Unit 9 - !

nventory Synchronization
9-1 Yantra Application Administration Yantra Company Confidential
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© 2002 Yantra Corporation. Proprietary & Confidential.
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Unit 9 - !nventory Synchronization
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Course Agenda
Unit 1 - !ntroduction
Unit 2 - !nfrastructure
Unit 3 - Presentation Framework
Unit + - The Participant Nodel
Unit 5 - Security and System Nanagement
Unit 6 - Alert Nanagement
Unit 7 - Process Definition
Unit 8 - Product Nanagement
Unit 9 - Inventory Synchronization
Unit 10 - Distributed Order Nanagement
Unit 11 - Payment Processing
Unit 12 - Logistics Nanagement
Unit 13 - Reverse Logistics
Unit 9 - !nventory Synchronization
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Yantra Inventory SynchronIzatIon
Global Inventory Synchronization
GIobaI, muIti-site inventory visibiIity
÷ InternaI and externaI Iocations
Deep "inventory" visibiIity
÷ Command and ControI of inventory
resources
÷ Views by "type" of suppIy and
demand
÷ Dynamic monitoring of net position
given demand
ReaI-time promising of inventory
÷ GIobaI ATP
÷ RuIes based AIIocations
÷ Time Sensitive Reservations
Event Management with proactive
Exceptions and Actions
View and Manage Inventory across Distributed SuppIy Chain
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- Key Capabilities -
Inventory SynchronIzatIon
GIobaI, muIti-site inventory visibiIity
· Ìnternal and external locations
· Ìn transit inventory control
Robust inventory controI
· Segmented control by "type¨ of supply and
demand
· Dynamic monitoring of net position given
demand
ReaI-time promising of inventory
· Global ATP
· Rules based Allocations
· Time Sensitive Reservations
Demand / SuppIy Synchronization
· Real-time monitoring of demand and
supply requirements
- Relevant Strategies -
Gain controI of distributed inventory
· Visibility & control across divisions &
systems
· Ìmprove spare parts management
Monitor suppIier inventory and WIP
· Ensure component availability
· Eliminate redundant stock
· Allocate to drop ship vendors
Outsourced inventory management
· Automate 3PL relationships
· Drop-ship suppliers
Vendor managed inventory programs
· Provide suppliers with real-time demand
· Continuous adjustment/optimization of
forecast and execution plan
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UnIt º: TopIcs
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
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UnIt º: DbjectIves
Natch inventory supply types to inventory demand
types
Calculate the allocation date and reservation date
for an order based on required ship date
Describe the implications of Hub vs. Enterprise
owned inventory
Calculate current and future inventory availability
for an item
Create ATP Rules that represent your business
needs
Nonitor absolute inventory levels and inventory
availability
After completing this unit, you should be able to:
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Inventory SynchronIzatIon
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
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SuppIy and 0emand
Supply is all inventory available for
fulfilling orders
!n stock, currently available inventory
Future, expected inventory
Demand is all orders placed and not yet
fulfilled
Reservations
Allocated orders
Future expected demand
Demands can be íulíilled only ií suííicient supply exists at the right time.
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SuppIy and 0emand LIfespan
Supply lifespan
Starts when inventory becomes known to
Yantra
Ends when inventory can no longer be sold
Demand lifespan
Starts when demand first placed in Yantra
Ends when customer no longer wantsfneeds
the items
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FuIfIIIIng 0emands
Yantra fulfills a demand only if:
1. Sufficient supply is available to fulfill the
demand
2. Lifespan of one or more supplies overlaps
the lifespan of the demand
Supply lifespan
Demand lifespan
Overlap
Note
\antra does not explicitly take any action at the end date oí a demand ,oíten called the Requested
Cancel Date`,. 1hereíore, ií the demand start date is beíore the end oí the supply liíespan, the demand
can be íulíilled.
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SuppIy and SaIes Drders
Status Supply Type Demand Type
Update Update
Created NfA OPEN_ORDER increases
Reserved NfA RSvD_ORDER increases
Backordered NfA BACKORDER increases
OPEN_ORDERfRSvD_ORDER
decreases
Released NfA ALLOCATED increases
OPEN_ORDERfRSvD_ORDER
decreases
Shipped ONHAND decreases ALLOCATED decreases
Order is associated with a Seller. Updates happen only if
Seller maintains inventory in Yantra.
lor sales orders using the order document:
· Demand increases when the order is created
· Demand type changes as the order mo·es though the íulíillment process
· Supply and demand decrease when the order ships.
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SuppIy and Purchase Drders
Status Supply Type Demand Type
Update Update
Created PO_PLACED increases OPEN_ORDER increases for
for Buyer Seller
Reserved PO_PLACED increases RSvD_ORDER increases for
for Buyer Seller
Backordered PO_BACKORDERED BACKORDER increases
increases for Buyer OPEN_ORDERfRSvD_ORDER
decreases for Seller
Released PO_RELEASED ALLOCATED increases
increases for Buyer for Seller
!NTRANS!T increases OPEN_ORDERfRSvD_ORDER
for Buyer decreases for Seller
Shipped ONHAND decreases ALLOCATED decreases
for Seller for Seller
Order is associated with both a Buyer and a Seller. Again, updates happen only ií Buyer and Seller
maintain in·entory in \antra. ,Note: ií only one maintains in·entory in \antra, updates happen íor that
organization only.,
lor purchase orders using the order document:
· Supply ,tracked íor Buyer, and demand ,tracked íor Seller, increase when the order is created
· Supply and demand types change as the order mo·es though the íulíillment process
· Seller supply and demand decrease when the order ships, Buyer supply increases
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SuppIy and PIanned Drders
Status Supply Type Demand Type
Update Update
Planned Order PLANNED_PO increases FORECAST increases
Created for Buyer for Seller
Being PLAN_NEGOT!ATED FORECAST_NEGOT!ATED
Negotiated increases for Buyer increases for Seller
Accepted F!RN_PLAN increases F!RN_FORECAST
for Buyer increases for Seller
Planned Order F!RN_PLAN decreases F!RN_FORECAST
Complete for Buyer decreases for Seller
Order is associated with both a Buyer and a
Seller. Updates happen only if organizations
maintain inventory in Yantra.
lor orders using the planned order document:
· Supply ,tracked íor Buyer, and demand ,tracked íor Seller, increase when the order is created
· Supply and demand types change as the order mo·es though the íulíillment process
· Seller supply and demand decrease when the order ships, Buyer supply increases
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SuppIy û 0emand
AssignedfUnassigned Demand
Assigned - Ship Node selected
Unassigned Types:
OPEN_ORDER
BACKORDER
Assigned Types:
ALLOCATED
RESERvED
RSRv_ORDER
SCHEDULED
Usage: Each bucket (AssignedfUnassigned) can be
filtered out of the availability calculations
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SuppIy û 0emand
Prioritization of Demand Types
Driven off a priority
Numeric values only (1, 2 and 3)
Hierarchy is ALLOCATED -> SCHEDULED ->
OPEN_ORDER
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Inventory SynchronIzatIon
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
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AvaIIabIe To PromIse (ATP)
Yantra recalculates available quantity for an item
at every inventory decision point
Reservation date for a line
Allocation date for a line
Ad hoc quantity inquiries
Yantra tries to match
supply to a demand
Nake the most efficient
use of current and
future inventory
Supply
Demand
Available 1o Promise ,A1P, is about making the most eííicient use oí in·entory so that items are not
set aside íor íuture orders when they could be used to íulíill more immediate demands.
Note
1he speciíic conditions around \antra`s determination oí which supplies can be matched to which
demands are go·erned by A1P Rules. 1he A1P Rules are coníigured by the application administrator.
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What Is 0rIvIng 0ate!
Driving Date:
Defined date to be used by the Schedule and
Release programs for performing their processing
Driving Date may be defined as
Delivery Date
OR
Ship Date
Set for a given Document Type
1he Required Ship Date is the date on which the order needs to lea·e the node. 1he Required
Delivery Date is the date on which the order needs to arri·e to the ship to address. \antra associates
the deíined dri·ing date at an order le·el when the order is initially created.
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Advance NotIfIcatIon û Lead TImes
Advance Notification Time
Amount of time required at the node to assemble
and ship the item
Delivery Lead Time
indicates the amount of time it takes to transport a
shipment from a ship node to a customer
Schedule Lead Time
Amount of time required to get supplies, if needed
Set a default to cover all items
Then can override Advance
Notification and Lead Times for
specific items
Ad·ance Notiíication 1ime ,also called Outbound Processing 1ime, and Lead 1ime are key in
calculating how much in·entory is a·ailable on what dates to íulíill customer orders.
· Ad·ance notiíication time is the amount oí time required to get the order line to the Seller and
shipped out írom the node.
· Lead time is the amount oí time required by the Seller to place a purchase order and then recei·e the
new supply at the node.
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0eIIvery Lead TIme
Delivery lead time is used to
determine when an order line
must be shipped based on
the requested delivery date
When calculating the delivery date: Ìf neither the ship date or delivery date are provided, the
ship date is defaulted to the current days date and the delivery date is defaulted to that date
+ delivery lead time. Ìf the ship date is provided but the delivery date is not, the delivery
date is defaulted to ship date + delivery lead time. Ìf the delivery date is provided but the
ship date is not, the ship date is defaulted to delivery date - delivery lead time.
Transit time is calculated as Delivery Lead Time+Distance Per Day (either from the
Distance Per Day for a select carrier service from the Logistics Business Rule entry).
Unit 9 - !nventory Synchronization
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ScheduIIng Lead TIme
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What Is ScheduIe 0ate!
Date that Schedule Agent selects node and
reserves inventory for an order
Soft reservation only
Schedule Date =
<Driving date> - <Scheduling Lead Time>
Earliest possible Schedule Date is the Current
Date
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What Is PeIease 0ate!
Date on which Release program releases the
order to the nodeforganization
Hard inventory reservation
Release Date =
<Required Ship Date> - <Advance Notification time>
OR
<Requested Delivery Date>-<Delivery Lead Time>-
<Advance Notification Time>
Earliest possible Release date is the Current Date
Because Ad·ance Notiíication 1ime can be stored at both the item or Ship Node le·el, whiche·er ·alue
leads to the earliest date, that is the date which will be used íor the calculation.
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Inventory TImeIIne
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Sep 1 Sep 10
Sep 20 Sep 25
Sep 30
OpenfRsrv
Order
Delivery Lead
Time
Select NodefSoft Reserve !nventory
Numerous Supply Types
Demand Type moved from ¨Open_Order"
or ¨Rsrv_Order" to ¨Scheduled"
Driving Date - Schd. Lead Time
Scheduling Rules
Release Order
¨On_Hand" Supply Type
Demand Type moved from ¨Scheduled" to
¨Allocated"
Driving Date - Adv. Not. Time
ATP Rules
(Driving Date determined by Document Type settings)
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Inventory SynchronIzatIon
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
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Inventory CIassIfIcatIons
All items fall into one of the following
categories
Neither Lot Controlled nor Time Sensitive
Lot Controlled
Time Sensitive (Perishable)
Both Lot Controlled and Time Sensitive
Note
1he terms time sensiti·e` and perishable` are used interchange ably within \antra`s in·entory
management system.
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What Is Lot ControI!
A lot is a group of associated units of an
item
Often based on common manufacturing dates
Nay or may not be associated with expiration
dates
Use lot control to track
where items from a
specific lot go
Usually used for recalls or
advisories
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Create Lot ControIIed Items
Define whether or not an
item is lot controlled on the
item attributes.
1he only step required to mark an item as being under lot control is to check the Lot Controlled` box
on the item attributes in Product Management.
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What Is PerIshabIIIty!
!tems that degrade over time have an
expiration date
The date after which items are unusable by the
customer
Who wants to receive a measles vaccine that expired
3 years ago?
Ship-by-date linked to expiration date
Last date items can be shipped
to still be useful to the Buyer
before expiration date passes
Yantra tracks ship-by-date
\antra keeps track oí the Ship-By-Date, not the expiration date, when dealing with time sensiti·e
in·entory. \antra cares only about what is the last possible date to get items shipped to Buyers, not how
long the items might be good once the Buyer recei·es the shipment.
Note
1he Ship-By-Date is tracked as a date only - time ,hour, minutes, etc, is not associated with the Ship-
By-Date.
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Create PerIshabIe Items
Define whether or not an
item is perishable on the item
attributes.
1he only step required to mark an item as being perishable is to check the 1ime Sensiti·e` box on the
item attributes in Product Management.
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SpecIfy 0efauIt SheIf LIfe
Define the shelf life of an item in the
Default Expiration Days of the item
attributes. Only used if Yantra has to
calculate the ship-by-date for the item.
Deíault Lxpiration Days` essentially reíers to the shelí liíe oí an item. It reíers to how long the item can
sit in the warehouse beíore it is no longer considered saleable. 1he number oí days in this íield is used
when adding time-sensiti·e in·entory but the Ship-By-Date is not pro·ided as an explicit input.
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LotlPerIshabIIIty ConstraInts
Yantra cannot control which ship-by-
date(s) are used to fulfill an order
Use instructions to request specific handling
Shipping node must be able to track ship-
by-date
Supported in Portal and some 3
rd
party
systems
!f order line shipped from more than one
ship-by-date, only one shown during
return creation
\ou cannot ask \antra to allocate írom a speciíic Ship-By-Date. \ou also cannot control whether or
not an order is split across diííerent Ship-By-Date.
Lxample
\ou place an order íor 10 items. At the warehouse, 5 oí these items are írom the Ship-By-Date
10,01,2002, and 15 írom the Ship-By-Date 01,01,2003. \antra will take 5 items írom Ship-By-
Date 10,01,2002 and 5 írom Ship-By-Date 01,01,2003, you cannot tell \antra to take the entire
order írom a single Ship-By-Date.
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Inventory SynchronIzatIon
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
Unit 9 - !nventory Synchronization
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What Is Inventory ConsoIIdatIon!
Defines which level inventory rolls up to
Hub or Enterprise?
Affects Yantra applications
Schedule and sourcing possibilities
Who has responsibility for maintaining
inventory data
!tem uniqueness across
organizations
Hub
Inv.@
Node 2
Inv.@
Node 3
Inv.@
Node 1
1he In·entory Consolidation and Catalog Model are interdependent.
· Ií you select Hub Inventory Consolidation, you must select Hub Catalog Model.
· Ií you select Lnterprise Inventory Consolidation, you must select Lnterprise Catalog Model.
· Ií using Participant Catalog Model, in·entory cannot be maintained within \antra. Nodes cannot
ha·e tracked in·entory ií using this catalog model.
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Inventory ConsoIIdatIon
!nventory held at the Hub level or
Enterprise level
Based on !nventory Consolidation rule
1he In·entory Consolidation and Catalog Model are interdependent.
· Ií you select Hub Inventory Consolidation you must select Hub Catalog Model.
· Ií you select Lnterprise Inventory Consolidation you must select Lnterprise Catalog Model.
· Ií you want to use Participant Catalog Model you cannot maintain in·entory within \antra.
Nodes cannot ha·e tracked in·entory ií you use this catalog model.
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- Can only be used when Inventory is
not maintained by Yantra. Allows all
organizations on system to maintain
their own items and catalog.
- Can only be used when Inventory
is not maintained by Yantra.
Allows all organizations on system
to maintain their own items and
catalog.
Participant
- Items and Inventory unique within
Enterprise.
- Organizations can include any node in
their inventory hub in their
distribution.
- Organizations can drop ship from any
node in their inventory hub.
- Organizations must choose one
Enterprise as their inventory
consolidator.
- Not possible if inventory is
maintained by Yantra
Enterprise
- Not possible if inventory is maintained
by Yantra.
- Items and Inventory unique across
the entire application.
- Allows organizations to include
any node in system in their
distribution.
- Allows organization to drop ship
from any node in the system.
Hub
Enterprise Hub
Inventory Concepts
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Hub Inventory ConsoIIdatIon
Hub
Enterprise 1 Enterprise 2
Seller 1 Seller 2 Seller 3
!n this scenario, the Hub
owns all the inventory.
Example: each Enterprise is a division
of a company, and inventory is
counted across all Enterprises.
lub-owned in·entory pro·ides the most ílexibility in terms oí how to schedule orders among nodes,
because the \antra schedule process is able to looks across all organizations in the entire lub to íind
a·ailable in·entory.
In this coníiguration
· Lach Seller can be associated with as many Lnterprises as needed, regardless oí whether or not the
Seller maintains in·entory within \antra.
· Item uniqueness is deíined by item ID,product class,unit oí measure.
· All transactions use the lub-deíined item ID.
· In·entory belonging to an organization is exposed to all other organizations within the lub.
· In·entory and a·ailability monitoring is done at the lub le·el.
· Item IDs must be unique across all organizations in the entire lub.
· Ií more than one Lnterprise sell the same item, the item must ha·e a diííerent item ID íor each
Lnterprise.
· Any organization participating in the lub can share nodes.
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EnterprIse Inventory ConsoIIdatIon
Hub
Enterprise 1 Enterprise 2
Seller 1 Seller 2 Seller 3
!n this scenario, each Enterprise
owns their own inventory.
Example: the Hub is a 3PL and each Enterprise
is a unique client company. !nventory is counted
separately for each Enterprise.
Lnterprise-owned in·entory íunctionality pro·ides restricted drop-shipping íor orders. 1he schedule
process looks across all organizations associated with the Lnterprise that owns the order, and that
Lnterprise only, íor a·ailable in·entory. Organizations not associated with the Lnterprise do not ha·e
·isibility into that Lnterprise`s in·entory a·ailability. 1he Primary Lnterprise selection on the
organization details indicates which Lnterprise acts as the in·entory consolidator íor that organization.
In this coníiguration
· Lach Seller can be associated with only one Lnterprise ií the Seller maintains in·entory in \antra.
1he Seller can participate in multiple Lnterprises ií it doesn`t maintain in·entory in \antra.
· Item uniqueness is deíined by organization,item ID,product class,unit oí measure.
· All transactions use the Lnterprise-deíined item ID.
· In·entory belonging to an organization is exposed to all other organizations in the same
Lnterprise, but not to organizations outside the Lnterprise.
· In·entory and a·ailability monitoring is done at the Lnterprise le·el.
· Item IDs must be unique within the Lnterprise and the organizations with which it participates,
but the item ID can be duplicated within other Lnterprises.
· Ií more than one Lnterprise sells the same item, the item must be coníigured separately íor each
Lnterprise.
· 1wo organizations participating in the same Lnterprise can share nodes.
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PrImary EnterprIse
The Primary Enterprise designates the
!nventory and Catalog consolidator if using
an Enterprise model for these functions.
Use the Lnterprises section to select which Lnterprises an organization participates in. 1his iníormation
is used to deíine some oí the Coníigurator drop-down selections and aííects the possible Buyer and
Seller organizations that can be used by that Lnterprise in \antra`s Order Lntry console.
lrom the selected Lnterprises, choose the Primary Lnterprise írom the drop-down list. 1his drop-
down list is populated only with those Lnterprises that the organization participates in. 1he primary
enterprise is used to identiíy the organization`s in·entory and catalog consolidator, ií the implementation
uses an Lnterprise-le·el In·entory Consolidation and Catalog Model.
Selecting the Primary Lnterprise is separate írom selecting the Administering Organization.
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Inventory VIsIbIIIty ScenarIos
|nventory 6onso|e
V|s|b|||ty:
A|| 0rgan|zat|ons see a||
demand and supp|y at
nodes w|th|n the|r
d|str|but|on or across a||
nodes w|th|n the|r
|nventory hub.
hub User (when |nventory
conso||dat|on |s at
Enterpr|se |eve|} sees
supp|y and demand by
enterpr|se.
Node users sees a||
supp|y and demand at
the|r node regard|ess of
owner.
hub
Enterpr|se
& |nventory
hub
0rgan|zat|on
Node
0rgan|zat|on
0rgan|zat|on
Node
Node
Node
Node
Node
Enterpr|se
& |nventory
hub
0rgan|zat|on
Node
Node
0rgan|zat|on
Node
Node
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0IstrIbutIon PuIe Set-up
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0IstrIbutIon
Organizations can:
include other organizations belonging to
a different inventory org in their distribution
rules.
create multiple distribution rules and
look up inventory based on any of these
rules.
specify distribution rule at line level to
determine ship nodefsource from
organization at allocation time.
specify the effective date range for
distribution rule setup.
Unit 9 - !nventory Synchronization
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0IstrIbutIon ChanneIs
Organization
Distribution
Rule
Ship Nodes within the Inventory
Organization
Selling organizations
maintaining Inventory external
to Yantra
Node Node Node
getATP find!nventory
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Inventory AvaIIabIIIty
Distribution Channels
ATP within Organization uses getATP AP!
getATP
By default no longer considers
unassigned demand
Key Attributes
ConsiderAllNodes - looks at all nodes for the inventory
consolidator
ConsiderUnassignedDemand - if set to Y factors in all
unassigned demand
!f ConsiderAllNodes is passed as Y,
ConsiderUnassignedDemand can not be passed
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Inventory AvaIIabIIIty
getATP
Unassigned Demand is considered only when:
ConsiderAllNodes is ¨Y"
or
ConsiderAllNodes is ¨N" and a valid Distribution rule is
passed
or
ConsiderUnassignedDemand is ¨Y"
Specific Requests for a Demand Type can be made
And correlated Supplies from !nv Considerations will be
picked
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Inventory ConsoIIdatIon
Distribution Channels
ATP within Organization
Ship Node
Specified
Dist Rule in
Input
Org Uses
Dist
Override Dist Flag
Passed (Global)
No
No Yes
ATP does not
consider unassigned demands
ATP does not
consider unassigned demands
ATP
consider unassigned demands
Yes
Yes
No
No
Yes
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Inventory ConsoIIdatIon
Distribution Channels
ATP external to Organization
Use find!nventory AP!
visibility to external sellers at node level
Org. must have !nventory Naintained Externally
box checked in Org. setup.
getATP does not consider this inventory
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Inventory ConsoIIdatIon
Distribution Channels
ATP external to Organization
Orgs can be shared across different inventory
consolidators
No reservations can be made against inventory
from these organizations
There is no communication informing the Seller
org of demand commitments promised by Yantra
!f an external org returns a valid supply at a node,
that node must be configured in Yantra for the
Release Agent to create a Ship Advice
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Inventory ConsoIIdatIon - API
getATP
Unassigned Demand is considered only when:
ConsiderAllNodes is ¨Y"
or
ConsiderAllNodes is ¨N" and a valid Distribution rule is
passed
or
ConsiderUnassignedDemand is ¨Y"
Specific Requests for a Demand Type can be made
And correlated Supplies from !nv Considerations will be
picked
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Inventory ConsoIIdatIon - API
fIndInventory
Provides inventory inquiry considering specified
constraints.
Organization
!tem !d
UON
Product Class
Required Quantity
Required Ship or Delivery Date range
Optional constraints are Node, Dist. Rule, Node Fill
¾, Optimization, User Exit.
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Inventory ConsoIIdatIon - API
fIndInventory
Optimize on the following constraints:
Inventory Availability
Distribution Rule filter
Fill ¾
Dates
Driving Date (Ship or Delivery)
Start and End dates
Dependencies
Allocation Rule !D (Geography, Ship Complete, etc)
Ship or Deliver together
Nodes - Receive and Ship
Considerations
Demand type matched to diff Supply Types
Optimization Type
Earliest Date, Fewest shipments OR Node priority
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Inventory ConsoIIdatIon - API
fIndInventory
Yields - One Suggested option and Nultiple
potential Options
Can take multiple items in a single call (for a kit)
Reminder: findInventory cannot factor in un-
promised demand that has no node assigned to it
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IC - User ExIt
getExternaIATP
!nvoked from the find!nventory AP! if the
inventory organization is setup as ¨externally kept
inventory".
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ATP DptIons
The ATP options screen uses
the findinventory AP! to return
options
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Inventory SynchronIzatIon
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
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AvaIIabIe To PromIse (ATP)
Yantra recalculates available quantity at
every inventory decision point
Builds virtual ATP table each time
For each required item
Tries to match a supply to
a demand
Uses logic
configured in ATP Rules
Nake the most efficient
use of current and
future inventory
Supply
Demand
In·entory decision points include reser·ation requests, allocation requests, and anytime you request A1P
iníormation.
A1P Rules try to make the most eííicient use oí in·entory so that items are not set aside íor íuture
orders when they could be used to íulíill more immediate demands. A single installation oí \antra may
ha·e diííerent A1P Rules so that each item can be used at its own best eííiciency.
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Tracked vs. InfInIte
!tems at a specific node are either Tracked or
Infinite.
Tracked
Infinite
Means.
Yantra tracks the exact inventory
amount for this item at this node.
Yantra does not track the exact
inventory amount for this item at
this node.
1he current and íuture in·entory íunctionality applies only ií the in·entory is 1racked. Ií in·entory at a
node is Infinite, that means \antra is not interested in knowing the exact in·entory le·el íor that item at
that node.
1he 1racked ·s. Iníinite attribute applies at the ship node le·el, not the global le·el.
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ConfIgure a Node for Tracked
Configure whether a node uses Tracked
or !nfinite inventory in the Node Details.
1he 1rack In·entory` ílag applies to all items stocked at this node.
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ATP PuIes - SuppIy and 0emand
Supply side attributes
Past Due Supply Days
Processing Time
Accumulation Days
Demand side attributes
Past Due Demand Days
Advance Notification
Time
Forward Consumption
Days
Backward Consumption
Days
Lach oí these attributes has a diííerent eííect on how \antra determines which supplies can be used to
íulíill which demands.
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0efauIt ATP PuIe
ATP Rules are
available as part of
the rule set. Define
the attributes of the
DEFAULT Rule here.
1o view the default A1P Rule
1. Select the Platíorm · Business Process · Business Rules menu item.
2. \ithin the Rule Set associated to the appropriate enterprise, select In·entory.
3. Click Details.
4. Go to the A1P Rules tab.
5. Select the DLlAUL1 rule.
6. Click Details.
1he Deíault A1P Rule is part oí the deíault Platíorm settings and allows you to íulíill orders without
adding in the complication oí A1P Rules, ií desired.
Note
\ou can modiíy the Deíault A1P Rule to reílect your standard business procedures, and then o·erride
with other A1P Rules íor speciíic items, ií required. \ou can also change the A1P Rule \antra uses by
deíault by selecting a new rule írom the Deíault A1P Rule drop-down list.
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ATP PuIes - Past 0ue SuppIy 0ays
How long do you wait for expected inventory
past its due date before removing it from the
supply?
Dec 1 Dec 10
Expected arrival Remove expected inventory from supply
9 days
Lxample
\ou place a purchase order íor 20 books to be stocked in your warehouse. \ou expect these books to
arri·e on December 1. \ou set the Past Due Supply Days on the A1P Rule to 9 days. Up to December
9, soít reser·ations can be made against the 20 books you expect. On December 10, ií the books ha·e
not yet arri·ed, you remo·e them írom the supply. Ií you ha·e an open orders or reser·ations against
that supply, you may ha·e a shortage oí supply and end up with backorders.
1he in·entory can still be recei·ed ií it e·entually arri·es, but the expected in·entory is no longer
considered when \antra dynamically calculates A1P.
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ATP PuIes - ProcessIng TIme
!nbound + Outbound processing (includes vAS)
Determines outer
limit of dynamic
ATP calculation
Does not affect
release date
Dec 1 Dec 11 Dec 12 Dec 16
Current date !tems arrive !tems ready to ship End of ATP
10 days - lead time 1 day - inbound
processing
+ days - outbound
processing
ATP Time Frame
Lxample
On December 1, a shipment oí monogram-able hand towels arri·es at the warehouse. It takes 1 day to
process this incoming in·entory and mo·e it to the appropriate storage areas so that the towels are
a·ailable íor picking. Once an order is placed íor a monogrammed hand towel, you need 4 days to
retrie·e the towel, períorm the monogramming, and ship the order. 1he total number oí days
encompassed by the processing time should include both the inbound and outbound processing time -
in this case, 5 days.
Note
VAS ~ Value Added Ser·ices, such as custom labeling or other personalization to meet a customer
need.
Lead time is an item attribute, but is not part oí the A1P Rules.
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ATP PuIes - AccumuIatIon 0ays
How many days into the future can current inventory be
considered for future demands?
Generally used only for high demand, high velocity items
!tems considered unavailable past the accumulation days
Jan 1 Jan 6
Today Last day items considered available
5 days
Points to remember
· Accumulation Days has some similarities to an expiration date íor non time sensiti·e items. 1his
íield should only be used íor high demand, high ·elocity items.
· \antra always counts the accumulation days írom current date`, not arri·al date oí the in·entory.
· Use Accumulation Days when you don`t want to tie up currently a·ailable in·entory íor íuture
demands
Lxample
1oday is January 1. \ou ha·e sets oí speakers in stock in the warehouse and no more scheduled to come
in. 1he Accumulation Days íor this item is 5 days. Any order created today must ha·e a ship date oí
January 6 or sooner to be matched to this supply. An order created with a ship date oí January ¯ would
not íind any a·ailable in·entory.
Next, assume no orders come in on January 1, and it is now January 2. Now, you still ha·e 5 sets oí
speakers and can íulíill any order created with a ship date oí January ¯ or sooner. So the same order you
could not íulíill yesterday ,because you were expecting a lot oí orders to come in with more immediate
demand dates, you can íulíill today.
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ATP PuIes - SuppIy SIde
Time Line
Current Date
Current Date
+ Lead Time
S
S = Supply
Past Due Supply Days
!tems due before then
are not considered in
ATP calculations
S
Lead Time
PO placed today will
arrive on this date
S
Accumulation Days
Yantra cannot match
items to orders
beyond this time
Processing Time
!nbound + outbound
time to calculate the
ATP time frame
Limit for ATP
calculations
Lxamples
Assume the íollowing:
Current Date ~ 1,1,2002
Lead 1ime ~ 30 days ,deíault deíined in system rules,
Past Due Supply Days ~ 5
Accumulation Days ~ 6
Processing 1ime ~ 5 days
· A1P 1ime Irame: current date - lead time - processing time ~ lebruary 6
· Lead 1ime: Ií a PO were placed today, in·entory should arri·e on lebruary 1.
· Past Due Supply Days: the supply due beíore December 26 is not included ií \antra does any A1P
calculations today
· Orders may be backordered on the allocation date ií no other in·entory is a·ailable ,in
general, orders will be backordered on the allocation date only ií something changed between
the soít reser·ation and allocation,
· Accumulation Days: supply due to arri·e January 5. 1his supply can be used only to íulíill orders
that will be allocated between January 5 ,assuming no processing time required, and January 11.
· Speaker example: accumulation days set to a small number. 1his ensures that any a·ailable
in·entory will only be used íor immediate orders and not held íor orders too íar into the
íuture
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ATP PuIes - Past 0ue 0emand 0ays
How long after the required ship date do you no
longer include a demand when calculating ATP?
Order is not cancelled, just not considered in ATP
Jan 31 Nar 1 Nar 3
Order created Required ship date No longer considered in ATP
2 days
Generally, Past Due Demand Days are used only ií an order has been held up íor some reason, such as
payment authorization íailure. 1he demand will still be processed by the allocation background program
,assuming it`s not leld`,, but the demand is not considered as part oí the A1P picture. Note that this
can aííect the reality oí your in·entory picture, so be careíul in how this is used.
1his means that supply is not tied to a demand that isn`t shipping when it could be used íor other
demands that are not past due.
Lxample
An order is created íor a out-oí-print book. 1he required ship date is March 1 and you set the Past Due
Demand Days to 2 days. 1his means that ií the order is not íulíilled by March 3, this demand is no
longer included when Platíorm calculates the a·ailable quantity íor a speciíic date. 1he order can still be
íulíilled ií in·entory is a·ailable at the time allocation is done, but is not included in the A1P
calculations.
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ATP PuIes - Advance NotIfIcatIon
How many days does the supplier need to
prepare the item for shipment?
Same as outbound processing time
Used to determine release date of an order
Jun 15 June 17 June 20
Order created release date Driving Date
3 days
Ad·ance Notiíication 1ime is not really related to A1P at all and is not currently used when building the
A1P picture. 1his ·alue is only used by the Schedule background program.
Lxample
\ou place an order íor a giít basket íor your sister`s birthday. \ou don`t want it shipped until two days
beíore her birthday on June 22 to ensure that it arri·es exactly on her birthday. 1he supplier needs three
days ad·ance notice so that the giít basket can be assembled, so \antra notiíies the supplier ,allocates
the order and sends the ship ad·ice, on June 1¯.
Note
Processing 1ime` is a supply side attribute used only to determine the time írame within with which
\antra calculates the A1P data. Ad·ance Notiíication 1ime` is a demand side attribute that determines
the allocation date.
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ATP PuIes - Forward ConsumptIon
!f not enough inventory today to fulfill a demand,
how many days into the future to look at supply?
Dec 1 Dec 15
Order created Last date supply can be considered for
No inventory available the order
1+ days
Lxample
An order is created on December 1 íor a popular children`s toy. 1he in·entory íor that toy is not
a·ailable on that day. \ou set the lorward Consumption Days to 14 days. 1hat means that you can look
up to 2 weeks into the íuture to determine whether or not the demand can be met. Any supply that
might become a·ailable aíter the 14 days is not considered. Ií no in·entory is a·ailable in the next 14
days, the order is backordered.
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ATP PuIes - ßackward ConsumptIon
How far into the past can you look to find
available inventory for an order?
!nventory not
available today
Usually related
to Accumulation
Days (supply
side)
Allows for
overbooking
Jan 1 Feb 10 Feb 20
Open order Supply arrives Release date
created No current inventory
BCD = 10 days
S
Accumulation
Days = 6
Lxample
An order is created on January 1 íor a giít, but because the required ship date is in the íuture, the
allocation date is not until lebruary 20 ,birthday giít,. No in·entory is a·ailable on January 1, but the
order is not backordered because the ship date is beyond the lead - processing time.
On lebruary 10, a supply oí the same item arri·es, but has an Accumulation Days attribute oí 6 ,you
expect a lot oí orders in a short amount oí time,. 1hereíore, the order to be allocated on lebruary 20
still isn`t matched to this supply. lowe·er, no other in·entory íor this same item arri·es beíore
lebruary 20, so there is still no current in·entory a·ailable when the time comes to allocate the order.
Assume that none oí the supply that arri·ed on lebruary 10 was matched to other demands, so on
lebruary 20, that supply is still sitting in the warehouse. Because Backward Consumption Days is 10,
\antra will take the demand on lebruary 20 and work backwards up to 10 days until it íinds a·ailable
in·entory. Because in·entory was a·ailable 6 days ago ,and that in·entory has not been taken by another
demand,, the Backward Consumption Days attribute allows \antra to match the demand to that order.
Backward Consumption Days must be greater than or equal to Accumulation Days to ensure an
o·erlap. 1his allows you to take the order, but not immediately tie up supply because you know that, ií
you scramble, you can get more in·entory in enough time e·en ií all you ha·e today ends up gone
beíore the allocation date. 1his is a means oí ´overbooking¨ orders ií you expect a certain percentage
oí cancellations.
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ATP PuIes - 0emand SIde
Time Line
Current Date
Current Date
+ Lead Time
D
D = Demand
Past Due Demand Days
Demand with required
ship date before then
are not considered in
ATP calculations
D
Limit for ATP
calculations
Backward Consumption Days
!f supply is not available on
this day, look into past this
# of days to find supply;
related to Accumulation Days
Forward Consumption Days
!f supply is not available on
this day, look into future this
# of days to find supply
D
Advance Notification Time
Time required for
outbound processing
Allocation
Date
Remember, Backward Consumption Days must be greater than or equal to Accumulation Days.
Lxamples
Assume the íollowing:
Current Date ~ 1,1,2002
Past Due Demand Days ~ 10
lorward Consumption Days ~ 3
Backward Consumption Days ~ 2
Ad·ance Notiíication 1ime ~ 3 days ,used to determine allocation date,
· Past Due Demand Days: demands that should ha·e shipped beíore December 21 are not included
when Console does the dynamic A1P calculations
· Dramatically late shipments ,because payment is not appro·ed, etc., should not continue to
tie up supply that could go to other orders
· Iorward Consumption Days: in·entory is not a·ailable today, so look at incoming in·entory until
January 4 that might be a·ailable.
· Backward Consumption Days: in·entory is not a·ailable today, so look at in·entory that was
a·ailable up until December 30 ,that was not matched to other orders since then,. Usually means the
Accumulation Days on the supply did not originally allow matching to this demand.
· Advance Notification 1ime: demand has a required ship date oí January 20. 1he ship ad·ice needs
to be sent to the supplier on January 1¯ ,the allocation date,.
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Supply Type Matches to These Demand Types
On_Hand Open_Order, Reserved, Rsvd_Order, Allocated,
Backorder
PO Open_Order, Reserved, Rsvd_Order, Backorder
PO_Placed Open_Order, Reserved, Rsvd_Order, Backorder
PO_Released Open_Order, Reserved, Rsvd_Order, Backorder
!ntransit Open_Order, Reserved, Rsvd_Order, Backorder
Firm_Plan Open_Order, Reserved
hatchIng SuppIy and 0emand for ATP
Order is associated with both a Buyer and a
Seller. Updates happen only if organizations
maintain inventory in Yantra.
lor each supply type, a speciíic list oí demand types can be matched to it íor the purposes oí calculating
the in·entory a·ailable to promise ,A1P, quantity.
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Create an ATP PuIe
Create new ATP Rules
within the appropriate rule
set to provide options for
item-specific overrides.
1he Deíault A1P Rule is used ií no other A1P Rule is attached to an item on the item attributes
coníigured in the catalog ,the A1P Rule used by deíault is determined on the A1P Rules tab in the
In·entory business rule,. \ou can create other A1P Rules to be used íor item-speciíic o·errides in the
A1P Rules section oí the rule set.
1o create an A1P Rule
1. Select the Platíorm · Business Process · Business Rules menu item.
2. \ithin the Rule Set associated to the appropriate Lnterprise, select In·entory.
3. Click Details.
4. Go to the A1P Rules tab.
5. Click Create New.
6. Lnter the Rule ID and Name.
¯. Lnter the appropriate number oí days íor each oí the rule details.
8. Click Sa·e in the A1P Rule Details window.
9. Click Sa·e in the In·entory Rules window.
Note
Use the ·alues írom the original Deíault rule set ,¯30 or 0, íor any Rule Detail you do not want to aííect
the A1P calculations.
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SeIect ATP PuIe for an Item
!n the item attributes, you can
override the system default ATP
Rule for a specific item.
1he only step required to o·erride the deíault A1P Rule íor a speciíic item is to select the appropriate
A1P Rule írom the A1P Rule` drop-down list on the item attributes.
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Inventory SynchronIzatIon
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
Unit 9 - !nventory Synchronization
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What Is Inventory Adjustment!
Positive Adjustment
Receive incoming inventory
Create record of expected future inventory
!nventory synchronization
Negative Adjustment
Shipment
Reservation
!nventory synchronization
1otal quantity can be negati·e - this represents that you may be recording an actual action and that
in·entory is out oí synch. \ou can use this occurrence to ílag an exception.
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Inventory Adjustment
!nventory levels are automatically adjusted
when:
Order line with the item ships
Return inspected using disposition code that restocks
inventory
Yantra WNS uploads inventory changes
!nventory levels are changed via a background
program (can be used with 3
rd
party systems)
Nanually adjust inventory via inventory console
New levels reflected in the inventory console
Reasons íor doing manual in·entory adjustments can include:
· Recei·ing in·entory
· Creating a purchase order
· Reconciling in·entory counts
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!f inventory updates are needed, two criteria must be met:
FIRST: At the Document Type Level, !nventory !nterfaces
Attribute must be defined appropriately
SECOND: At the Org Level
Attribute: !nv Naintained Flag
Value Effect on Updates Usage
Buy Only Buyer Supply records are created and maintained
Sell Only Seller Demand records are created and maintained
Both When new demand is created, both seller demand and
buyer supply are created
None When new demand is created, neither seller demand nor
buyer supply is created
Value Effect on Updates Usage
No Even if the Org creates demand OR owns supply, no
inventory updates are carried out
Yes-External External Hook for !nventory Availability is called valid for accessing external supply for a
seller. No implication on a Buyer
Yes-!nternal !nternal Updates for a Buyer and Seller Org are possible
Inventory Update
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FEFD
First Expired, First Out
Only relevant if Yantra needs to determine
which perishable inventory to use for an
inventory adjustment
Because ship-by-date not provided as input
1his is a business rule, so it applies to all items in the Lnterprise or lub using this rule set.
1here is no ílag on the item attributes to determine whether or not to use lLlO íor a speciíic item.
1his is a system-le·el attribute.
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UsIng FEFD - ExampIe
You order 5 dozen roses for Nom's 65
th
birthday.
Ship date is April 28 for a delivery date of April 29
Shipping node does not enter ship-by-date on shipment
confirmation
May 1 inventory reduced by 4 dozen
May 5 inventory reduced by 1 dozen
+ dozen roses
ship- by-date = Nay 1
7 dozen roses
ship- by-date = Nay 5
Ií the order instructions required that all 5 dozen roses come írom the same ship-by-date, the shipping
node user would ha·e to explicitly speciíy that all 5 dozen roses came írom the May 5 in·entory by
pro·iding the explicit ship-by-date as input to the adjustment request.
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When 0oes Yantra Use FEFD!
1. During inventory adjustment
2. !tem is time-sensitive (perishable)
!tem may or may not be lot controlled
3. Ship-by-date is not explicitly provided as
input to the adjustment request
+. FEFO System Rule is set to `Yes'
All of these statements must be
TRUE before FEFO comes into play
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Inventory SynchronIzatIon
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
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Inventory PeservatIons
5 notebooks
in stock
Use reservations to set aside a
certain quantity for customers.
2 set aside for
Gold customers
3 available for
everyone else
\ou can create reser·ations íor customers and use this to pro·ide oííers that may not be a·ailable to
other customers. lor example, Gold` customers may recei·e additional discounts that other customers
do not recei·e.
Note
Price ,including discounts, is not associated with items, but with orders. An in·entory reser·ation
simply sets aside a speciíic number oí items íor use by customers with access to that reser·ation.
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Drders û PeservatIons
2 set aside for
Gold customers
Order23S
1 Laptop
Gold
customer
Order23S
1 Laptop
Gold
customer
1 still available
for other Gold
customers
Reserve !nventory for Order
1he reser·ation to which an order belongs stays with the order throughout the order process. lowe·er,
ií an order is backordered, it is returned to the general pool oí orders and loses its association with the
reser·ation.
Note: Draít Orders do not aííect reser·ations.
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Inventory SynchronIzatIon
Supply and Demand
!nventory Dates
Lot ControlfPerishability
!nventory Consolidation
Available to Promise
!nventory Adjustments
!nventory Reservations
!nventory Nonitoring
Unit 9 - !nventory Synchronization
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Inventory-PeIated honItors
Inventory Monitor watches on hand
supply for a node
Regardless of open demands
Availability Monitor watches available
quantity at a the inventory consolidator
level
Leftover supply after all
assigned demands are fulfilled
Two types of monitoring
Within lead time
Beyond lead time
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Inventory honItor
What is the !nventory Nonitor?
Scheduled background program
Watches inventory levels, regardless of
demand, as they rise and fall
Raises an exception
Scheduled to run on the
Application server by
the Hub only
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Inventory honItorIng PuIes
Use the action drop-down list to select an
action to associate with the inventory level.
1o configure inventory threshold rules
1. Select the Platíorm · Participant Model menu item.
2. On the Action Setup íor Minimum Quantity and Action Setup íor Maximum Quantity tabs, enter
the quantities íor this item.
3. Select one oí the coníigured actions in the Action íields. \ou can use the Search buttons to the right
oí the drop-down lists to search íor existing actions or create new actions.
4. Click Sa·e.
Note
In·entory quantity in terms oí the In·entory Monitor is calculated as íollows:
on hand shippable quantity - on hand held quantity - reser·ed quantity - allocated quantity
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AvaIIabIIIty honItor
What is the Availability Nonitor?
Scheduled background program
Watches available inventory
Available supply minus open demands
Raises an exception
Scheduled to run on the
Application server by
the Hub only
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ConfIgure ATP honItor PuIes
1he A1P Monitor Rules are part oí the business rules.
1o create an A1P monitor rule
1. Select the Platíorm · Business Process · Business Rules menu item.
2. \ithin the Rule Set associated to the appropriate Lnterprise, select In·entory.
3. Click Details.
4. Go to the A1P Monitor Rules tab.
5. Click Create New.
6. Lnter the A1P Monitor Rule ID and Name.
¯. Lnter the Max Monitoring Days.
8. On the \ithin Lead 1ime and Outside Lead 1ime tabs, enter the le·els and accompanying actions
íor monitoring a·ailability.
9. Click Sa·e in the A1P Monitor Rules Details window.
10. Click Sa·e in the In·entory Rules window.
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Set the honItorIng 0ays
Use Nax Nonitoring Days to
configure how far outside the lead
time to evaluate ATP.
365 Days
Nax Nonitoring Days
Today Today + 30 days
30 Days
Lead Time
Today + 365 days
335 Days Beyond
Lead Time
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AvaIIabIIIty WIthIn Lead TIme
April 1
Current Date
Lead Time = 10 days
D
SS S S
D
April 11
Current + Lead Time
Supply - 0 units April 1
10 units April 3
10 units more April +
10 units more April 6
10 units more April 8
Demand - 0 units April 1
5 units April 3
15 units more April 9
Evaluate available
quantity for every day
within the lead time
Date Available Qty
Apr 1 0
Apr 2 0
Apr 3 5
.
Apr 11 20
lor this example, assume supply and demand are both zero beíore April 1.
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AvaIIabIIIty DutsIde Lead TIme
April 1
Current Date
Lead Time
D
S S S S
D
April 11
Supply - 0 units April 11
10 units April 15
10 units more April 19
10 units more April 28
10 units more April 30
Demand - 0 units April 11
5 units April 17
15 units more April 19
10 units more April 29
Evaluate available
quantity for every day
beyond the lead time
Date Available Qty
.
Apr 17 5
Apr 18 5
Apr 19 0
.
Apr 30 10
Processing
Time
D
April 25
\ou coníigure the limit oí how íar outside the lead time to e·aluate in the A1P Monitor Rule
coníiguration.
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Attach ATP honItor PuIe to an Item
Assign the ATP Nonitor Rule at an
item level in the item attributes.
Note
A1P Monitor Rules are applied at an item-by-item le·el in the item attributes. 1here is no deíault A1P
Monitor Rule that applies íor all other items. \ou must explicitly assign a Rule to an item ií you wish the
a·ailability oí the item monitored.
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UnIt º: PevIew
How can you use ATP Rules to represent
your business needs?
What are some of the implications of using
Hub inventory consolidation instead of
Enterprise inventory consolidation?
How can you use Yantra to monitor your
inventory?
Unit 9 - !nventory Synchronization
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