inventory

A Better Way

Move to a More Competitive Model
Customers Suppliers
Tier 2

Oracle’s APS: zero latency, real-time collaboration

Tier 1

Portal Collaborative Planning Process
Collaborative demand plan Automated exceptions

Collaborative supply plan Automated exceptions

• Enable closed loop
planning processes across your value chain

Marketing forecast

Single holistic plan

Automated exceptions

• Provide total supply chain

Sales forecast Mfg forecast Consensus forecast t = hours
Supply Planning Process

• Make better decisions • React immediately to
changes in supply chain

Demand Planning Process

Build your Supply Chain on Information not Inventory

• APS Overview/ Architecture • Oracle’s ATP flavors • Set up
– Profile Options – Key Concurrent Requests

• • • •

Core GOP features GOP Computation Diagnostics Q&A/ Feedback

APS Architecture
Trading partners Internal Users


Oracle ERP
Oracle ERP 10.7 Oracle ERP 11.0 Oracle ERP 11i

Order Promising Engine Analytical Workspaces A P I S




XML EDI Flat file

Advanced Planning

Legacy Systems

Oracle’s ATP Flavors
• Setup via profile “INV: Capable to Promise”
– ATP based on Collected Data (ODS)
• Single Level ATP • Supports simple supply chain

– ATP/CTP based on Planning Data (PDS)
• • • • Single Level ATP CTP across supply chain using Sourcing/BOM/Routings Based on ASCP plan in APS Supports complex supply chain model

Collection Based ATP (ODS)
• Single Level ATP in requested org/ Global ATP • Need to run “Data Collection”
– Complete – Net Change

• ATP Rule determines:
– Supply/Demand to be included – Infinite Supply Fence

• May use a Supply Schedule, e.g., MPS

Planning Based ATP (PDS)
• Promise orders based on:
– – – – – – Material availability Manufacturing capacity Supplier capacity End-Item/Component Substitution Product Family Infinite Supply Time Fence

• Manage commitments to key customers
– Re-schedule and re-sequence your backlog

Planning Based ATP (PDS)
• Global statement of availability
– All facilities, material, resources, and suppliers – Region-Based Sourcing – Summary Based ATP

• Allocate available supply
– By channel, customer, or product – Priority and stealing rules – Time phased

GOP Setup
• • • • Profile Options ATP Flag Setup Sourcing/ BOM/ Routings ATP Rule
– Time Fence – supply/demand sources (ODS)

• Plan Options • Request Date Type • Ship/Arrival Sets

Profile Options
 INV: Capable To Promise  INV: External ATP  MRP:ATP Assignment Set  MRP: Calculate Supply Demand  MRP:Include Substitute Components  MSC:ATP Assignment Set  MSC: ATP Debug Mode  MSC: Enable Allocated ATP  MSC: Class Hierarchy  MSC: ATP Allocation Method  MSC: Enable ATP Workflow  MSC: Enable ATP Summary Mode  MSC: Plan co-products

Concurrent Request/Set
• System Administrator Responsibility
– Gather Schema Statistics – Create APS Partitions

• OM Responsibility – For ODS ATP (no APS)
– ATP Data Collection – Load ATP Summary Based on Collected Data

Concurrent Request/Set
• Run from Advanced Supply Chain Planner Responsibility
– – – – – – Planning Data Collection Launch ASCP Plan Create ATP Partitions (Only during upgrade) ATP Post Plan Process Refresh Allocation Hierarchy Materialized View Analyze Plan Partitions

Core GOP Features

Global Availability - Example
Customer1, Site1 Requests Item A
Rank 1 Rank 2

A/Org1 (M1) Assignment Set
Type Item Item A SR SR-A

A/Org2 (M2)
Sourcing Rule(SR-A)
Type Org/Sup Percent Rank Transfer M1 100% Transfer M2 90% 1 2

Org M1 M2 Day10 80 90 Day11 85 95 Day12 Day13 90 100 100 110

ATP Request Info: Request Qty 100, Request Date Day10, Latest Acceptable Date Day12

ATP Result: Qty 100 from M2 on Day12

Global Availability
• Availability Information across warehouses • Best option based on
– Availability – Rank

• Sourcing via Region-based rules • Computes Delivery LT and Ship/Arrival Date • Supports calendar for
– Shipping – Receiving – Carrier/In-transit

Region Level Sourcing
• Multiple levels of Geographical Hierarchy • Region based Inter-Location Transit times/ ship methods for customer-site and shipping warehouse • Enable sourcing/ lead time calculation for new customers • Supports flexible hierarchical setup via assignment set/ sourcing rules • Profiles
– MRP: ATP Assignment Set – MSC: ATP Assignment Set

GOP with No Downtime (24X7 ATP)
• Zero downtime
– No downtime when underlying supply chain plan is refreshed – No SO is lost, automatically re-promise SO against new plan

• Open, reliable, and scalable
– – – – Engine runs inside the database, No memory models to load! Multi-threaded Integrated with OM, Quoting, iStore, etc. Easy integration with legacy systems

Capable to Promise (CTP) - Example
A (Customer 1, Site 1)
1 day lead-time 5 day lead-time

A (Org 1)

A (Org 2)

B (Org 1)

R1 (Org 1)

B (Org 2)

R2 (Org 2)

5 day lead-time

4 day lead-time

B (Supplier 1)

B (Supplier 2)

Capable to Promise (CTP)
• Increased order fill rate using extra manufacturing and supplier capacity • CTP finds availability using make/buy/transfer info by request date (Backward Scheduling) • Forward Scheduling involves look ahead CTP, determines when orders for items can be fulfilled • Recursive check against BOM

Allocated ATP
• Group/ Prioritize Customers per business need thru
– Demand Class – Customer Class Hierarchy

• Material may be allocated to these groupings using
– Pre-defined allocation rules – Forecast quantities as honored by ASCP Plan

• Stealing of supplies from lower priorities prior to CTP • Ensure target supply to key customers

Allocated ATP
• Manage commitments to key customers
• Allocate availability to more profitable channels

End-Item Substitution
• Improved demand fulfillment/ inventory utilization • Supports
– Single or Bi-directional Substitution, chaining – Time phased Substitution, substitution window – Rule Based/ Customer Specific substitution

• • • •

Availability of Requested vs. Substitute Item CTP for Requested vs. Substitute item Exception/ Workflow Notification for Item Substitution Stealing prior to Substitution with Allocated ATP

Product Family ATP
• 2 Flavors
– based on ATPable PF Item Only (Pre-11.5.10) – using member item within Aggregate Time Fence and PF item outside Aggregate Time Fence (11.5.10)

• Plan must contain PF Item as well • Forecasting may be done either for PF or member item • CTP will be done on member item, if needed, for timephased PF ATP • Supports Allocated ATP

Supplier Capacity
• Supplier Capacity may be checked during CTP
– defined in ASL – Infinite Capacity after last date in ASL

• Sourcing Rule/Assignment Set per ASCP Plan • Creates Planned Orders for Supplier-Site in ASCP Plan • Planned Orders may be released prior to next plan run

Resource Batching
• Batch process: Same work on multiple items for a pre-set amount of time by same resource simultaneously, like heat treatment, sand blasting, etc. • Resources are constrained by product of time and weight or volume, i.e., capacity multiplied by time. • Only for constrained plans with routings • Setup: – Enable batchable flag, Capacity UOM in ERP – Profile: “MSO: Global Batchable Flag” in APS

Summary Based ATP
• • • • Supports enhanced performance with accuracy Profile: “MSC: Enable ATP Summary Mode” Post-plan process generates summarized data Run Concurrent program periodically for incremental summary

GOP Computation
 Netting

Net Supply-Demand for a given day/time period Use surplus from past to cover existing shortage Use future surplus to cover existing shortage Carry over the availability Steal supplies from lower priority tiers for new demands

 Backward Consumption

 Forward Consumption

 Accumulation

 Stealing (for AATP)

GOP Computation
 Example
Supply Demand Net Qty Backward Forward Cum Qty D1 10 4 6 0 0 0 D2 10 18 (-8) (-2) 0 0 D3 10 6 4 4 2 2 D4 10 7 3 3 3 5


Pegging Info


Supply/Demand Details


ATP Period Info


Diagnostics – Setup
• • • • • • • Input Data Profile Options Item Attributes Regions/Zones Sourcing setup Lead Times Infinite Time Fence • ATPable Plan Info • BOM/ Routings • Allocation Method/ Rule/ Percentage/ Priority • Resource Batching • End Item Substitutes • Component Substitutes

Diagnostics – Debug/Trace File
• Set user profile (MSC: ATP Debug Mode) before invoking ATP/ Scheduling as:
– Functional issues: “Debug Only” – Performance: “DB Trace Only” or “Debug & DB Trace”

• Provide debug (session-<n>) or trace/tkprof file (from DB trace location) • Re-set profile to 'None' to avoid any performance issues

Questions/ Feedback


Reference - Acronyms
• Industry Standard
– ATP (Available To Promise) – GOP (Global Order Promising) – CTP (Capable To Promise) – PTO (Pick to Order) – CTO (Configure To Order) – ATO (Assemble To Order) – CTD (Capable To Deliver) – BOM (Bill of Materials) – BOR (Bill of Resources)

• Oracle Specific
– APS (Adv. Planning & Scheduling) – ASCP (Advance Supply Chain Plan) – ODS (Operational Data Store) – PDS (Planning Data Store) – LAD (Latest Acceptable Date) – AATP (Allocated ATP) – ATF (Aggregate Time Fence)

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