11i Inventory Management Fundamentals

Volume 2 - Student Guide

D16356GC20 Edition 2.0 D40250 January 2005

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Author Tyra Crockett, Yuvaraj Kandhaswamy Technical Contributors and Reviewers Jennifer Sherman, Alain Roth, Mary Hartman, Lata Sundar, Vanessa Graziano, April Nelson, Neeta Gera This book was published using:

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Table of Contents
11i Receipt to Issue ..........................................................................................................................................1-1 11i Receipt to Issue........................................................................................................................................1-2 Objectives ......................................................................................................................................................1-3 Agenda...........................................................................................................................................................1-4 Overview .......................................................................................................................................................1-5 Agenda...........................................................................................................................................................1-7 Receipt to Issue Life Cycle............................................................................................................................1-8 Agenda...........................................................................................................................................................1-10 Receiving Inventory ......................................................................................................................................1-11 Agenda...........................................................................................................................................................1-14 Transferring Inventory...................................................................................................................................1-15 Agenda...........................................................................................................................................................1-16 Issuing Inventory ...........................................................................................................................................1-17 Agenda...........................................................................................................................................................1-19 Oracle Inventory Application Integration.....................................................................................................1-20 Integration of Oracle Inventory to Financial Applications ...........................................................................1-22 Agenda...........................................................................................................................................................1-23 Summary........................................................................................................................................................1-24 11i Defining Inventory Organizations............................................................................................................2-1 11i Defining Inventory Organizations ...........................................................................................................2-2 Objective........................................................................................................................................................2-3 Agenda...........................................................................................................................................................2-4 Multi-Org Structure .......................................................................................................................................2-5 Organization Model.......................................................................................................................................2-6 Sample Organization Structure......................................................................................................................2-8 Enterprise Structure Considerations ..............................................................................................................2-10 Inventory Organizations ................................................................................................................................2-12 Inventory Organization Structure ..................................................................................................................2-13 Sample Inventory Organization.....................................................................................................................2-14 Agenda...........................................................................................................................................................2-15 Setting up Locations ......................................................................................................................................2-16 Defining Organizations..................................................................................................................................2-17 Organization Setup ........................................................................................................................................2-18 Additional Set Up Steps ................................................................................................................................2-20 Additional Organizational Setups..................................................................................................................2-21 Guided Demonstration: Creating an Inventory Organization ........................................................................2-22 Guided Demonstration - Setting Up Locations..........................................................................................2-23 Guided Demonstration - Setting Up Organizations ...................................................................................2-24 Agenda...........................................................................................................................................................2-27 Summary........................................................................................................................................................2-28 11i Overview of Defining and Maintaining Items .........................................................................................3-1 11i Overview of Defining and Maintaining Items .........................................................................................3-2 Objective........................................................................................................................................................3-3 Agenda...........................................................................................................................................................3-4 Items ..............................................................................................................................................................3-5 Agenda...........................................................................................................................................................3-6 Oracle Organization.......................................................................................................................................3-7 Inventory Organizations ................................................................................................................................3-8 Defining Organizations..................................................................................................................................3-9 Agenda...........................................................................................................................................................3-10 Defining Items in Item Master.......................................................................................................................3-11
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Steps to Setup, Define, and Maintain Items..................................................................................................3-12 Defining Items ...............................................................................................................................................3-13 Agenda...........................................................................................................................................................3-14 Item Attributes...............................................................................................................................................3-15 Item Statuses and Attributes ..........................................................................................................................3-16 Item Attribute Groups....................................................................................................................................3-17 Agenda...........................................................................................................................................................3-18 Creating Item Templates ...............................................................................................................................3-19 Enabling Attributes in a Template .................................................................................................................3-20 Agenda...........................................................................................................................................................3-21 Organization Assignment and Organization Item..........................................................................................3-22 Agenda...........................................................................................................................................................3-23 Deletion Constraints and Deletion Groups ....................................................................................................3-24 Agenda...........................................................................................................................................................3-25 Summary........................................................................................................................................................3-26 11i Defining and Maintaining Items Fundamentals .....................................................................................4-1 11i Defining and Maintaining Items Fundamentals.......................................................................................4-2 Objectives ......................................................................................................................................................4-3 Agenda...........................................................................................................................................................4-4 Unit of Measure .............................................................................................................................................4-5 Units of Measure ...........................................................................................................................................4-7 Use of Units of Measure ................................................................................................................................4-8 Defining UOM Classes..................................................................................................................................4-9 Units of Measure Conversions.......................................................................................................................4-10 Units of Measure Setup .................................................................................................................................4-11 Guided Demonstration Overview: Units of Measure ....................................................................................4-12 Guided Demonstration - Units of Measure................................................................................................4-13 Practice Overview: Units of Measure............................................................................................................4-15 Practice - Defining Units of Measure ........................................................................................................4-16 Solution – Defining Units of Measure .......................................................................................................4-18 Agenda...........................................................................................................................................................4-21 Item Statuses and Attributes ..........................................................................................................................4-22 Item Status .....................................................................................................................................................4-23 Status Attributes ............................................................................................................................................4-24 Item Attribute Relationships..........................................................................................................................4-25 Status Attribute Interdependencies ................................................................................................................4-26 Status Attributes and Functionality ...............................................................................................................4-29 Guided Demonstration Overview: Viewing Item Attributes .........................................................................4-31 Guided Demonstration - Viewing Item Attributes.....................................................................................4-32 Practice Overview: Viewing Item Attributes.................................................................................................4-33 Practice - Viewing Item Attributes ............................................................................................................4-34 Solution – Viewing Item Attributes...........................................................................................................4-35 Agenda...........................................................................................................................................................4-41 Defining the Item Master Organization .........................................................................................................4-42 Agenda...........................................................................................................................................................4-44 Defining Items ...............................................................................................................................................4-45 Steps to Setup, Define, and Maintain Items..................................................................................................4-46 Defining Items ...............................................................................................................................................4-47 Item Templates ..............................................................................................................................................4-48 Organization Assignment and Organization Item..........................................................................................4-49 Item Control Level.........................................................................................................................................4-50 Guided Demonstration: Defining Items.........................................................................................................4-52 Guided Demonstration - Define Item ........................................................................................................4-53 Practice Overview: Defining Items................................................................................................................4-54 Defining Items ...........................................................................................................................................4-55 Solution - Defining Items ..........................................................................................................................4-57

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11i Inventory Management Fundamentals Table of Contents ii

Agenda...........................................................................................................................................................4-61 Deletion Constraints ......................................................................................................................................4-62 Agenda...........................................................................................................................................................4-64 Profile Values ................................................................................................................................................4-65 Item Profile Options ......................................................................................................................................4-67 Agenda...........................................................................................................................................................4-69 Implementation Considerations .....................................................................................................................4-70 Agenda...........................................................................................................................................................4-71 Summary........................................................................................................................................................4-72 11i Inventory Controls Concepts....................................................................................................................5-1 11i Inventory Controls Concepts ...................................................................................................................5-2 Objectives ......................................................................................................................................................5-3 Agenda...........................................................................................................................................................5-4 Inventory Control Overview..........................................................................................................................5-5 Agenda...........................................................................................................................................................5-6 Subinventories Overview ..............................................................................................................................5-7 Agenda...........................................................................................................................................................5-8 Locator Control Overview.............................................................................................................................5-9 Agenda...........................................................................................................................................................5-10 Revision Control Overview ...........................................................................................................................5-11 Agenda...........................................................................................................................................................5-12 Lot Control Overview....................................................................................................................................5-13 Agenda...........................................................................................................................................................5-14 Serial Number Overview ...............................................................................................................................5-15 Agenda...........................................................................................................................................................5-16 Summary........................................................................................................................................................5-17 11i Inventory Controls Fundamentals ...........................................................................................................6-1 11i Inventory Controls Fundamentals............................................................................................................6-2 Objectives ......................................................................................................................................................6-3 Agenda...........................................................................................................................................................6-4 Inventory Control Overview..........................................................................................................................6-5 Agenda...........................................................................................................................................................6-6 Defining Subinventories ................................................................................................................................6-7 Subinventory-Locator Relationship...............................................................................................................6-8 Locator Structuring........................................................................................................................................6-10 Locator Control Reports ................................................................................................................................6-11 Guided Demonstration Overview: Defining Subinventories .........................................................................6-12 Guided Demonstration - Creating Subinventories .....................................................................................6-13 Practice Overview: Defining Subinventories.................................................................................................6-14 Practice - Creating Subinventories ............................................................................................................6-15 Solution - Creating Subinventories............................................................................................................6-16 Guided Demonstration Overview Setting Up Locator Control......................................................................6-20 Guided Demonstration - Locator Control ..................................................................................................6-21 Practice Overview Setting Up Locator Control .............................................................................................6-23 Practice - Setting Up Locator Control .......................................................................................................6-24 Solution – Setting Up Locator Control ......................................................................................................6-26 Agenda...........................................................................................................................................................6-33 Revision Control............................................................................................................................................6-34 Agenda...........................................................................................................................................................6-36 Lot Control ....................................................................................................................................................6-37 Lot Number Purging......................................................................................................................................6-38 Maintaining Lot Information .........................................................................................................................6-39 Cycle Counts Under Lot Control...................................................................................................................6-40 Physical Inventory Under Lot Control...........................................................................................................6-41 Disabled Lots.................................................................................................................................................6-42 Lot Control Reports .......................................................................................................................................6-43

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Agenda...........................................................................................................................................................6-44 Generating Serial Numbers............................................................................................................................6-45 Maintaining Serial Numbers..........................................................................................................................6-46 Serial Genealogy ...........................................................................................................................................6-47 Serial Number Control Reports .....................................................................................................................6-48 Guided Demonstration Overview: Revision, Lot, and Serial Controls..........................................................6-49 Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................6-50 Practice Overview: Revision, Lot, and Serial Controls .................................................................................6-53 Practice - Revision, Lot, and Serial Controls.............................................................................................6-54 Solution – Revision, Lot and Serial Controls ............................................................................................6-56 Agenda...........................................................................................................................................................6-67 Locator Flexfield Structure............................................................................................................................6-68 Changing Locator Control .............................................................................................................................6-69 Transacting Controlled Items ........................................................................................................................6-70 Agenda...........................................................................................................................................................6-72 Summary........................................................................................................................................................6-73 11i Transacting Inventory Concepts ..............................................................................................................7-1 11i Transacting Inventory Concepts ..............................................................................................................7-2 Module Objectives.........................................................................................................................................7-3 Agenda...........................................................................................................................................................7-4 Inventory Structure ........................................................................................................................................7-5 Overview .......................................................................................................................................................7-6 Agenda...........................................................................................................................................................7-7 Inventory Transactions ..................................................................................................................................7-8 Agenda...........................................................................................................................................................7-9 Transaction Types..........................................................................................................................................7-10 Transaction Source Types..............................................................................................................................7-11 Transaction Action ........................................................................................................................................7-13 Transaction Reasons ......................................................................................................................................7-15 Transaction Managers....................................................................................................................................7-16 Agenda...........................................................................................................................................................7-17 Move Orders..................................................................................................................................................7-18 Agenda...........................................................................................................................................................7-19 Shortage Alerts and Notifications..................................................................................................................7-20 Agenda...........................................................................................................................................................7-21 Mobile Transactions ......................................................................................................................................7-22 Agenda...........................................................................................................................................................7-23 Summary........................................................................................................................................................7-24 11i Transaction Setup......................................................................................................................................8-1 11i Transaction Setup ....................................................................................................................................8-2 Objectives ......................................................................................................................................................8-3 Agenda...........................................................................................................................................................8-4 Running Transaction Managers.....................................................................................................................8-5 Predefined Transaction Types .......................................................................................................................8-7 Guided Demonstration Overview: Defining a Customized Transaction .......................................................8-8 Guided Demonstration - Customized Transactions ...................................................................................8-9 Practice Overview: Defining a Customized Transaction...............................................................................8-11 Practice - Defining a Customized Transaction ..........................................................................................8-12 Solution – Defining a Customized Transaction .........................................................................................8-13 Agenda...........................................................................................................................................................8-18 Inter–organization Shipping Network ...........................................................................................................8-19 Shipping Method ...........................................................................................................................................8-21 Agenda...........................................................................................................................................................8-22 Movement Statistics ......................................................................................................................................8-23 Movement Statistics Parameters....................................................................................................................8-25 Collecting and Reporting Movement Statistics .............................................................................................8-26

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Agenda...........................................................................................................................................................8-28 Account Aliases.............................................................................................................................................8-29 Agenda...........................................................................................................................................................8-30 Setting Up for Move Orders ..........................................................................................................................8-31 Setup Steps for Move Orders.........................................................................................................................8-33 Agenda...........................................................................................................................................................8-35 Material Shortage Alerts and Notifications ...................................................................................................8-36 Setting Up Shortage Alerts and Notifications................................................................................................8-38 Movement Statistics Reports .........................................................................................................................8-39 Transaction Reports and Inquiries .................................................................................................................8-41 Agenda...........................................................................................................................................................8-42 Transaction Profile Options...........................................................................................................................8-43 Agenda...........................................................................................................................................................8-49 Implementation Considerations .....................................................................................................................8-50 Implementation Considerations for Shortage Messages................................................................................8-51 Agenda...........................................................................................................................................................8-52 Summary........................................................................................................................................................8-53 11i Issue and Transfer Material .....................................................................................................................9-1 11i Issue and Transfer Material .....................................................................................................................9-2 Module Objectives.........................................................................................................................................9-3 Agenda...........................................................................................................................................................9-4 Transaction Flows..........................................................................................................................................9-5 Inventory Transactions ..................................................................................................................................9-6 Inventory Transactions Without Documents and Requisitions......................................................................9-7 Inventory Transactions With Documents and Requisitions...........................................................................9-8 Agenda...........................................................................................................................................................9-9 Control Options and Restrictions...................................................................................................................9-10 Agenda...........................................................................................................................................................9-11 Subinventory Transfer ...................................................................................................................................9-12 Guided Demonstration: Subinventory Transfer.............................................................................................9-13 Guided Demonstration - Subinventory Transfers ......................................................................................9-14 Miscellaneous Transaction (Account Receipt) ..............................................................................................9-15 Application of Miscellaneous Transactions...................................................................................................9-17 Inter-organization Direct Shipment ...............................................................................................................9-18 Interorganization Intransit Shipment .............................................................................................................9-20 Guided Demonstration Overview: Interorganization Transfer ......................................................................9-22 Guided Demonstration - Interorganization Transfer..................................................................................9-23 Practice Overview: Interorganization Transfer..............................................................................................9-24 Practice - InterOrganization Transfer ........................................................................................................9-25 Solution – InterOrganization Transfer .......................................................................................................9-26 Agenda...........................................................................................................................................................9-29 Managing Receipts ........................................................................................................................................9-30 Using Locations in Receiving........................................................................................................................9-31 Entering Receipt Lines ..................................................................................................................................9-32 Express Receipts and Receiving Transactions...............................................................................................9-34 Receiving Unordered Items ...........................................................................................................................9-35 Direct Receipts ..............................................................................................................................................9-37 Inspecting Received Items.............................................................................................................................9-39 Guided Demonstration Overview: Receiving Items into Inventory ..............................................................9-41 Guided Demonstration - Receiving Stock into Inventory..........................................................................9-42 Practice Overview: Receiving Items into Inventory ......................................................................................9-44 Practice - Receiving Material into Inventory.............................................................................................9-45 Solution – Receiving Material into Stock..................................................................................................9-46 Returns to Receiving .....................................................................................................................................9-51 Returns to Inventory ......................................................................................................................................9-52 Entering Returns ............................................................................................................................................9-53

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11i Inventory Management Fundamentals Table of Contents v

...9-75 Guided Demonstration ......................10-13 Overview of Oracle Inventory Forecasting.....................................9-105 Summary.............................................................................................................10-6 Order Planning...............................9-92 Guided Demonstration Overview: Mobile Transactions ...............................................................................................................10-9 Replenishment Process for Supplier Supply Sources ....................................................................................................................................................................9-73 Transact Move Orders ......................................................................................................................................................................................................................................10-21 Overview of Min-max Planning ...................................................................10-7 How Much to Order....................................................................................................................................................................................................................... 11i Inventory Management Fundamentals Table of Contents vi ............................9-67 Move Order Allocating............................................................................................ All rights reserved.....................Mobile Application Inter-organization Transfer ...................................................................................................................................................................................................................................................................................................9-97 Solution – Mobile Transactions..............................................................9-56 Agenda........10-19 Economic Order Quantity.............................9-98 Agenda...............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................10-20 Overview of Reorder-Point Planning ..........................................................................................................................................................................................................................................................................10-2 Objectives ..........................................................................10-5 Overview of Inventory Planning .....................................................................................................................................10-26 Agenda..............................................10-11 Replenishment Process for Product Supply Sources ...........................................10-1 11i Replenishment Concepts ..................9-58 Agenda.................................................9-91 Transactions Using a Mobile Device........................................................................................................................................................10-4 Overview ...................................................................Guided Demonstration Overview: Receiving Returns to Inventory ......................9-57 Receiving Reports............................................................9-65 Move Order Components ...................Mobile Transactions ..........................................................................................................................................................................................................................................................................................................................................................9-96 Practice .....................................................9-63 Move Order Source Types.........................................................................................................................................................................................................................9-69 Generate Move Orders................................................................................................................................................................................................................................................................................9-61 Benefits of Managed Material Flow in a Facility ..............10-14 Forecast Types.........................................................................................................................................................................................10-8 Replenishment Process for Intra-Org Supply Sources...........................................................................................................10-23 Overview of Replenishment Counting ..................................10-18 Safety Stock.............................................................................................................................Transacting Move Orders.................................................................................10-10 Replenishment Process for Inter-Org Supply Sources...............9-78 Practice .........................9-94 Guided Demonstration .9-71 Item Allocation .......................................................9-95 Practice Overview: Mobile Transactions.........10-22 Overview of Kanban Replenishment...............................9-81 Agenda..9-104 Agenda... 2005........................................................................................................................................................10-25 Overview of PAR Counting....10-27 l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle.................................................................9-55 Guided Demonstration ..................................................Transacting Move Orders ..............................................................9-59 Move Orders Process Flow.................................................................................10-17 Replenishment Methods Levels.9-106 11i Replenishment Concepts...........................................................................................................10-3 Agenda................................................................................................................................9-74 Guided Demonstration Overview: Transacting Move orders ........................9-103 Managing Shipments ................................................................................................................................................................................9-60 Move Order Requisition Approval Process ................................................................................................................................................................10-16 Oracle Inventory Replenishment Methods ..................................................................................................................................................................................................................10-12 Agenda....................Receiving Returns ..............................................................................9-79 Solution – Transacting Move Orders.................................................................................................................................................................................................................................................................10-15 Agenda.........................................................................................................................................................9-76 Practice Overview: Transacting Move orders..........................................................................................................................................................................

..........................................................11-65 Agenda.........11-39 Entering Lead Times ...............................................................................................11-10 Focus Forecasting Example.........11-2 Objectives ............................................................................................................11-20 Forecast Setup and Maintenance .............................................................11-22 Guided Demonstration Overview: Creating a Manual Forecast ................11-7 Focus-Forecasting (continued) .....................................................11-35 Reorder-Point Planning Steps...........................................10-29 Summary...................................................................and Season-Enhanced Forecast (TSEF).................................................................................................Performing Min-max Planning .....................................11-18 Trend.....................................................................................................................11-3 Agenda...................................Reorder Point Planning .........................................................................................................................11-23 Guided Demonstration ...................................................................................................................................................................................10-30 11i Replenishment Fundamentals ..............................11-41 Entering Safety Stocks................Mobile Replenishment Count Overview ....................................................................................................................................................................................................................................................................................................................................................11-6 Focus Forecasting .........................................................................11-24 Practice Overview: Creating a Manual Forecast ...11-38 Entering General Planning Attributes for Reorder-point Planning......................................................................................................................................................................................................................................................................................11-46 Guided Demonstration .....................................................................................11-47 Agenda........................................................................................................................................................................................11-28 Agenda......................................................................................................................................................................11-14 Trend-Enhanced Forecast (TEF) ...............................11-49 Min-max Planning .........................................................................................................11-48 Uses of Min-max Planning ...........................................................................11-5 Agenda.................................................................11-26 Practice ...................................................................................................................................................................................Creating a Manual Forecast .................................11-57 Submitting the Min-max Planning Requests ..........................................................11-55 Selecting a Planning Level .............................................................................................................11-44 Guided Demonstration: Reorder Point Planning ................................................................................................11-54 Min-max Planning Setup Procedure .....................................11-58 Guided Demonstration Overview: Min-max Planning .... 2005...................................................................................................................................................11-37 Entering Item Planning Attributes ............................11-52 Min-max Planning Steps ...................11-11 Statistical Forecasting...................................................11-73 l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle.................... All rights reserved......................................................................................................................................................................................................................11-61 Practice Overview: Min-max Planning.........................................................11-13 Exponential Smoothing Forecast (ESF) ......11-4 Overview ...........................................................................................................................................11-72 Replenishment Planning Steps ..................................................................11-60 Guided Demonstration ..........................................................................................................................11-32 Reorder-point Planning: Safety Stock ..............................................................................................................................................................11-71 Uses of Replenishment Counting ......................Min-max Planning.................................................................................................................................................................................................................................................................................11-27 Solution – Creating a Manual Forecast......................................................................................................11-31 Uses of Reorder-point Planning.....................................................................................................................11-16 Season-Enhanced Forecast (SEF).....................................................................................................................................................................................................................................................................................................................................................................................................................................11-64 Solution – Performing Min-max Planning...................................................................................................................................................11-34 Reorder-Point Planning: Reorder Quantity..........................................................................................11-53 Item Planning Attributes...........................................................11-8 Using Focus Forecasting ....................................................................................................................................................................................................................................................11-50 Min-max Planning: When to Order? .......................................................................................................................................11-42 Performing Reorder-point Planning................................................................................................................................................................11-1 11i Replenishment Fundamentals...................................................................................................................................................................................................................................11-33 Reorder-Point Planning: Lead Time ....................................................11-63 Practice ....................11-51 Min-max Planning: How Much to Order? .............................................. 11i Inventory Management Fundamentals Table of Contents vii ..................Creating a Manual Forecast ...........................................................................................11-56 Entering Planning Attributes ...............................................................................................................................................................................10-28 Agenda...............

.................................................Performing a Replenishment Count Using Forms .........................................11-128 Specifying Supply and Demand Time Fences .................................................12-8 Copyright © Oracle....................................................................................................11-123 ATP Rules and ATP Checks...........................................................................................................11-142 Planning and Forecasting Profile Options .............................................................................Generating Kanban Cards......................................Performing a Replenishment Count Using the Mobile Application ..............................................................................Performing a Replenishment Count Using the Mobile Application ........................................................................11-137 ATP Checking ..................................11-116 Practice .................................................................................................................................................................................................11-111 Kanban Replenishment Sources ......................................................................................................................................................11-153 11i Inventory Accuracy Concepts .................................................11-145 Subinventory Setup Windows .............................................................................................11-109 Kanban Supply Status.......................................................................................................................................................................................................................11-78 Replenishment Count Lines...................................................................................................................................................................................................................................11-94 Processing PAR Counts...............................................................................................................................................................................................................................................................11-86 Practice Overview: Performing a Replenishment Count Using the Mobile Application................................................................................11-92 Solution ....................................12-4 Overview of Inventory Accuracy ............................................................................................11-124 Uses of ATP in Oracle Inventory ................................................................................................................... All rights reserved..........................................................................................................................................................................................................................12-1 11i Inventory Accuracy Concepts.......................................................................................................................................................................................................11-117 Solution – Generating Kanban Cards ......................................................11-151 Agenda.....................................11-81 Practice Overview: Performing a Replenishment Count Using Forms....................................................................................................................................................11-138 Viewing ATP Criteria.........................11-106 Kanban Planned Items ...........................................................................11-122 Available to Promise ..........................................................................................................................................................................................................................................................................................................................................................................................................................................11-77 Replenishment Count Headers .11-126 ATP Rules Setup Steps...............................................11-141 Agenda.......12-2 Objectives ..................Kanban ........................11-75 Item Subinventories Window .................................................... l a n r e t n I e l c a r O ly n O e s U I A O & 11i Inventory Management Fundamentals Table of Contents viii .......................................................................................................................................................................................................................................11-118 Agenda..11-107 Kanban Cards ...............................11-76 Item Subinventories: Order Modifier Tab ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................11-148 Replenishment Method Selection ......................................................................................................................11-112 Kanban Card Printing ..........................................................11-83 Practice ..................................................................................................................................................................11-102 Reorder Quantity For PAR Count .................................................................................................................................................................11-143 Setting Up the Min-Max System Profile Value..................................................................11-125 Steps for Checking ATP ...................................11-113 Guided Demonstration Overview: Generating Kanban Cards.................................12-6 ABC Analysis Overview ................................11-79 Processing Replenishment Counts........................................................11-105 Kanban Cards .....................11-114 Guided Demonstration ........................................................11-103 Agenda...................................11-84 Solution .................................................................................................................................................11-146 Agenda..................11-115 Practice Overview: Generating Kanban Cards .......................................................................................... 2005.....................................................11-147 Min-Max Order Type and Order Source .....................................................11-134 Specifying Supply Sources ..............................................................................................................Subinventories Window ................................................................................................................................................................................................................................................11-127 Defining Computation Options..............................................................11-130 Specifying Demand Sources......................................................................................................................................................................................Performing a Replenishment Count Using Forms ............11-136 Setting Up Item and Bills for ATP Checking ................................................................11-152 Summary.................................................................12-5 Agenda............................................................................................................................................................................12-3 Agenda...................................................................................11-91 Practice ..........................................................................12-7 Agenda....

..........................................................13-20 Solution – Compiling an ABC Analysis................................................................................................13-6 ABC Compilation Criteria................................................................................................................................................................................................................................................................................................................................................................................................................12-10 Physical Inventory Overview .............................................................................................................. 2005................................................................................................................13-48 Guided Demonstration Overview: Performing Cycle Counts ..............................................................................................................................................................................13-51 Practice Overview: Performing Cycle Counts............................................................................................................................................................................................................13-14 Guided Demonstration Overview: Compiling an ABC Analysis ..............................12-14 Agenda......13-22 Agenda..................................................................................................13-40 Count Requests ..............................................................................................................................................Cycle Counting ..............................13-31 Approval Tolerances.........................................12-16 11i Inventory Accuracy Fundamentals...................................................13-67 Solution – Mobile Counting ...................................................................................................................................................................................................13-10 Agenda.....................................................................................................................................................................................13-4 Defining an ABC Analysis .......................................13-16 Guided Demonstration .................................................................................................................................................................................13-36 Agenda..............................................13-9 ABC Valuation Scope ..........................13-3 Agenda....................................13-28 Defining and Maintaining a Cycle Count ............................................................................................................................................................13-35 Cycle Count Items .......................................13-19 Practice ..........13-50 Guided Demonstration ................................................................................................................................................................................................................................................................................Mobile Counting.............................................................................Performing a Cycle Count ........................................................................................13-44 Agenda............................................................13-2 Objectives ..............................................................................................13-13 ABC Item Assignments .........................................13-68 Agenda............................................................................................................................................................................... All rights reserved....................ABC Analysis ...........................................................................................................................................................................................................................................................................................................................................................................12-12 Agenda.....................................................................................................................................................................................................................................13-46 Automatic Recounts ...................................................... 11i Inventory Management Fundamentals Table of Contents ix ........................................................13-12 Defining ABC Classes................................................................................12-15 Summary.............................................................................................................................................................................................................................................................................................Compiling an ABC Analysis .....................................................................13-32 Hit/Miss Tolerance ..............................................13-41 Entering Cycle Counts......12-13 Mobile Inventory Accuracy Overview ...........13-1 11i Inventory Accuracy Fundamentals ..................................................................................................................................13-74 l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle................13-66 Practice ......................................................13-11 Defining ABC Groups ............................................................................................................................................................13-47 Approving Cycle Counts and Adjustments .................................13-34 Measurement Errors ....................................................................................................................................................................................................................................................................................................................................................................................................................................13-17 Practice Overview: Compiling an ABC Analysis..........................................12-11 Why Perform Physical Inventories? .........................................................13-45 Count Adjustments and Approvals .......................................................................................13-54 Practice .............13-55 Solution – Performing a Cycle Count........................................................................................................................................................................................................13-43 Cycle Count Open Interface ..13-7 Agenda.........................................................................................................................................................................................................................................................................13-57 Practice Overview: Mobile Counting ....................................................................13-29 Agenda................12-9 Agenda.................................................................................................................................................................................................................................................13-73 Summary...........................................................Cycle Counting Overview .............................................................................................................................................................................13-30 Cycle Count Approval Tolerance ...........13-5 Define and Run an ABC Compilation ..........................................................................13-38 Automatic Scheduling ...................13-39 Manual Scheduling ............................................................................................................................................

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Prerequisites • There are no prerequisites for this course. l a n r e t n I e l c a r O 11i Inventory Management Fundamentals Table of Contents xi ly n O e s U I A O & Copyright © Oracle. How This Course Is Organized 11i Inventory Management Fundamentals is an instructor-led course featuring lecture and handson exercises. . you should have the following qualifications: • Working experience with Oracle Applications. Online demonstrations and written practice sessions reinforce the concepts and skills introduced. All rights reserved. 2005.Preface Profile Before You Begin This Course Before you begin this course.

Related Publications Oracle Publications Title Oracle Inventory User’s Guide Part Number A83507–08 Additional Publications • None l a n r e t n I e l c a r O 11i Inventory Management Fundamentals Table of Contents xii ly n O e s U I A O & Copyright © Oracle. . 2005. All rights reserved.

” Initial cap Italic Quotation marks Uppercase Arrow Brackets Commas Plus signs l a n r e t n I e l c a r O Key combinations Use the SELECT command to view information stored in the LAST_NAME column of the EMP table. windows Code output. Select the Can’t Delete Card check box. Pathname: Open c:\my_docs\projects URL: Go to http://www. table names Menu paths Key names Key sequences Example The algorithm inserts the new key. Open the Master Schedule window. All rights reserved. filenames.com. 2005. Press [Enter].com User input: Enter 300 Username: Log on as scott Customer address (but Oracle Payables) Do not save changes to the database. case sensitive (default is lowercase) Element Glossary term (if there is a glossary) Buttons. 300). URLs. Lesson 3. check boxes. where user_id is the name of the user. functions. ly n O e s U I A O & Select File > Save. Select “Include a reusable module component” and click Finish. Code output: debug. “Working with Objects. Password: User tiger as your password.ora file. Click the Executable button. Assign a When-Validate-Item trigger to the ORD block. user input. titles of books and courses. Directory: bin (DOS). directory names. variables Interface elements with long names that have only initial caps. [D] Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del] Copyright © Oracle. For further information. commands. [F].oracle. triggers. schemas. 11i Inventory Management Fundamentals Table of Contents xiii . see Oracle7 Server SQL Language Reference Manual. Enter user_id@us.oracle. passwords. This subject is covered in Unit II. usernames Graphics labels (unless the term is a proper noun) Emphasized words and phrases. lesson and chapter titles in crossreferences SQL column names. Press and release keys one at a time: [Alternate].set (‘I”.Typographic Conventions Typographic Conventions in Text Convention Bold italic Caps and lowercase Courier new. pathnames. $FMHOME (UNIX) Filename: Locate the init.

11i Inventory Management Fundamentals Table of Contents xiv . such as the following example. All rights reserved. table names Passwords PL/SQL objects Example When-Validate-Item SELECT last_name FROM s_emp. (N) From the Navigator window. (B) Click the Approve button. OG_ACTIVATE_LAYER (OG_GET_LAYER (‘prod_pie_layer’)) Lowercase italic Uppercase Syntax variables CREATE ROLE role SQL commands and SELECT userid FROM emp. 3. (N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve This simplified path translates to the following: 1. (M) From the menu. DROP USER scott IDENTIFIED BY tiger.Typographic Conventions in Code Convention Caps and lowercase Lowercase Element Oracle Forms triggers Column names. functions Typographic Conventions in Oracle Application Navigation Paths This course uses simplified navigation paths. Notations: (N) = Navigator (M) = Menu (T) = Tab (B) = Button (I) = Icon (H) = Hyperlink (ST) = Sub Tab l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle. to direct you through Oracle Applications. 2005. select Query then Find. 2. select Invoice then Entry then Invoice Batches Summary.

expand Journals. In the navigation frame of the help system window. l a n r e t n I e l c a r O 11i Inventory Management Fundamentals Table of Contents xv ly n O e s U I A O & Copyright © Oracle. Review the Enter Journals topic that appears in the document frame of the help system window. Under Journals. Under the General Ledger entry. All rights reserved.Typographical Conventions in Oracle Application Help System Paths This course uses a “navigation path” convention to represent actions you perform to find pertinent information in the Oracle Applications Help System. 2. . select Enter Journals. expand the General Ledger entry. The following help navigation path. 4. 2005. 3. for example— (Help) General Ledger > Journals > Enter Journals —represents the following sequence of actions: 1.

l a n r e t n I e l c a r O 11i Inventory Management Fundamentals Table of Contents xvi ly n O e s U I A O & Copyright © Oracle. All rights reserved. 2005. .

Chapter 9 .11i Issue and Transfer Material Chapter 9 l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 1 . 2005. All rights reserved.

11i Issue and Transfer Material l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 9 .Page 2 . All rights reserved.

All rights reserved.Module Objectives l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 9 .Page 3 . 2005.

Page 4 . 2005. Chapter 9 . All rights reserved.Agenda l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.

Page 5 . or out of inventory. • All transactions validate the various controls (revision. lot number. 11i Issue and Transfer Material Chapter 9 . • A transaction can change the quantity. location. and serial number) that you enable for your items.Transaction Flows Transaction Flows • A transaction is an item movement into. within. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. • You can choose your own transaction processing methods to use available computing resources most effectively. and inventory value of an item. • Oracle Inventory supports a number of predefined and user-defined transaction types. 2005. All rights reserved. • Every material movement has a corresponding set of accounting transactions that Oracle Inventory automatically generates. locator.

11i Issue and Transfer Material Chapter 9 .Inventory Transactions You Can Perform the Following Oracle Inventory Transactions • Receive items into your organization from a general ledger account number. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 6 . • Transfer items from a subinventory in your organization to another subinventory in the same organization. • Transfer items between organizations by way of intransit. • Reserve items for a specific account or temporarily prevent the release of items onto the shop floor. All rights reserved. • Issue items from your organization to a general ledger account number. • Transfer items directly between organizations.

Inventory Transactions Without Documents and Requisitions

Inventory Transactions Without Documents and Requisitions • Inventory organization transfers can be accomplished without using an internal requisition or internal sales order. • You can use miscellaneous receipts to receive material without a purchase order number. • Use miscellaneous issues to issue material without approvals or a document number. • Use subinventory transfers to transfer the location of material without a document number.

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Inventory Transactions With Documents and Requisitions

Inventory Transactions with Documents and Requisitions You can use internal requisitions and internal sales orders as an approval mechanism and to provide a document to track when you transport material between warehouses or transfer material across inventory organizations. Within a single warehouse or inventory organization: • Use move orders with a Move Order Issue transaction type to approve a transaction and to provide a document to track the issue of the material. Previously, sales orders with approvals in the order cycle were used to issue the material and track the movement. • Use move orders with a Subinventory Transfer transaction type to approve a transfer and to provide a document to track the transfer of the material.

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Agenda

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Control Options and Restrictions

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Agenda

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Subinventory Transfer

Subinventory Transfer (N) Transactions > Subinventory Transfer (B) Transaction Lines Choosing a Transaction Type You can use one of your user-defined transaction types or one of the system predefined transaction type, Subinventory Transfer. Entering a Transaction Source You can enter source information for the source type associated with the transaction type you chose. The source type corresponding to the transaction type determines whether Oracle Inventory validates the source information. Application of Subinventory Transfers You can move items from one bin to another. You can replenish floor stock inventories or move items from one stockroom to another. (Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Transferring Between Subinventories

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Guided Demonstration: Subinventory Transfer

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Page 14 .Guided Demonstration . (N) > Transactions > Subinventory Transfer Enter Subinventory Transfer as the Type. 2. Enter the following transfer information. (M) File > Close Form. 3. All rights reserved. Choose Transaction Lines. 2005.Subinventory Transfers Responsibility: Inventory. 4. − Item: AS18947 − Subinventory: FGI − Quantity: 45 − To Subinventory: Stores (M) File > Save. Chapter 9 . 6. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Vision Operations USA 1. 5.

2005. The source type corresponding to the transaction type determines whether Oracle Inventory validates the source information. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Issue and Transfer Material Chapter 9 .Miscellaneous Transaction (Account Receipt) Miscellaneous Transaction (N) Transactions > Miscellaneous Transaction Choosing a Transaction Type You can use one of your user-defined transaction types or one of the system-defined transaction types: • Account alias issue • Account alias receipt • Account issue • Account receipt • Miscellaneous issue • Miscellaneous receipt Entering a Transaction Source Enter source information for the source type associated with the transaction type you chose.Page 15 . All rights reserved.

(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Performing Miscellaneous Transactions l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005. All rights reserved. Entering an Account Number Charge each miscellaneous transaction to an account number or an account alias. If your source type is Account alias.If you enter an account or an account alias. enter a source for your miscellaneous transaction.Page 16 . you might enter Goodwill as your source and the expense account corresponding to Goodwill or Charities in the Account field. the account is credited or debited depending on whether you are conducting an issue or a receipt. When your transaction type has a userdefined source type. your account number is not displayed but Oracle Inventory uses the account identified by your account alias. For example if your transaction type is Issue to Charity. Chapter 9 .

shelf-life expiration. departments.Page 17 . loss. All rights reserved. or inaccurate record keeping l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Application of Miscellaneous Transactions When do You Perform Miscellaneous 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. 11i Issue and Transfer Material Chapter 9 . 2005. or projects • Receiving items that were acquired by assorted means (without purchase orders) • Entering adjustments and corrections to system quantities due to theft. vandalism.

Entering Freight Information You can choose the freight carrier to use for your shipment. Use either a user-defined or a system-defined transaction type. Entering a Transaction Source You can enter source information for each interorganization transfer transaction. freight charge. Update the default interorganization transfer accounts. All rights reserved. 11i Issue and Transfer Material Chapter 9 . 2005.The source type corresponding to the transaction type determines whether Oracle Inventory validates the source information.Page 18 . and transfer credit information.Inter-organization Direct Shipment Inventory Direct Shipment (N) Transactions > Inter-organization Transfer (B) Transaction Lines Transaction Type You must use a transaction type that corresponds to the type of transfer (direct or intransit). Enter source information for the source type associated with the transaction type you chose. You can specify the expected receipt date for your shipment. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Oracle Inventory and MRP/MPS use intransit shipments as supply sources for ATP checking and the planning processes.

(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > InterOrganization Transfers

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Interorganization Intransit Shipment

Intransit Shipment (N) Transactions > Inter-organization Transfer > (B) Transaction Lines When you use the Intransit Shipment window to perform the transfer transaction: • You do not need to specify the delivery location. • You only need to enter the subinventory you are shipping from, a shipment number, the freight information, and a percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute transfer charges. Transaction Type You must use a transaction type that corresponds to the type of transfer (direct or intransit). Use either a user-defined or a system-defined transaction type. Entering a Transaction Source You can enter source information for each interorganization transfer transaction. Enter source information for the source type associated with the transaction type you chose. The source type corresponding to the transaction type determines whether Oracle Inventory validates the source information. Entering Freight Information

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You can choose the freight carrier to use for your shipment. Update the default interorganization transfer accounts, freight charge, and transfer credit information. You can specify the expected receipt date for your shipment. Oracle Inventory and MRP/MPS use intransit shipments as supply sources for ATP checking and the planning processes. (Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > InterOrganization Transfers

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Guided Demonstration Overview: Interorganization Transfer

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Guided Demonstration - Interorganization Transfer
Responsibility: Inventory, Vision Operations USA 1. (N) Transactions > Inter-organization Transfer Note: Verify a shipping network exists between the shipping organization and the receiving organization. 2. Enter the following transaction information: − To Org: M2 − Type: Intransit Shipment − Freight: DHL − Shipment Number: 001 − Containers: 2 Choose Transaction Lines Enter the following transaction information: − Item: AS18947 − From Subinventory: FGI − To Subinventory: Stores − Quantity: 10 (M) File > Save. (M) File > Close Form.

3. 4.

5. 6.

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Practice Overview: Interorganization Transfer

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Practice - InterOrganization Transfer
Overview
Your instructor has validated the shipment of product from the Seattle, WA organization (M1) to the Boston, MA Organization (M2). Now we will ship a part between M1 and M2. Note: Make sure the part you decide to ship has been assigned to both M1 and M2.

Assumptions
• • You are skilled in Oracle navigation. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Transacting Items Transfer an item from M1 Seattle Manufacturing to M2 Boston Manufacturing using the following information: • • • • • • Transact Type: Shipment Number: Freight: Waybill: Containers: Expected Receipt date: Inventory Intransit shipment T## DHL T## 1

1 week from today.

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2. All rights reserved. 2005. Navigate to the Inter Organization Transfer Window. • (N) Transactions > Inter-organization Transfer − To Org: M2 Boston Manufacturing − Transact Type: Intransit shipment − Shipment Number: T## − Freight: DHL − Waybill: T## − Containers: 1 − Expected Receipt date: 1 week from today.Solution – InterOrganization Transfer Transacting Items Responsibility = Inventory. Select Transaction Lines. Vision Operations USA 1. 11i Issue and Transfer Material Chapter 9 .Page 26 . − Item: − From subinventory: − To subinventory: − Quantity: l a n r e t n I e l c a r O 1 ly n O e s U I A O & Your Choice ##-FGI FGI (this is Boston’s subinventory) Copyright © Oracle Corporation.

6. Enter your part number and select the Find button. Navigate to the Material Transactions window.Page 27 . 2005. All rights reserved. • (N) Transactions > Material Transactions. 4. 11i Issue and Transfer Material Chapter 9 . the system requires you to enter that information for both the shipping organization and the receiving organization. 3.NOTE: If you choose an item that has inventory controls. (M) File > Close Form. Viewing Transactions 5. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. (M) File > Save.

8. 11i Issue and Transfer Material Chapter 9 .Page 28 .7. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Select the Intransit tab. 2005. (M) File > Close Form. All rights reserved.

Page 29 .Agenda l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. Chapter 9 . 2005.

2005. and expense destinations.Page 30 .Managing Receipts Managing Receipts Receive both internally and externally sourced shipments. 11i Issue and Transfer Material Chapter 9 . shop floor. You can deliver to inventory. All rights reserved. You can satisfy the following receiving business needs: • Increased receiving process control • Streamlined receiving throughput • Increased transaction visibility and traceability • A common process for all receipt types l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

All rights reserved.Page 31 .Using Locations in Receiving Using Locations in Receiving This slide shows the use of several receiving locations and the delivery of ten items each to multiple destinations. 2005. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 9 .

the receipt quantity is adjusted to reflect the new unit of measure. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. If you change the unit of measure. Substitutions You can receive predefined substitute items when you allow suppliers to ship alternatives to the items that you order. 11i Issue and Transfer Material Chapter 9 .Entering Receipt Lines Specifying Receipt Line Information (Oracle Purchasing) You typically process receipts by selecting the items you want to receive and noting actual quantities. See the next few slides for information on these different types and when each should be used. Purchasing displays the Quantity due for the shipment. There are minor differences between the different Receiving transactions you will process. You can override this value if you are recording a partial receipt or an over-receipt. The quantity received on the corresponding purchase order or return material authorization (RMA) is updated to reflect the received quantity. All rights reserved. 2005. Scenario • You sell bicycles and assign unique internal item numbers to mountain bikes of the same model but different colors.Page 32 .

When you query in the list of values for the item. All rights reserved. Supplying Handling of Substitute Items When you receive a substitute item. 2005.Page 33 . • If you perform a standard receipt. • If you perform a direct receipt. Chapter 9 .You also have an agreement with your mountain bike supplier that allows him to ship white bikes in place of the blue bikes you order if that is all he has in stock. Oracle increments on-hand balances for the new item. Specifying Substitute Receipt Details You can select a substitute item in the Lines region based on the following restrictions: • You must allow substitute receipts for the shipments you want to receive. Purchasing creates receiving supply for the new item. • You have defined substitutes for the items you want to receive. Oracle Purchasing displays all valid substitutes for the item you want to receive. (Help) Oracle Manufacturing Applications > Oracle Purchasing > Receiving > Entering Receipt Lines • l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Oracle Purchasing removes the purchase order supply for the original item. All subsequent receipt processing is identical to other standard and direct receipts.

All rights reserved. • Omit individual shipments that you do not want to process by selecting the Omit action in the Receipt Lines region. • Specify the supplier for new receipts.Express Receipts and Receiving Transactions Specifying Express Receipt Details Options • Create a new receipt or add to an existing receipt for the supplier who shipped the items you want to transact. In order to enable the Express button. the Find Expected Receipts window must be able to derive the supplier either by specifying the supplier or a PO number. 2005. • Click Express to select either the final destination or the default receiving location. 11i Issue and Transfer Material Chapter 9 . (Help) Oracle Manufacturing Applications > Oracle Purchasing > Receiving > Express Receipts and Receiving Transactions l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. • Any receipts that cannot be transacted with an express receipt will remain in the Receipt Line region after you save your work.Page 34 .

Receiving Unordered Items Unordered Items You can receive items for which there is no corresponding purchase order. • You have an agreement with the supplier that allows overruns against existing orders. and then continue transacting them as you would any other supplier receipt. In both cases you want to receive the items so you can track them on the system while you wait for a buyer to decide which purchase order to use for the match transaction. Scenario • You receive items that you actually did order. Choose the Supplier and Internal tabbed region to create an unordered receipt that will later be matched to a purchase order or release. 11i Issue and Transfer Material Chapter 9 . and Quantity details.Page 35 . Item. The first step is to create a record of the receipts. Receipt Header window (Oracle Purchasing) Navigate to the Find Expected Receipts window. 2005. you do not allow over-receipts for this item. however. All rights reserved. citing Supplier. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. but the shipping documentation is illegible or missing. Match these received items to an existing purchase order in a second step.

Number of Containers in the Receipt Header window. • Optionally. • Location is a required field and must be a receiving location. All rights reserved. or item description. When you perform the match. Packing Slip. Supplying Handling of Unordered Items When you receive unordered items. item. • Perform a standard receipt for the unordered item shipment quantity. unit of measure. the supply is invisible to Oracle’s planning and inventory products until you match this receipt to a purchase order. Specifying Unordered Receipt Lines Enter specific line information such as quantity. An RMA is created in Order Management to authorize a customer's returning an item to your company. or item description for all unordered items received.Choose the Customer tabbed region to create an unordered receipt that will later be matched to a Return Material Authorization (RMA). Oracle Purchasing reduces the purchase order supply by the received quantity and replaces it with a receiving supply for that same quantity (Help) Oracle Manufacturing Applications > Oracle Purchasing > Receiving > Unordered Receipts l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005. item. Initiating an Unordered Receipt • Click Unordered in the Find Expected Receipts window. • Enter receipt header information such as Freight Carrier. Specifying Unordered Receipt Details (Oracle Purchasing) You can enter specific line information such as quantity. unit of measure. • You cannot add to an unordered receipt header but you can attach detail lines to that header. • Note that the Destination Type defaults to Receiving.Page 36 . This information is critical to the subsequent process of matching this receipt to its actual order. Chapter 9 . you can provide receipt details or attachments for this transaction. • Create a new receipt for the supplier who shipped the unordered items.

11i Issue and Transfer Material Chapter 9 . Delivery Requirements for Direct Receipts Oracle Purchasing requires that all destination details be complete for direct receipts.Page 37 . you cannot perform a direct receipt unless your Allow Routing Override profile is set to Yes. All rights reserved. You can specify the quantity you want to receive in your selected unit of measure.Direct Receipts Performing a Direct Receipt If the associated receipt Routing is Standard Receipt or Inspection Required. Oracle Purchasing prompts you for any missing destination details. 2005. including: Destination Type Destination Details Inventory Lot and serial numbers if required by Inventory setup Inventory Subinventory Inventory Locator if required by Inventory setup Inventory Item revision if required by Inventory setup Expense Deliver to location Direct Receipts with Multiple Distributions l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Optionally you can enter receipt line details and attachments for this shipment. When you save your work.

All rights reserved. Chapter 9 .If you record a direct receipt for a shipment with multiple distributions.Page 38 . You can double-click the plus sign to expand. Oracle Purchasing also prompts you to allocate your receipt quantity manually across these distributions. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. the multiple distributions. or the minus sign to collapse. 2005.

You can add additional information. 2005. you can record four Reject actions for the inspected quantity.Inspecting Received Items Specifying Inspection Details (Oracle Purchasing) Select Accept or Reject for each transaction you want to inspect. Enter the quantity associated with this inspection result. All rights reserved.Page 39 . including a user-defined Quality Code. Oracle Purchasing constructs this transaction history as follows: Receive 15 Reject 15 Reject 15 Reject 15 (Help) Oracle Manufacturing Applications > Oracle Purchasing > Receiving > Inspections and Copyright © Oracle Corporation. For example. Multiple Inspection Results by Transaction You can record multiple inspection results for each transaction. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Issue and Transfer Material Chapter 9 . if a lot of 15 items fails inspection due to four discrete quality problems.

All rights reserved.Page 40 .(Help) Oracle Manufacturing Applications > Oracle Purchasing > Receiving > Inspecting Received Items l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 9 . 2005.

Chapter 9 . All rights reserved.Page 41 .Guided Demonstration Overview: Receiving Items into Inventory l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

Page 42 . (M) File > Close Form. Select the Item to receive. (N) Transactions > Receiving > Receiving Transactions. 10. − M2 Boston Manufacturing (N) Transactions > Receiving > Receipts.Guided Demonstration . Enter the following transaction information: − Type: Internal − Item: AS18947 11. 7. 13. 8. Choose Find. (M) File > Save. Verifying Receipts and Receiving Transacitons 16. (M) File > Save. (M) File > Close Form. 6. Receiving Stock 9. 5. Enter the following receiving information: − Location: M2 Boston − Subinventory: Stores 14. 12. 2005. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Issue and Transfer Material Chapter 9 . Enter the following transaction information: − Source Type: Internal − Item: AS18947 Choose Find. 3. Select the transaction to deliver. (N) Transactions > Receiving > View Receiving Transactions Copyright © Oracle Corporation. 4. 15. 2. Vision Operations USA Receipts 1. (N) Change Organization. All rights reserved.Receiving Stock into Inventory Responsibility: Inventory. Enter the receiving Location.

17. Enter the following transaction information: − Type: Internal − Item: AS18947 18. Choose Find. 2005. Choose Transactions. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 19. Chapter 9 . (M) File > Close Form. 20. Select the appropriate receipt number. 21.Page 43 . All rights reserved.

Practice Overview: Receiving Items into Inventory l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 9 . All rights reserved.Page 44 .

l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 45 . Chapter 9 . move it into inventory. Verifying the Items are in Inventory Verify that the transaction is processed and the resulting on-hand quantity. All rights reserved. 2005.Receiving Material into Inventory Overview In this practice you learn how to receive items into inventory. Moving Items from Receiving into Inventory After you take delivery of the item in receiving.Practice . Assumptions • • • • You are skilled in Oracle Navigation You completed the defining items practice You completed the interorganization transfer practice You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Tasks Receiving Inventory Receive the item into stock that you transferred in the interorganization transfer practice.

• (N) Transactions > Receiving > Receipts − Source Type: Internal − Item: The item you transferred in the Interorganization practice. 4. Vision Operations USA 1. 3. All rights reserved.Page 46 . (N) Change Organization − M2 Boston Manufacturing Navigate to the Receiving Receipts window. 11i Issue and Transfer Material Chapter 9 .Solution – Receiving Material into Stock Receiving Inventory Responsibility = Inventory. l a n r e t n I e l c a r O ly n O e s U I A O & Close the Header when it opens Copyright © Oracle Corporation. 2005. Change Organization to M2 Boston. • 2. Select Find.

• (N) Transactions > Receiving > Receiving Transaction. 6. 11i Issue and Transfer Material Chapter 9 . Save and Close window • • Moving Items from Receiving into Inventory 11. Enter the appropriate inventory control information if necessary. 7. l a n r e t n I e l c a r O (M) File > Save (M) File > Close Form ly n O e s U I A O & 12. Find your item in the Find Receiving Transactions window. 2005.5. All rights reserved. Navigate to the Receiving Transactions window.Page 47 . Copyright © Oracle Corporation. Enter M2 Boston in the Location column 10. 9. Select the item you want to receive Verify the item quantity Verify the UOM. 8.

13. 15. 2005. Enter M2 Boston as the Location. All rights reserved. Save and Close window • • (M) File > Save Verifying the Items are in Inventory 17. 11i Issue and Transfer Material Chapter 9 . Verify FGI is the subinventory. Select the Item to receive. 16.Page 48 . 14. • • • l a n r e t n I e l c a r O Find your item View the Receipt Headers Summary (M) File > Close Form ly n O e s U I A O & (N) Transaction > Receiving > View Receiving Transaction Copyright © Oracle Corporation. Verify the transaction processed.

Chapter 9 .Page 49 . 2005. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.• • Select Transactions Verify the transaction receipt and delivery. All rights reserved.

Close the window.18. Chapter 9 . • (M) File > Close Form. 2005. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.Page 50 .

For more information on returns. refer to the Online Help: (Help) Oracle Manufacturing Applications > Oracle Purchasing > Receiving > Returns l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. then return the part to the customer. a customer returns to your company a part that does not work properly. You can use the Receiving Returns window to return items back to a customer.Page 51 . All rights reserved. 11i Issue and Transfer Material Chapter 9 . If the Quality module is installed. You receive and fix the part. Use the Receiving Returns window to return delivered items to Receiving and to return received or delivered externally sourced items to the Supplier if the purchase order has neither been cancelled nor final closed.Returns to Receiving Returns Oracle Purchasing allows you to perform returns to suppliers and returns to customers in the Receiving Returns window. For controlled items. Note: You cannot enter returns for internal shipments. serial numbers or locators as appropriate. you can enter quality information. 2005. you must specify lot numbers. For example.

Chapter 9 .Returns to Inventory l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 52 . 2005. All rights reserved.

You can update the Return From subinventory for Inventory deliveries. 2005. You can specify additional return information such as Reason Code and RMA Number and a lot and serial information. if required. 11i Issue and Transfer Material Chapter 9 . You cannot perform a Return To Supplier transaction against a Finally Closed or Cancelled purchase order. purchased the wrong item. Oracle Purchasing reopens the associated purchase order for the return quantity by reducing the original receipt quantity. or have excess inventory. You cannot update the Return From information for Expense and Shop Floor deliveries.Entering Returns Receiving Returns (Oracle Purchasing) You can return both received and delivered items to the source supplier when you experience quality problems. All rights reserved. Return to Supplier Transaction History l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Purchase Order Effects When you perform a Return To Supplier transaction. Oracle Purchasing populates the Return To field with the source supplier for your items. Specifying Return to Supplier Details You can choose the Return To Supplier action and enter the quantity you want to return.Page 53 .

2005. Chapter 9 . and return ten items to their supplier.When you perform a Return To Supplier transaction. All rights reserved. Oracle Purchasing constructs your transaction history as follows: Receive 10 Deliver10 Step 1 Return to receiving 10 Step 2 Return to supplier 10 (Help) Oracle Manufacturing Applications > Oracle Purchasing > Receiving > Entering Returns l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. deliver. For example.Page 54 . if you receive. Oracle Purchasing automatically creates both a Return To Receiving and a Return To Supplier transaction.

All rights reserved. Chapter 9 .Guided Demonstration Overview: Receiving Returns to Inventory l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 55 . 2005.

All rights reserved. 16. 11i Issue and Transfer Material Chapter 9 . Select M1 Seattle as the receiving location. 3. (M) File> Save. Choose Find. Enter the RMA number. Choose Transactions. Vision Operations USA Receiving Returns 1. 9. (T) Customer. Select the subinventory from the list of values. 11. 10. (T) Customer. 2. 13. 6. Viewing Returns (N) Transactions > Receiving > View Receiving Transactions 12. 15. 7. 5. (N) Change Organization. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. − M1 Seattle Manufacturing (N) Transactions > Receiving > Receipts. 4.Page 56 . Choose Find. (M) File > Close Form. 2005.Receiving Returns Responsibility: Inventory. Close the Receipt Header Verify the receipt information.Guided Demonstration . 8. 14. Enter the Item number. (M) File > Close Form.

All rights reserved. 2005.Page 57 .Agenda l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 9 .

2005. refer to the Online Help: (Help) Oracle Manufacturing Applications > Oracle Purchasing > Reports and Processes ./ Overdue Supplier Shipments Report l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved..Receiving Reports Further Help For more information on expected receipts or overdue supplier shipments. 11i Issue and Transfer Material Chapter 9 ../ Expected Receipts Report .Page 58 .

Page 59 . Chapter 9 .Agenda l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005. All rights reserved.

the Move Order is in backorder and the unsourced balance can be re-released at a later time.to replenish forward pick locations Move orders will be manually or automatically generated. Move instructions can now be issued for available quantities either through printing of a paper pick slip or transmission to a mobile device through Move Order APIs. If the material could not be fully sourced because of a lack of available quantity.to refill depleted inventory locations • Pick Release Move Orders . Oracle Order Management automatically creates them to support the staging of Picking Waves. This process is called Allocating. 11i Issue and Transfer Material Chapter 9 . 2005.to relocate material or adjust perpetual inventory records • Inventory Replenishment Move Orders . or used to identify shortages for further action. All rights reserved.Page 60 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. and must occur for all move orders. depending on the source of the transaction. Move orders must be assigned detailed source and destination locations. Move Orders can be one of the following three types: • Requisition Move Order .Move Orders Process Flow Move Order Requisition Process Flow Move orders can be created manually or automatically.

If no planner is specified for the item. 2005. All rights reserved. After one timeout period. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. the requisition line is automatically approved. When the requisition is created. set the Timeout Period to 0 and the timeout action to Approve Automatically. If no approvals are required in your organization. These inventory parameters do not override any periods set up by Oracle Workflow. Timeout Period is an organization-level attribute that determines the number of days the order can wait for an approval action. Oracle Inventory manages the approval process through Oracle Workflow. The Move Order Timeout Period and Timeout Action are both inventory organization parameters. 11i Issue and Transfer Material Chapter 9 . The Item Planner is an item attribute. if the order is still not approved or rejected.Page 61 . a reminder notice is sent to the item planner.Move Order Requisition Approval Process Move Order Approvals If approvals are required on Move Order requisitions. the workflow approval process sends a notification to the item planner that a move order requisition line is awaiting approval. After another timeout period the order is automatically approved or rejected depending on the move order timeout action you determine at the organization level.

Chapter 9 . All rights reserved.Page 62 .Once the order line is approved. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005. notices are sent to a notification list that is attached to the source and destination subinventories to let the subinventory planners know that material will be moved to or from their areas. Note: Replenishment and pick wave move orders are pre-approved.

The following are the benefits of managed material flow through move orders: • Quick Response .You can now request a transaction and forward the request on to a picker for actual transaction execution.Benefits of Managed Material Flow in a Facility Benefits of Managed Material Flow Oracle Inventory uses move orders to distinguish the user roles that should manage inventory levels from those who carry out actual transactions.Move orders use inventory picking rules to determine where to source material for a subinventory or Move Order Issue. giving you better material l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. lots. APIs enable you to use mobile devices to transact. The request is tracked in Oracle Inventory to minimize inaccurate information transfer. When required. All rights reserved. This ensures that the same mechanisms created to rotate material properly for deliveries is used to rotate material within the facility. • Warehouse Visibility . replenishment mechanisms automatically generate move orders without the intervention of an item planner for simple cases where the material is drawn from within the facility. 11i Issue and Transfer Material Chapter 9 . It also uses the material visibility in Oracle Inventory to automatically suggest source locations. • Tracking .Move orders can be transacted through Application Program Interfaces (APIs). This results in faster inventory replenishment with minimal human intervention.Page 63 . 2005. and so on.

Page 64 . All rights reserved.visibility and accuracy. Chapter 9 . 2005. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Move orders can also be created to cross-dock material to staging locations.

You can generate requests for subinventory transfers or move order issues. The requisition can optionally go through an Oracle Workflow approval process before it becomes a move order. the requisition becomes a move order immediately. the final result is one of the two supported transactions: subinventory or move order issue. If no approval process is used. Move Order Requisition The requisition is a manually generated request for a move order. or by min-max planned items where the item’s replenishment source l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.Move Order Source Types Move Order Source Types Oracle Inventory provides three types of move orders: • Move Order Requisitions • Replenishment Move Orders • Pick Wave Move Orders The move order type refers to the entity that created the move order.Page 65 . 11i Issue and Transfer Material Chapter 9 . kanban cards can create a replenishment move order where the pull sequence calls for a subinventory transfer (intraorganization kanbans). For all move orders. 2005. For example. Replenishment Move Order These move orders are generated automatically.

Note that the source subinventory must be set up at the item subinventory level. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. • If the replenishment source is a subinventory then a replenishment move order is created. Pick Wave Move Order The pick release process generates move orders to bring the material from its source location in stores to a staging location. 2005. the pull sequence source type must be set to Intra-org. For kanban to generate a move order. then an internal requisition is created. and pick slips can be printed for warehouse users. or to move the material to the backflush locator. For the min-max report to generate a move order. These orders are automatically approved. then a move order requisition is created. Replenishment move orders are pre-approved and ready to be transacted. These move orders are generated automatically by the Oracle Shipping Execution pick release process. the report must be generated at the subinventory level. the min-max or replenishment count report automatically generates a move order. which you define as a subinventory in Oracle Inventory.Page 66 . the picking rules are sued to allocated material for the job. The type of move order generated depends on the replenishment source: • If the replenishment source is a supplier. This process creates move orders to either directly issue the material to WIP. WIP Issue Move Orders An optional process in Oracle WIP allows you to run pick release for the components of a range of jobs or schedules. All rights reserved.(set at the item-subinventory level) is another subinventory. • If the replenishment source is another inventory organization. Chapter 9 . These orders are pre-approved and ready to transact. Pick slips and other shipping and inventory reports will also be available with Oracle. This transaction is a subinventory transfer. In this case.

requested quantity. and a source and destination. 11i Issue and Transfer Material Chapter 9 . if known. The move order header also contains the default source and destination if available.Move Order Components Move Order Components Move Order Header The move order header contains the move order source type. this information is filled in at the line detail level. Move Order Line Details The line details are the inventory transactions that will occur to fulfill a particular request line (move order line). a replenishment type move order.Page 67 . if the organization is project-manufacturing enabled. a requisition for subinventory transfer. This refers to the entity that created the move order. lot-. An order could be a pick wave for sales order picks. Move Order Lines Move order lines are the requests on a move order. They contain the item. You can also enter specific serial or lot numbers on the move order lines. All rights reserved. and so on. the completed quantity (if the move order has been partially fulfilled). or serial-controlled. 2005. the order number. and the requested date. The move order lines also include any project and task references. If the material is locator-. These details are automatically filled in by Oracle Inventory using the l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

Page 68 . l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005. All rights reserved. Chapter 9 .inventory picking rules and the item-transaction defaults for destination locators or you can manually fill in the details. You can edit these details prior to transaction.

You can consider the allocating process as a sourcing process. If the destination subinventory is locatorcontrolled and no locator is specified on the move order line. Allocating occurs when you click the Allocate button in the Transact Move Orders window.Move Order Allocating Allocating Move Orders Allocating is the process in Oracle Inventory that uses picking rules and item transaction defaults to suggest move order line details to fulfill a move order line. Oracle Inventory generates a suggestion based on the item subinventory locator default you set up for move orders. 11i Issue and Transfer Material Chapter 9 . 2005.Page 69 . You can set up a default locator for each item that you want to move around the warehouse on a move order. revisions. All rights reserved. This is not the same default type that you would use for receiving or shipping. The line details are the inventory transactions that must be fulfilled to complete the move order allocation. and lots to source the material in order to fulfill a move order allocation. Suggesting Sources Oracle Inventory uses the picking rules you set up at the organization or organization-item level to suggest source locators. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Suggesting a Destination The picking rules only suggest source locations.

On-hand inquiries will show the material in staging. You can then perform ship confirmation. • Auto allocate .Page 70 . No more human intervention is needed and the pick slip can be printed automatically. Reporting inventory inaccuracies enables you to request a cycle count in the inventory area where the material was not found if so desired. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Oracle Shipping Oracle Shipping provides two choices for when and how you can fill in the line details. Chapter 9 . This option allows warehouse managers to determine when to release the pick to the floor and might be a better solution for implementations running a global order entry with distributed warehouse management and/or shipping. • Manual Pick Confirmation: You can confirm the pick of the move order allocation. • Pick release only creates move orders but does not fill in the line details. All rights reserved. lots or serials and to report shortages or inventory inaccuracies and allow the system to generate more pick suggestions. You must navigate to the move order form after pick release and click on the Allocate button. In these cases.You have two choices in transacting the move orders to transfer the material to the destination location: • Automatic Pick Confirmation: The move order is transacted instantly after the order is allocated without any further human intervention. You can also update any picking details such as the source locations. These choices are made by setting up an organization parameter but can be overridden at pick release.the allocating process is done at pick release instantly after the move order is created. orders can be released to regional warehouses from the central order management location in advance and individual warehouses can schedule picks closer to actual ship time.

source. and other order information. Default fields are not required. In the Default region. A number is defaulted for you if you leave the field without entering a value. In the Item tabbed region. A Move Order Issue is the same as an account issue. quantity. locations. You can set up a default transaction type of either Subinventory Transfer or Move Order Issue.Generate Move Orders Generating Move Order Requisitions You use the Move Orders window to create move order requisitions by specifying item. All rights reserved. You can specify the Move Order Issue for accounts and account aliases. and quantity. The lines are the actual material requests for the move order. You can define a default source subinventory. an order number is required. The approval process does not include dollar amount constraints. revision. you can set up values that default to the lines. destination. for Move Order Issues. and you can update the delivery date for that item. A move order requisition manually requests subinventory transfers or Move Order Issues. as well as the requested delivery date (date required) for the material. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Issue and Transfer Material Chapter 9 . destination subinventory or account. These requests can optionally go through an approval process before they become move orders that are ready to be sourced and transacted. 2005. you can specify the item.Page 71 . For each move order.

You can optionally specify a reason and reference code on the inventory transactions. Defining Destination Information You use the Destination tabbed region to specify the subinventory or account for Move Order Issues that the material should be delivered. the On Hand button takes you to an on-hand inquiry window for that item to locate the material within your organization. and serial numbers if known to use for the transactions. Defining Control Information You use the Control tabbed region to request a subinventory transfer or Move Order Issue at the line level by selecting a transaction type. If you do not know from where the items should come. (Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Overview of Move Orders . 2005.Page 72 . / Generating Move Order Requisitions . lot. you specify the project and task in the Project and Task tabbed region.. You can also specify the destination locator for subinventory transfer move orders if known./ Generating Replenishment Move Orders l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. This field defaults from the header-level default block but can be overridden if necessary. This field defaults from the header-level default block but can be overridden if necessary.Defining Project and Task Information If the organization is a project manufacturing-enabled organization. This field defaults from the header-level default block but can be overridden if necessary.. Defining Source Information You use the Source tabbed region to specify the subinventory from which to draw the material. Chapter 9 . You can also specify the locator. Only the subinventory field is required. All rights reserved.

Neither reserved material nor a pending transaction quantity is included in any availability calculation for the source location. but the picker has not yet indicated that they have deposited the material in the destination location. A reservation is used to earmark your inventory for a particular use. You should not allocate a move order line too soon in the business process. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Move order line details are an example of the pending transaction. All rights reserved. Allocating should not be done until you are ready to print the pick slip and move the material. is matched with a demand source such as a sales order. In the reservation table.Page 73 . 11i Issue and Transfer Material Chapter 9 . such as on-hand inventory.Item Allocation Allocating Items Reservation A reservation is a line in the inventory reservations table. supply. because the allocating process for a move order creates pending transactions and removes that quantity from an availability picture. Pending Transaction A pending transaction is a transaction that Oracle Inventory expects to occur shortly. This is a material pick that has not yet been completed. A pick slip may have already been printed. but confirmation of the transaction has not yet been recorded. 2005.

(Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Overview of Move Orders > Transacting Move Orders l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. you can commit all of the transactions for a single move order line by selecting the lines you want to transact and clicking the Transact button. You can save and exit the move order line details without transacting if you need to print a pick slip report.Page 74 . Transacting move orders will post all movement activity immediately for the selected move order line and its related details. 11i Issue and Transfer Material Chapter 9 . Transact Once the lines have been allocated. view the move order line details. transact move order allocations. All rights reserved. This enables you to transact each detail line before or after picking the material.Transact Move Orders Transacting Move Order Lines Use the Transact Move Order Line Allocations window to view. allocate. 2005. and transact move order allocations.

Guided Demonstration Overview: Transacting Move orders l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 75 . Chapter 9 . All rights reserved.

4. 6. Vision Operations USA Create an Item 1. Choose Apply. Use the following information to enable the Locator Control attribute: − Locator Control: Dynamic Entry (M) File > Save. 8. Enable item CM11445 in the following organizations: − M1 Seattle − M2 Boston 12. (T) Inventory.Page 76 . 13. 2005. Create an Item using the following information: − Item: CM11445 − Description: Mother Board (M) Tools > Copy from.Guided Demonstration . 7. (M) File > Save. 5. 11i Issue and Transfer Material Chapter 9 . (N) Items >Master Items. (N) Transactions > Miscellaneous Transaction 15. Receive the Item 14. 10. 9. Choose Done. Enter Finished Good in the template field. 11. Choose Transaction Lines l a n r e t n I e l c a r O ly n O e s U I A O & 17. (M) File > Close Form. All rights reserved.Transacting Move Orders Responsibility: Inventory. 2. (M) Tools > Organization Assignment. Use the following information to complete a miscellaneous receipt: Copyright © Oracle Corporation. 3. Enter the following transaction information: − Type: Miscellaneous Receipt − Account: Miscellaneous 16.

26. (M) File > Close Form. Choose Approve. 11i Issue and Transfer Material Chapter 9 .Page 77 . All rights reserved. (M) File > Save.2.1 500 18. 19.1. Use the following information to generate a move order: − Number: 001 − Description: Mother Board Move Order − Transaction Type: Move Order Transfer − Source Subinventory: FGI − Destination Subinventory: Stores − Item: CM11445 − Quantity: 200 22. 25. 27. 29. (N) Move Orders > Transact Move Orders.2 28. 2005. Choose View / Update Allocations. Generate Move Order 20. (M) File > Close Form.2. Use the following information to update the move order: − Source Subinventory Locator: 1.− − − − Item: Subinventory: Locator: Quantity: CM11445 FGI 1. 23. Find move order 001. Choose Transact. (M) File > Close Form. (N) Move Orders > Move Orders 21. Transact Move Orders 24. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.1 − Destination Subinventory Locator: 1.

Page 78 . Chapter 9 . 2005.Practice Overview: Transacting Move orders l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

Practice . and make changes such as locator control. M2 Receive your item Create a miscellaneous receipt for 500 pieces of your item and receive them into at least two locators of your ##FGI subinventory.Transacting Move Orders Overview In this practice you will generate and transact move orders. 11i Issue and Transfer Material Chapter 9 . When complete transact your move order. Tasks Create an Item Create an item using the following information.Page 79 . All rights reserved. Create a Move Order Create a move order for your item and move 10 pieces from the ##FGI subinventory to the FGI subinventory using the following information: − Number: ##-1 − Description: Team ## Move order − Transaction Type: Move Order Transfer − Item: ##-1234 Transact Move Order l a n r e t n I e l c a r O ly n O e s U I A O & Verify your move order. − Name: ##-1234 − Template: Purchased Item − Locator Control: Dynamic Entry − Organizations: M1. 2005. Assumptions • • • • • You are skilled in Oracle navigation You completed the Define Items practice You completed the Locator controls practice You completed the define subinventory practice You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Copyright © Oracle Corporation.

Chapter 9 .Verify the Results Verify your transaction was processed. 2005.Page 80 . l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

3. Vision Operations USA 1. All rights reserved. Select Apply. Select the Purchased Item Template from the LOV.Page 81 .Solution – Transacting Move Orders Create an Item Responsibility = Inventory. Chapter 9 . 2005. (N) Item > Master Items Define an item using the following information: − Name: ##-1234 − Description: Move Order Item Apply the Purchased Item template • • • • (M) Tools > Copy From. • 2. Select Done. Navigate to the Master Item window. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.

4. • (M) File > Save. Assign your item to organizations M1 and M2. • (T) Inventory − Locator Control: Dynamic Entry 5. ly n O e s U I A O & Copyright © Oracle Corporation. l a n r e t n I e l c a r O Enable item in M1 Seattle and M2 Boston. 6. Save your work. 11i Issue and Transfer Material Chapter 9 . • • (M) Tools > Organization Assignment. All rights reserved.Page 82 . Enable Inventory Control. 2005.

Page 83 . − Item: − Subinventory: − Locator: ##-1234 ##FGI ##. Receive Your Item 8. 2005. Receive 500 pieces of your item into stock. • • (M) File > Save.1.1 − Quantity 250 Copyright © Oracle Corporation. (M) File > Close Form. All rights reserved. • (N) Transactions > Miscellaneous Transaction − Type: Miscellaneous Receipt − Account: Miscellaneous (From LOV) • • l a n r e t n I e l c a r O Select Transaction Lines.7.2 ly n O e s U I A O & Enter the following information in the subsequent fields: − Item: ##-1234 − Subinventory: ##FGI − Locator: ##. Save and Close window.1. 11i Issue and Transfer Material Chapter 9 .

Define a Move Order Using the following Information: − Number: ##-1 − Description: Team ## move order − Transaction Type: Move Order Transfer − Source Subinventory: ##FGI − Item: ##-1234 − Quantity: 10 l a n r e t n I e l c a r O (N) Move Orders > Move Orders ly n O e s U I A O & Copyright © Oracle Corporation. Save and Close window. Navigate to the Move Order window. • 11. • • (M) File > Save. Create a Move Order 10.− Quantity 250 9.Page 84 . 11i Issue and Transfer Material Chapter 9 . All rights reserved. 2005. (M) File > Close Form.

2005. Chapter 9 .Page 85 .12. (T) Destination. − Subinventory: FGI l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

(M) File > Close Form. • (N) Move Orders > Transact Move Orders 15. 2005. • • Choose Approve.13. Save and Close window. • • l a n r e t n I e l c a r O Numbers: ##-1 Choose Find.Page 86 . 11i Issue and Transfer Material Chapter 9 . ly n O e s U I A O & Copyright © Oracle Corporation. Navigate to the Transact Move Orders window. All rights reserved. Find your move order. Transact Move Order 14.

All rights reserved. • • Select View/Update Allocations Verify/Update the following: − Subinventory: ##FGI − Locator: ##.2.Page 87 . Update your Move Order. Chapter 9 .1 − To Subinventory: FGI − To Locator: 1.16.1 − Quantity: 10 l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005.1.

18. (M) File > Close Form Verify the Results 19. Chapter 9 . • (N) On-hand. Availability > On-hand Quantity − Subinventory: FGI − Locator: 1. Choose Transact.17. View the results to verify the transaction processed. All rights reserved.2.1 − Item: ##-1234 l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 88 .

Chapter 9 . All rights reserved.Page 89 . 2005. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.• Select Find.

(M) File > Close Form. All rights reserved.Page 90 . 2005. Chapter 9 .20. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.

All rights reserved. 2005.Agenda l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 91 . Chapter 9 .

All rights reserved. You can perform the following transactions: • Miscellaneous Receipt • Alias Receipt • Inventory Issues • Subinventory Transfers • Move Orders • Organization Transfers • PO • RMA • Intransit Shipment • Internal Requisition • Receipts • Sales Orders l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Page 92 .Transactions Using a Mobile Device Transactions Using a Mobile Device You can perform inventory transactions using a mobile device. 2005. 11i Issue and Transfer Material Chapter 9 .

Chapter 9 .Page 93 . 2005.• • • Internal Order Shipments Cycle Count Physical Inventory Entries l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

Guided Demonstration Overview: Mobile Transactions l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 94 . 2005. Chapter 9 . All rights reserved.

If there is more than one responsibility assigned to your user name. Select Org Transfer. 12. Enter M1 as the Org code. Enter AS18947 as the item to ship.Mobile Application Inter-organization Transfer 1. select Materials & Mfg from the Responsibilities list.oracle. Select Inventory from the Materials & Mfg menu. 2005. 15. 10. Chapter 9 . where xxxx is the instance number. 6. 8. Note that the responsibility. 13. Select Transfers. Enter M2 as the To Org. Enter 001 as the shipment number. 4. Enter Intransit Shipment as the transaction type. 11.Page 95 . 9. 7. Enter 5 as the quantity to transfer. 2. Select Done. “Materials & Mfg” must be assigned to your user name. Enter telnet esxxxx. 3. All rights reserved. Select Default from the Device List.com 7070 in the Windows Run dialog box. l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Guided Demonstration . Enter FGI as the from subinventory 14. Enter your user name and password. 5.

Practice Overview: Mobile Transactions l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 96 . 2005. Chapter 9 . All rights reserved.

Assumptions • You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. All rights reserved.Practice . Tasks Interorganization Transfers Using the Mobile Interface Use the Mobile interface to conduct an interorganization transfer using the following information: − From Organization: M1 Seattle − To Organization: M2 Boston − Item: your choice − Quantity: 5 l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 97 . Chapter 9 .Mobile Transactions Overview In this lab you will transfer items from one organization to another.

− Windows Start menu > Run − Enter telnet esxxxx. Start the Telnet session.oracle.com 7070 in the Run dialog box. Enter your user name and password. 3. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Note that “Materials & Mfg” responsibility must be assigned to your user name. where xxxx is the instance number. 2005. 2. All rights reserved.Page 98 . 11i Issue and Transfer Material Chapter 9 .Solution – Mobile Transactions Interorganization Transfers Using the Mobile Interface Responsibility = Materials & Mfg 1. Select Default from the Device List.

then select Materials & Mfg from the list. If more than one responsibility had been assigned to your user name.4. Select Inventory from the Materials & Mfg Menu. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Issue and Transfer Material Chapter 9 . 5.Page 99 . 2005. All rights reserved.

2005. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 7.Page 100 . Select Transfers from the Inventory Menu. All rights reserved.6. 11i Issue and Transfer Material Chapter 9 . Select Org Transfer from the Transfers Menu.

Enter your item to transfer using the following information: − Org Code: M1 − To Org: M2 − Trx Type: Intransit Shipment − Shipment Number: ## − Item: Your Choice − From Sub: ##FGI − Quantity: 1 − To Sub: Stores l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 101 . Chapter 9 . All rights reserved. 2005.8.

Select Done Note: Use the down arrow to advance to Done. Chapter 9 .Page 102 .9. 2005. 10. Select Logout l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

All rights reserved.Page 103 . 2005.Agenda l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 9 .

2005. or system levels. organization. Oracle Purchasing updates Shipment Supply to reflect the new due date.Page 104 . Packing Slip. If you change the Expected Receipt Date. All rights reserved. 11i Issue and Transfer Material Chapter 9 . • Shipment Lines: You can update information pertaining to the shipment lines such as Expected Receipt Date. • Shipment Header: You can update information pertaining to the shipment header such as Ship-to Location and Number of Containers.Managing Shipments Managing Shipments (Oracle Purchasing) You can review and update intransit shipments between inventory organizations. • Shipment Visibility: You can access all incoming and outgoing shipments associated with the current organization. Receipt Routing. and Note to Receiver. (Help) Oracle Manufacturing Applications > Oracle Purchasing > Receiving > Managing Shipments l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. The receipt routing that you specify in Maintain Shipments overrides routings specified at the item.

Page 105 . 2005.Agenda l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 9 . All rights reserved.

Summary l a n r e t n I e l c a r O 11i Issue and Transfer Material ly n O e s U I A O & Copyright © Oracle Corporation.Page 106 . All rights reserved. 2005. Chapter 9 .

All rights reserved. Chapter 10 .11i Replenishment Concepts Chapter 10 l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation.Page 1 . 2005.

Page 2 . 2005. All rights reserved. Chapter 10 .11i Replenishment Concepts l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation.

Chapter 10 . All rights reserved.Objectives l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 3 .

All rights reserved. 2005.Agenda l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 10 .Page 4 .

Overview Course Overview This module provides an overview of Oracle Inventory forecasting and replenishment methods.Page 5 . l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 10 . All rights reserved. (Help) Oracle Inventory > Inventory Planning and Replenishment > Overview of Inventory Planning and Replenishment > Forecasting. 2005.

2005. and indirectly with Oracle Order Management. 11i Replenishment Concepts Chapter 10 . you can set up the following types of inventory replenishment plans: • Min-max planning • Reorder-point planning • Kanban replenishment planning • Replenishment counting (for non-quantity tracked subinventories) After you select the replenishment method that you want to use. Oracle Inventory planning interfaces with Oracle Purchasing. Oracle Inventory concurrent programs populate the requisition interface. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Overview of Inventory Planning Overview of Oracle Inventory Inventory planning involves answering two questions: • When should you place a new order? • How much should you order? Using the Oracle Inventory application. All rights reserved.Page 6 .

you should consider the following: • Order time • Order size • Planning method When to Order Typically. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Demand represents the need for a particular item.Page 7 .Order Planning Replenishment Considerations Before you replenish your inventory. All rights reserved. 2005. 11i Replenishment Concepts Chapter 10 . you should order when the on-hand quantity plus incoming supply minus demand is less than the specified minimum inventory level. On-hand quantity refers to what you currently have in stock. Supply represents on-hand stock plus inventory coming into the organization.

you should order a quantity that balances the cost of placing an order with the cost of managing inventory while covering expected demand. All rights reserved. l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation. you can create a requisition to replenish inventory from another organization or a supplier. Note: Suppliers may have minimum order quantities. After you determine the amount to order.Page 8 .How Much to Order How Much to Order Ideally. Chapter 10 . 2005.

2005. Chapter 10 . All rights reserved.Page 9 .Replenishment Process for Intra-Org Supply Sources l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation.

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Overview of Oracle Inventory Forecasting

Inventory Planning and Forecasting Forecasts generated by Oracle Inventory are based on historical transaction activity only. When creating a forecast, you can select the type of transactions that you want to use. You can also specify how far into the future that you want to forecast demand. After you complete a forecast, you can use it to determine reorder-point planning. You can also load forecasts into the master schedule, which is a component of the Oracle Material Requirements Planning (MRP) application. Note: You can manually create forecasts using Oracle Inventory or Oracle MRP. There are no constraints for manually created forecasts. So, manually created forecasts can be based on transaction activity other than historical data.

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Forecast Types

Forecast Types Forecast generation uses mathematical algorithms to calculate a prediction of future demand. You can calculate estimated future demand for items using historical data and focus or statistical forecasting techniques. You can create multiple forecasts and group complementing forecasts into forecast sets. Oracle Inventory supports the following forecast types: • Focus • Statistical Focus forecasting enables you to simulate various methods of calculating demand so that you can select the best forecasting model. Statistical forecasting enables you to use detailed history and applies weighted factors to exponentially smooth the data. Statistical forecasting also enables you to apply exponentially weighted trend and seasonality factors to predict demand. You typically use Focus forecasting to produce single period forecasts, whereas you can use Statistical forecasting to forecast any number of periods into the future.

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All rights reserved. 11i Replenishment Concepts Chapter 10 . 2005.Page 17 . you can set up specific replenishment methods to help you decide the size. and amount to order. timing. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Oracle Inventory Replenishment Methods Oracle Inventory Replenishment Methods With Oracle Inventory. Oracle Inventory supports the following replenishment methods: • Reorder-Point-planning • Min-Max planning • Kanban replenishment • Replenishment counting For more information see: (Help) Inventory Planning and Replenishment > Overview of Planning and Replenishment.

you can perform replenishment planning at the organization or subinventory level. 2005.Replenishment Methods Levels Oracle Inventory Replenishment Methods (continued) Based on the replenishment method that you select. Also Periodic Automatic Replenishment which is a type of Replenishment Counting is also done at the locator level. All rights reserved. Note that Kanban is done at the locator level. The table in the slide summarizes the levels at which you can perform a specific replenishment method. 11i Replenishment Concepts Chapter 10 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Page 18 .

Page 19 . l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 10 . 2005. the item is planned as if the safety stock quantity for the period is the zero inventory balance of the item. This ensures that the safety stock quantity remains in inventory to cover any fluctuations in demand.Safety Stock Safety Stock Safety Stock is a base level of inventory from which Oracle inventory performs planning. All rights reserved. In other words.

l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation.Page 20 . The intent is to minimize the combined costs of acquiring and managing inventory. Chapter 10 . All rights reserved. 2005.Economic Order Quantity Economic Order Quantity The economic order quantity (EOQ) is a type of fixed order quantity that determines the amount of an item to be purchased or manufactured at one time.

2005. the onhand quantity should equal the safety stock. You can use reorder-point planning for items under independent demand. you order a quantity when the quantity falls to a predetermined reorder-point. That is. All rights reserved. with reorder-point planning. you can specify reorder-point planning as the inventory planning method. demand for items (or materials) that are independent of the demand for other items (or materials). Safety stock typically provides a buffer from which to fill orders between reorder-points. This projection is then used to decide whether or not the reorder-point has been reached. At the end of the lead time. For more information see: (Help) Oracle Inventory > Inventory Planning and Replenishment > Overview of Reorder Point Planning. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. You perform reorder-point planning for the entire organization.Page 21 . The essential feature of reorder-point planning is that it projects what the stock level will be— based on forecast demand and no visibility of sales orders—at the end of the item's lead time. When you define an item. 11i Replenishment Concepts Chapter 10 . The reorder-point is calculated by adding expected demand during lead time to safety stock.Overview of Reorder-Point Planning Reorder-Point Planning Overview As shown in the graphic. Ideally it is best to reorder at some point before inventory levels fall into the safety zone.

you must specify organization-level minimum and maximum quantities. Min-max planning is typically used to control low value inventory items that do not need great control. For more information see: (Help) Oracle Inventory > Inventory Planning and Replenishment > Overview of Min-Max Planning.Page 22 . you can perform min-max planning at the both the organization and the subinventory levels. you must specify subinventory-level minimum and maximum quantities. min-max planning is not based on demand projections and does not consider lead time. With Oracle Inventory. 2005. To perform subinventory-level min-max planning for an item. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. In contrast to reorder-point planning. All rights reserved. To perform organization-level min-max planning for an item. 11i Replenishment Concepts Chapter 10 .Overview of Min-max Planning Min-max Planning Overview Min-max planning is a method of inventory planning that determines how much to order based on user-defined minimum and maximum inventory levels.

A kanban system is a self-regulating pull system that leads to shorter lead times and reduced inventory. Kanban System Features Kanban systems include the following characteristics: • Close cooperation between the users and the supply channel • Short re-supply lead times • Relatively small quantities reordered at a time • Relative frequent ordering l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. or an empty bin that is moved to the supply location to trigger replenishment.Overview of Kanban Replenishment Kanban Replenishment Kanban is a means of supporting pull-based replenishment in manufacturing systems. a light that goes on when replenishment is required. Kanban systems typically provide support for external devices.Page 23 . All rights reserved. 11i Replenishment Concepts Chapter 10 . 2005. such as bar code readers to read kanban cards and trigger a replenishment signal. Kanban systems are typically applied to items with relatively constant demand and medium-to-high production volume. such as a colorcode card that moves with the material. Kanbans represent replenishment signals that are manual and highly visible.

For more information see: (Help) Oracle Inventory > Inventory Planning and Replenishment > Overview of Kanban Replenishment. 2005.Page 24 . l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. Chapter 10 .

In this case you may order either a specific quantity or the maximum quantity specified in the MinMax values. A non-tracked subinventory is an expense subinventory for which Oracle Inventory does not maintain on-hand quantity information. You can also use replenishment counting if you do your own planning. where there is no opportunity to record accurate and timely issue-transaction information. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Overview of Replenishment Counting Replenishment Counting Replenishment counting enables you to perform counts for non-tracked subinventories and then direct Oracle Inventory to check these counts against the minimum quantities that you specified. When you move valued material to a non-tracked subinventory. Non-tracked subinventories might include hospital storerooms. Non-tracked subinventories typically store items of low value. Oracle Inventory automatically charges the appropriate expense account and discards that quantity. 11i Replenishment Concepts Chapter 10 . such as office stationery. 2005. All rights reserved.Page 25 . For more information see: (Help) Oracle Inventory > Inventory Planning and Replenishment > Overview of Replenishment Counting.

Overview of PAR Counting Periodic Automatic Replenishment (PAR) Counting PAR counting is replenishment counting done at the locator level in a subinventory. Chapter 10 .Page 26 . All rights reserved. 2005. l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation.

Chapter 10 .Agenda l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.Page 27 . 2005.

Mobile Replenishment Count Overview Mobile Device Replenishment Count Oracle Mobile Materials Management provides windows to perform mobile replenishments. 2005. l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation.Page 28 . All rights reserved. Chapter 10 .

Agenda l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation.Page 29 . Chapter 10 . 2005. All rights reserved.

2005.Summary l a n r e t n I e l c a r O 11i Replenishment Concepts ly n O e s U I A O & Copyright © Oracle Corporation.Page 30 . All rights reserved. Chapter 10 .

All rights reserved. 2005. Chapter 11 .11i Replenishment Fundamentals Chapter 11 l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 1 .

All rights reserved. 2005.Page 2 . Chapter 11 .11i Replenishment Fundamentals l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

2005.Page 3 . Chapter 11 .Objectives l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 2005. Chapter 11 .Page 4 .

Chapter 11 .Page 5 . 2005. All rights reserved.Overview l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

Page 6 .Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 11 . 2005. All rights reserved.

Page 7 . a week is used instead of a year in calculating Models 1 and 4. Each method generates a forecast for the current period based on demand from previous periods. When you use daily time buckets.Focus Forecasting Describing Focus Forecasting Methods Focus forecasting simulates five forecast methods to determine the best forecasting model to use. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Fifty-two week years are presumed in yearly calculations with weekly time buckets. 2005. An example of each focus forecast method is shown in this slide and on the following pages. Note: If not using daily time buckets. All rights reserved. focus forecast methods 1 and 4 require at least one year of historical data. 11i Replenishment Fundamentals Chapter 11 . This means that the same week last year is taken to be the week fifty-two weeks before the current week.

Page 8 . 2005. All rights reserved. Chapter 11 .Focus-Forecasting (continued) l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

2005.Focus-Forecasting (continued) l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. Chapter 11 .Page 9 .

then Oracle Inventory uses the forecast of the first period for all of the forecast periods in the request. All rights reserved.Page 10 . If actual demand is available for the current period. The APE is the difference between the actual demand and the forecast associated with the actual demand. Oracle Inventory selects the model with the smallest APE to calculate the current period forecast. 11i Replenishment Fundamentals Chapter 11 . If you request a focus forecast for multiple periods. You calculate the APE using actual and forecast demand. The following formula determines the APE: APE = ( |actual demand . then you can recompile the focus forecast to update the forecast.Using Focus Forecasting Determining the Best Forecast Method The system uses the absolute percentage error (APE) to determine the best forecasting method to use. 2005.forecast demand| ) / actual demand Note: Focus forecasting provides a one-period forecast. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

select the the focus forecast method that yielded the smallest APE. to determine the best forecast model to use. 3 and 5.Focus Forecasting Example Example of Focus Forecasting To evaluate which forecasting model produced the best forecast. to forecast demand for April 2001.Page 11 . the absolute percentage error (APE) is calculated for the five forecasts. 11i Replenishment Fundamentals Chapter 11 . Forecast = actual demand in the same period last year × (actual demand in the previous period this year / actual demand in the previous period before the same period last year) Calculating the Forecast and APE for Model 4: March 2001 = March 2000 × (February 2001 / February 2000) = 250 × (255 / 210) l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 2005. you would first calculate the forecast and APE for March 2001 for each of the five focus forecasting methods. The forecast model with the smallest APE is then chosen to calculate the forecast for the next period. In this example. All rights reserved. Note: This example shows the calculation for Method 4 only. 2. because the APE associated with this forecast is only 5 percent compared to the higher APEs for Models 1. Then. last period. Forecast Model 4 represents the best model for March of 2001.

6000 or 302 Note: Results have been rounded to the nearest whole number.05 or 5% Calculating the Demand Forecast for April 2001: Because 5% is the smallest error of the five models. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 12 . April 2001 = April 2000 × (March 2001 / March 2000) = 260 × (290 / 250) = 301. you would select Model 4 to calculate the April 2001 forecast. All rights reserved.forecast demand |) / actual demand = (|290 . 2005.= 303. rounded to 304 APE for model 4: APE = (| actual demand .57142. Chapter 11 .304|) / 290 = 0.

Statistical Forecasting l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 13 . All rights reserved. Chapter 11 . 2005.

At-1 of 270. At-1.Exponential Smoothing Forecast (ESF) Describing the Exponential Smoothing Forecast (ESF) Exponential smoothing uses the forecast from the prior period and adds an adjustment to obtain the forecast for the next period. All rights reserved. The alpha factor. The larger the alpha factor. This forecasting method weighs more recent data to give it greater influence over the forecast results than older data. So the forecast for period 9 for the assumed values of á. Example of Exponential Smoothing Forecasting This example shows the ESF calculations for a 9-step ahead forecast assuming an alpha (á) value of 0. You can calculate the current period forecast by using a weighted average of the most recent and forecasted demand.Page 14 . and ESFt-1 is: ESFt = α × At-1 + (1 . You can use this method when trend or seasonality patterns do not exist. demand is forecast by averaging all of the past periods of actual demand. also called the smoothing constant.2. plus a portion of the forecast error from the previous period. and ESFt-1 of 288. the less impact the older data has on the new forecast. The current forecast is equal to the old forecast.α) × ESFt-1 l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. is multiplied by the forecast error to determine the adjustment. With ESF. 11i Replenishment Fundamentals Chapter 11 . 2005. You can specify an alpha factor between zero and one.

ESF9 = 0.2) × ESF8 = 0.8 × 288 = 284. Chapter 11 . All rights reserved.2 × 270 + 0.Page 15 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.4 Note: ESF always lags behind the trend by at least one period.2 × A8 + (1 – 0. 2005.

With the trend-enhanced forecast. Example of Trend-Enhanced Forecasting This example shows the effect of adding the trend enhancement to the ESF calculation. you can reflect the current trend in a forecast. 11i Replenishment Fundamentals Chapter 11 . but also considers the trend (β).Page 16 . 2005.2 l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. you can use the trend-enhanced forecast to estimate the amount of persistent change in basic demand from period to period. TEF is based on the exponential smoothing factor (α).Trend-Enhanced Forecast (TEF) Describing the Trend-Enhanced Forecast (TEF) For longer-range forecasts. All rights reserved. The trend-enhanced forecast for period 9 is derived by performing the following calculations: • Determining base value • Updating the trend index • Adding the two for the current period trend-enhanced forecast This example shows the TEF calculations for a 9-step ahead forecast for the following assumed values: • α = 0. Both the exponential smoothing and trend values closer to zero are weighted towards the past trend and values closer to one are weighted more heavily towards the current trend.

1 A8 = 270 • TEF8 = 306 • B8 = 287 • • R8 = 19 Determining the Base Value Bt =α × At-1 + (1 – α) × TEFt-1 B9 = 0.0.Bt-1) + (1 .8 × 306 = 298. Chapter 11 .2) × TEF8 = 0.9 × 19 = 18.1) × R8 = 0.2 × A8 + (1 – 0.β = 0.1 × (B9 .28 = 317. 2005.2 × 270 + 0.B8) + (1 .8 + 18. All rights reserved.β) × Rt-1 R9 = 0. TEFt = Bt + Rt TEF9 = B9 + R9 = 298.1 × (298.8 Updating the Trend Index Rt = β × (Bt .28.8 and the trend index was 18.28 Adding the Base and Trend Index to determine the Period 9 Trend Forecast Recall that the calculated base value was 298.Page 17 .8 – 287) + 0.08 = Period 9 Forecast • l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

2005. Values closer to zero give more weight to past seasonal indexes. You can use SEF to track changes in demand that result from annual promotions and expected peaks in demand. Example of Season-Enhanced Forecasting With highly seasonal goods such as winter clothing and holiday cards you should take seasonal demand variations into consideration. 11i Replenishment Fundamentals Chapter 11 . This method produces a more consistent pattern of seasonal demand from period to period over the course of the forecast. A seasonality index of 2 indicates that demand during this period is twice the average demand. All rights reserved.5 indicates that demand during this period is half the average demand. you must first enter seasonality indices for each period indicating how much demand during the period is above or below average.Season-Enhanced Forecast (SEF) Describing the Season-Enhanced Forecast (SEF) You can use seasonality indexes to indicate the degree of seasonal variation for a product. An index l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. An index of 0. For example.Page 18 . To do this. you might use SEF to track the demand of children’s clothing purchases at the beginning of the school year versus the demand for children’s clothing at other times of the year. and values closer to one one give more weight to current seasonal indexes. You can specify a seasonality factor to estimate how much demand during the season will be above or below the average demand for the product.

15 Adjust The Last Period’s Seasonality Index St = γ × (At / Bt) + (1 – γ ) × St-1 S8 = 0.2 × (A8 / S8) + (1 – 0.3 × (270 / 238) + 0. 11i Replenishment Fundamentals Chapter 11 . you perform the following calculations: • Adjust the last period’s seasonality index • Calculate the forecast base value • Multiply the forecast base value by the period seasonality index This example assumes the following: • α = 0. 2005.15 = 1. you can calculate period 9’s seasonality index and then forecast for period 10.7 × 1. The base value is then multiplied by the seasonal index for the period being forecasted to produce the season-enhanced forecast (SEF).3 A8 = 270 • • B8 = 238 • S7 = 1.Page 19 .3 ) × S7 = 0. The same kind of logic that is used for adjusting for trend in the TEF is used to adjust for the seasonal variations.56157 × 1.00799 Note: After determining period 9 results.56157 Multiply the Forecast Base Value by the Period 8 Seasonality Index SEFt = Bt × St-1 SEF9 = B9 × S8 = 237.2 • γ = 0.145 Calculate the Forecast Base Value Bt = α × (At-1 / St-1) + (1 – α) × Bt-1 B9 = 0. If the average seasonality index entered is not equal to 1.of 1 means that the demand is average during this period.2) × B8 = 0. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.145) + 0. then Oracle Inventory normalizes the indices so that the average seasonality indices do equal 1.3 × (A8 / B8) + (1 – 0. To determine seasonality index. Demand is first deseasonalized by dividing by the seasonality index for that period and then exponential smoothing is used to produce a new base value.8 × 238 = 237. All rights reserved.145 = 272.2 × (270 / 1.

All rights reserved. Example of Trend.and season-enhanced forecast for period 9. you perform the following calculations: • Calculate the period 8 seasonality index • Calculate the period 9 base value • Calculate the new trend factor l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. B. To calculate the trend. The TSEF uses all three smoothing factors: alpha (α).and Season-Enhanced Forecasting Despite the seasonal adjustments made in the SEF. The TEF and the SEF can be combined to derive a trend.and season-enhanced forecast (TSEF). 11i Replenishment Fundamentals Chapter 11 .and Season-Enhanced Forecast (TSEF) Describing the Trend. As with the season-enhanced forecast. you calculate the new period 8 seasonality index as soon as period 8 actual demand is determined.Page 20 . With TSEF you specify a trend factor as well as a seasonality index. 2005.and Season-Enhanced Forecast (TSEF) The Trend. beta (β ). a trend element may remain in the forecast base.Trend.and Season-Enhanced forecast combines the trend and seasonal methods to incorporate both types of demand. and gamma (γ ).

3 • A8 = 270 • B8 = 255 • R8 = 10 • S7 = 1.1 × (B9 – B8) + (1 – 0. All rights reserved.56197 Calculating the Period 9 Trend.7 × 1.6197 Calculating the New Trend Factor Rt = β × (Bt – Bt-1) + (1 – β) × Rt-1 R9 = 0.9 × 10 = 9.2 × (A8 / S8) + (1 – 0.8 × (255 + 10) = 260.6197 – 255) + 0.and season-enhanced forecast For this example.2 • Trend smoothing constant. α = 0.1) × R8 = 0.2 × (270 / 1.07997 • l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Add the base and trend factors together and multiply by the seasonality factor to get the period 9 trend.15) = 1. 2005.11066) + 0.15 Calculating the Period 8 Seasonality Index St = γ × [At / (Bt + Rt)] + [(1 – γ ) × St-1] S8 = 0.and Season-Enhanced Forecast TSEFt = (Bt + Rt) × St-1 TSEF9 = (B9 + R9) × S8 = (260.3 × [A8 / (B8 + R8)] + [(1 – 0. β = 0.3 ) × S7] = 0. γ = 0.Page 21 .3 × [270 / (255 + 10)] + (0.11066 = 300. assume the following values: • Smoothing constant.1 × (260.6197 + 9.1 • Seasonality smoothing constant.11066 Calculating the Period 9 Base Value Bt = α × (At-1 / St-1) + (1 – α) × (Bt-1 + Rt-1) B9 = 0.56197) × 1. 11i Replenishment Fundamentals Chapter 11 .2) × (B8 + R8) = 0.

l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Replenishment Fundamentals Chapter 11 .Forecast Setup and Maintenance Accessing Forecast Help For an overview about the forecast setup components. Accessing Forecast Setup Help You can find information on forecast rules in the Overview of Forecasting topic. access the online help topic: Overview of Forecasting.Page 22 . The Defining a Forecast topic appears. The Overview of Forecasting topic appears. scroll to the bottom of the Overview of Forecasting topic and click the “Defining a Forecast” link. Follow the instructions provided to set up a forecast. (Help) Oracle Inventory > Inventory Planning and Replenishment > Forecasting. All rights reserved. 2005. To access instructions on how to set up a forecast.

2005. Chapter 11 . All rights reserved.Page 23 .Guided Demonstration Overview: Creating a Manual Forecast l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

Vision Operations USA Creating a Forecast Set 1. 7. 11i Replenishment Fundamentals Chapter 11 . (M) File > Close Form. 4. 8. − Current: 3000 (M) File > Save. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. − Current: 1000 − Item: AS18947 − Date: 1 week in advance − End Date: 2 weeks in advance − Current: 2000 − Item: AS18947 − Date: 2 weeks in advance − End Date: 3 weeks in advance. (N) Planning > Forecasts > Sets Enter the following the information to create a forecast set: − Forecast Set: FG Set − Description: Finished Goods forecast set − Bucket Type: Weeks − Forecast: FGI − Description: Finished Goods forecast (M) File > Save.Guided Demonstration . (N) Planning > Forecasts > Entries (M) View > Find Select the FG Set forecast set. Enter the following forecast entry information − Item: AS18947 − Date: Today’s Date − End Date: 1 week in advance. 2. All rights reserved.Page 24 .Creating a Manual Forecast Responsibility: Inventory. (M) File > Close Form. 9. 3. Setting Up Forecast Entries 5. 6. 10. 2005.

14. Chapter 11 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 2005. 13. 16.Page 25 . (M) File > Save. Choose Bucketed 15.Viewing Forecast Quantities 11. (N) Planning > Forecasts > View Entries 12. (M) View > Find. Select the FG Set Forecast set. (M) File > Close Form.

2005. All rights reserved.Page 26 .Practice Overview: Creating a Manual Forecast l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 11 .

2005. 4500 View Forecast Quantities View the forecast quantities for your forecast.Creating a Manual Forecast Overview In this lab you will create a manual forecast for one of your items. 4000. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Tasks Define a Forecast Set Define a forecast set using the following information: − Forecast Set Name: ##-FSET − Description: Forecast Set for Team ## − Bucket type: Weeks − Forecast Name: ##-FNAME − Forecast Description: Forecast Name for Team ## Enter Forecast Entries Define forecast entries using the following information: − Forecast Item: ##-Item02 − Quantities: 3000. 2000.Practice . 11i Replenishment Fundamentals Chapter 11 . All rights reserved. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. 2500.Page 27 . Assumptions • • • You are skilled in Oracle Navigation You completed the define items lab. 2000.

Page 28 . (N) Planning > Forecasts > Sets Define a forecast set using the following information: − Name: ##-FSET − Description: Forecast Set for Team ## − Bucket type: Weeks Enter the following information in the forecast field: − Name: ##-FNAME − Description: Forecast Name for Team ## 3.Solution – Creating a Manual Forecast Define a Forecast Set Responsibility = Inventory. Save and Close window. 4. Navigate to the Forecast Sets Window. • • (M) File > Save l a n r e t n I e l c a r O (M) File > Close Form ly n O e s U I A O & Copyright © Oracle Corporation. Vision Operations USA 1. All rights reserved. • 2. 2005. 11i Replenishment Fundamentals Chapter 11 .

(N) Planning > Forecasts > Entries Open your forecast set • • • (M) View > Find Select the ##-FSET forecast set Enter your ##-Item02 in the item field. − 3000 − 4000 − 2000 − 2500 − 2000 − 4500 l a n r e t n I e l c a r O 8. 2005. 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Save and Close window. • 6. 7.Page 29 . Enter the following quantities in progressive weeks for the next 6 weeks. Chapter 11 . Navigate to the Forecast Entries window. All rights reserved. and use the LOV for each available date.Enter Forecast Entries 5. Start with the first date field.

Navigate to the Item Forecast Entries window. 11.Page 30 . • l a n r e t n I e l c a r O (M) File > Close Form ly n O e s U I A O & Copyright © Oracle Corporation. Close window. • (N) Planning > Forecasts > View Entries 10. 11i Replenishment Fundamentals Chapter 11 .• • (M) File > Save (M) File > Close Form View Forecast Quantities 9. Open your forecast set • • (M) View > Find Select the ##-FSET forecast set that you created from the LOV. 2005. All rights reserved. 12. Select Bucketed to view your forecast quantities.

2005.Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.Page 31 . Chapter 11 .

2005. • 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. 11i Replenishment Fundamentals Chapter 11 .Page 32 . All rights reserved. • You can use reorder-point planning to decide when to order new quantity before using safety stock.Uses of Reorder-point Planning Uses of Reorder-point Planning • You can perform reorder-point planning for the entire organization. • 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. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

Reorder-point planning uses the following pieces of information: • Safety stock • Replenishment lead time • Item demand • Order cost • Carrying cost Safety Stock: Safety stock is the quantity of an item that you plan to have in inventory to protect against fluctuations in supply and demand. 2005.Page 33 . All rights reserved.Reorder-point Planning: Safety Stock Reorder-Point Planning Recall from Replenishment Concepts that with reorder-point planning. You can manually enter safety stock quantities or Oracle Inventory can calculate a safety stock level based on an existing forecast for an item. 11i Replenishment Fundamentals Chapter 11 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. you order a quantity when the quantity falls to a predetermined reorder point as shown in the above graphic.

Order processing lead times include the following components: • Preprocessing lead time • Processing lead time • Postproccessing lead time Oracle Inventory calculates reorder point planning lead time by adding all the three components. 2005.Reorder-Point Planning: Lead Time Reorder-Point Planning (continued) Replenishment Lead Time Replenishment lead time is the total time between recognizing the need to reorder and the receipt of items. Oracle Inventory uses forecast information to calculate average demand. All rights reserved. Timing of Reorders You should reorder when the following is true: (quantity on hand + quantity on order) < reorder point where the reorder point = safety stock + [(lead time) × (average demand during lead time)] l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Item Demand The reorder point planning routine uses the average demand during the replenishment lead time. 11i Replenishment Fundamentals Chapter 11 .Page 34 .

2005. Use the following formula to determine the EOQ: EOQ = SQRT {[2 × (annual demand) × (order cost)] / (annual carrying costs)} Oracle Inventory calculates the EOQ by using annual demand from the forecast that you provide when you perform reorder-point planning. 11i Replenishment Fundamentals Chapter 11 .Reorder-Point Planning: Reorder Quantity Reorder-Point Planning (continued) Quantity of Reorders The reorder quantity is equal to the Economic Order Quantity (EOQ). The system also uses the order and annual carrying costs that you specify when you define items. You can constrain the reorder quantity by specifying the following information for each item: • Fixed-lot multiplier • Minimum order quantity • Maximum order quantity Quantity on Order l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Page 35 . All rights reserved. The EOQ is the quantity that minimizes the total cost of ordering and storing inventory.

Quantity on order represents supply that you have not yet received. The quantity on order is the sum of the purchase order. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. requisition (internal and supplier). All rights reserved.Page 36 . 2005. and in-transit quantities owned by the organization. Chapter 11 .

Chapter 11 .Reorder-Point Planning Steps l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 2005.Page 37 .

All rights reserved. Chapter 11 .Entering Item Planning Attributes l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 38 .

Minimum-Order Quantity Oracle Inventory orders a quantity that is at least as large as the minimum-order quantity. Fixed-lot Size Multiplier Oracle Inventory orders a quantity that is a multiple of the fixed-lot size multiplier. 2005. Carrying cost = (carrying cost percent) × (standard unit cost) Order Cost Oracle Inventory uses the order cost to calculate the EOQ for the item. 11i Replenishment Fundamentals Chapter 11 . The order cost represents the fixed cost of placing an order for any quantity of the item. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. The annual carrying cost represents your internal cost to stock one of that item per year.Page 39 .Entering General Planning Attributes for Reorder-point Planning Organization Items: General Planning Tabbed Region Navigation Path Inventory Responsibility (N) Items > Organization Items > (T) General Planning Carrying Cost Percent Oracle Inventory uses the carrying cost percent information to calculate the EOQ for the item.

l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 11 . All rights reserved.Maximum-Order Quantity Oracle Inventory orders a quantity that is less than or equal to the maximum-order quantity.Page 40 . 2005.

All rights reserved. 2005. • Processing lead time: Represents the number of days required to procure or manufacture the item. 11i Replenishment Fundamentals Chapter 11 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Entering Lead Times Organization Items: Lead Times Tabbed Region Navigation Path (N) Items > Organization Items > (T) Lead Times Lead Times You can specify the following lead times: • Preprocessing lead time: Represents the number of days required to place a purchase or manufacturing order.Page 41 . • Postprocessing lead time: Represents the number of days required to deliver a purchased item from the initial supplier receipt of the purchase order.

All rights reserved. you must submit a concurrent request through the Reload Safety Stock window.Page 42 .Entering Safety Stocks Entering Safety Stock You can enter a user-defined quantity as the safety stock or have the system calculate the safety stock. 11i Replenishment Fundamentals Chapter 11 . If you want Oracle Inventory to calculate safety stock. You can update safety stock quantities that you previously entered or that Oracle Inventory calculated for you. using the Mean Absolute Deviation method. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. use the Enter Item Safety Stocks window. To enter user-defined quantities. 2005. Navigation Path for Enter Item Safety Stocks Window Inventory Responsibility (N) Planning > Safety Stocks Navigation Path for Reload Safety Stock Window Inventory Responsibility (N) Planning > Safety Stock Update Stock Calculation Methods User-defined quantity method: You can enter safety stock quantities and the date for which each quantity is effective.

User-defined percentage method: 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 - Oracle Inventory uses the following equation to calculate safety stock quantities: Safety stock = (safety stock percent) × (forecast demand). Mean Absolute Deviation Method: 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 - The service level percent represents the probability that you can fill an order from available inventory. If you enter a high service level, then Oracle Inventory calculates relatively larger safety stock quantities. Oracle Inventory calculates safety stock quantity by using the following equation: 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.

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Performing Reorder-point Planning

Providing a Forecast The reorder-point planning program uses information from the forecast to calculate the Economic Order Quantity (EOQ) and the reorder-point quantity. The following equations show each of these calculations: • EOQ = SQRT {[2 × (annual demand) × (order cost)] / (annual carrying costs)} • Reorder point = safety stock + [(lead time) × (average demand)] Providing On-Order Quantity Information Oracle uses on-order quantity information to determine when to reorder an item. You should reorder when the following is true: (quantity on hand + quantity on-order) < reorder point Oracle uses the following sources to calculate on-order quantities: • Purchase orders • Requisitions (internal and supplier) • In-transit shipments owned by the organization Oracle Inventory uses purchase orders, requisitions, and in-transit shipments that are scheduled to be delivered before the supply cutoff date.

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Viewing Planning Information You can view planning information before creating replenishment orders. If you want to create replenishment orders automatically, then you must request requisitions. Creating Requisitions Oracle creates requisitions for all items that meet the following condition: (quantity on hand + quantity on order) < reorder point Oracle creates either purchase requisitions (if the source is a supplier) or internal requisitions (if the source is an Inventory Organization). The reorder quantity is the EOQ constrained by the following attributes: • Fixed-lot size multiplier • Minimum order quantity • Maximum order quantity Reorder Submission You can submit the planning process for all items under reorder-point planning or submit the planning process for just those items that are below their reorder-point quantities.

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Guided Demonstration: Reorder Point Planning

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Guided Demonstration - Reorder Point Planning
Responsibility: Inventory, Vision Operations USA 1. 2. 3. 4. 5. 6. 7. 8. 9. (N) Items > Organization Items. Find Item AS18947. (T) General Planning. Change the Inventory Planning Method to Reorder Point. Change the Minimum Order Quantity to 35. Change the Order Cost to 45. Change the Carrying Cost % to 12. (T) Lead Times. Change the Processing lead time to 5.

10. Save and Close Window. 11. (N) > Planning > Reorder Point Planning. 12. Select Items Under Reorder Point as the Item Selection. 13. Enter Demand and Supply cut off dates. 14. Select a Forecast from the list of values. 15. Submit your request.

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Agenda

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Uses of Min-max Planning

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requisition quantities.Page 50 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.transit shipments. It also includes WIP jobs as supply at the organization level. Deciding When to Order with Min-max Planning You should order when the following is true: (on-hand quantity – demand) + (quantity on order) < minimum quantity Quantity on order is the sum of purchase order quantities. and in. All rights reserved. Quantity on order represents supplies that you have not yet received in your organization. 2005.Min-max Planning Min-Max Planning Recall that Min-max planning is a method of determining when and how much to order based on user-defined minimum and maximum inventory levels. Note: To perform organization-level Min-max planning for an item. 11i Replenishment Fundamentals Chapter 11 . you must specify organization-level minimum and maximum quantities.

Page 51 .Min-max Planning: When to Order? l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 11 . All rights reserved.

2005.Page 52 . Chapter 11 .Min-max Planning: How Much to Order? Note: You can constrain the order quantity by specifying the following order modifiers for an item: • Fixed-lot multiplier • Minimum order quantity • Maximum order quantity l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

Chapter 11 .Page 53 . All rights reserved.Min-max Planning Steps l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

Chapter 11 .Page 54 . All rights reserved.Item Planning Attributes l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

Page 55 . Chapter 11 . All rights reserved.Min-max Planning Setup Procedure l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

Page 56 . 2005. Chapter 11 .Selecting a Planning Level l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

you enter the appropriate planning attributes. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Entering Planning Attributes Entering Item Planning Attributes After you select a planning level.Page 57 . either Organization or Subinventory. Chapter 11 . All rights reserved.

When you submit the Minmax planning request.Page 58 . All rights reserved. You can also submit the planning process for just those items under their minimum quantities and submit the planning process for just those items over the maximum quantities. min-max planning involves submitting a concurrent process that generates the Min-max planning report. 2005. You can also perform exception reporting with the Min-max planning reporting feature. Using Nettable Subinventories l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Submitting the Min-max Planning Requests Submitting the Min-max Planning Requests In addition to setting up planning attributes. you must specify a number of parameters including parameters that address the following: • Nettable subinventories • Demand quantities • On-order quantity information • Requisitions and WIP unrealized jobs • Exception reporting You can submit the planning process for all items under min-max planning. 11i Replenishment Fundamentals Chapter 11 .

2005. Viewing Planning Information You can view planning information before creating replenishment orders. Oracle Inventory creates requisitions and WIP unreleased jobs for all items that meet the following condition: (on-hand quantity) + (quantity on order) < minimum quantity Oracle Inventory creates purchase requisitions (if the source is a supplier) and internal requisitions (if the source is an Inventory Organization) for all Buy items. The system calculates demand quantity by using information from the following sources: • Sales orders • Internal orders You can include WIP job component requirements as a source of demand as well. All rights reserved. Chapter 11 . Creating Requisitions and WIP Unrealized Jobs If you request a restock. Displaying Demand Quantity Oracle Inventory displays the sum of all unfulfilled demand created before the cutoff date.Oracle Inventory enables you to use on-hand quantities that exist in either nettable or nonnettable subinventories. To automatically create replenishment orders. or both.Page 59 . The order quantity is constrained by the following attributes: • Fixed-lot size multiplier • Minimum order quantity • Maximum order quantity Navigation Path Inventory Responsibility (N) Reports > Planning l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. you must request requisitions. You can net unfulfilled demand against on-hand quantity and also include inventory reservations in netting on-hand quantity against demand. and WIP unreleased jobs for all Make items.

Chapter 11 .Guided Demonstration Overview: Min-max Planning l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 60 . 2005. All rights reserved.

11i Replenishment Fundamentals Chapter 11 . (M) File > Close Form. l a n r e t n I e l c a r O ly n O e s U I A O & 19. 13. Choose Submit. 14. 7. (N) Items > Organization Items. (M) File > Save. (N) Requests. − Planning Level: Subinventory − Subinventory: FGI 16. Running the Min-max Planning Report. 8. (M) File > Save. Vision Operations USA Setting Up Min-max Planning for an Item. Find your request. (M) File > New Enter FGI as the subinventory. Select the Min-Max Planning Check box. Find Item AS54888 (T) General Planning Change the Inventory Planning Method to Min-Max. All rights reserved. Enter the following planning information. 11. Enter 900 as the Maximum Qty.Min-max Planning Responsibility: Inventory. 1.Page 61 . 3. 4. Choose OK. 12. 6. 2. 9.Guided Demonstration . (M) Tools > Item Subinventories. Viewing the Min-Max Planning Report 18. 2005. Enter 300 as the Minimum Qty. 5. Copyright © Oracle Corporation. 17. 10. (N) Planning > Min-Max Planning 15.

(M) File > Close Form.Page 62 . 22. All rights reserved. 2005. Chapter 11 . 21. (M) File > Close. Choose View Output. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.20.

All rights reserved.Practice Overview: Min-max Planning l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 63 . 2005. Chapter 11 .

Practice . Tasks Enable Min-max Planning for Item Enter Min-max planning for ##-Item03 and restrict to your ##FGI subinventory. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.Page 64 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. All rights reserved. Chapter 11 . Assumptions • • You completed the define items lab. Use the following minimum and maximum quantities: − Minimum quantity: 300 − Maximum quantity: 900 Request a Min-max Planning Report Request a min-max planning report for your item and subinventory using the following information: − Planning level: Subinventory − Subinventory: ##FGI View Min-max Planning Report View your min-max planning report.Performing Min-max Planning Overview In this lab you will perform min-max planning for an item.

6. (M) File > Save (M) Tools > Item Subinventories Enter the minimum and maximum quantities for the item/subinventory combination as follows: − Name: ##FGI − Minimum Quantity: 300 − Maximum Quantity: 900 Copyright © Oracle Corporation. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Replenishment Fundamentals Chapter 11 . 3.Page 65 . All rights reserved. 2005. Navigate to the Organization Items window and find your ##-Item03 item. • 2. (T) General Planning − Inventory planning Method: Min-Max 4. 5.Solution – Performing Min-max Planning Enable Min-max Planning for Item Responsibility = Inventory. (N) Items > Organization Items Find your ##-Item03 item. Vision Operations USA 1.

• • (M) File > Save (M) File > Close Form Request a Min-max Planning Report 8.Page 66 . 11i Replenishment Fundamentals Chapter 11 .7. 2005. Save and Close window. (N) Planning > Min-Max Planning Enter the following information in the Parameters window: − Planning Level: Subinventory − Subinventory: ##-FGI l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. • 9. Navigate to the Min-Max Planning window. All rights reserved.

11. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 67 . Choose Submit. 2005. Choose OK. All rights reserved. Chapter 11 .10.

Select My Completed Requests l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.View Min-max Planning Report 12. 2005.Page 68 . All rights reserved. Chapter 11 . (N) Requests 13.

Chapter 11 . Select your request.Page 69 .14. Select Find. 2005. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 15.

17. (M) File >Close Form.16. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 70 . 2005. Chapter 11 . Select View Output. 18. (M) File > Close. All rights reserved.

Chapter 11 .Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 2005.Page 71 .

Chapter 11 .Uses of Replenishment Counting Uses of Replenishment Counting Recall that replenishment counting is a method of ordering items for subinventories. All rights reserved. Oracle Inventory creates requisitions that are based on the sourcing options that you specify for each item.Page 72 . You can perform counts for the non-tracked subinventories and then have Oracle Inventory check these counts against the minimum quantities that you have specified. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

Enter the replenishment count header information using the Replenishment Count Headers window. 11i Replenishment Fundamentals Chapter 11 . All rights reserved. for example you can define sourcing information at the itemsubinventory level or at the subinventory level. For example. 2. if sourcing is from another subinventory then the system automatically generates a move order. Specify the requisition approval status using the profile options. 5. Note Use the INV: Replenishment Count Requisition Approval profile option to specify the l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. You can define sourcing information at various levels. Assign items to the subinventories using the Item Subinventories window.Page 73 . 7. 3. Define sourcing information for the subinventories. Enter the replenishment counts using the Replenishment Count Lines window. 2005. 6. 4. Use the Subinventories window to create the subinventories for which you want to perform replenishment counts.Replenishment Planning Steps The following are the steps involved in performing a replenishment count: 1. Process and report the count information for the system to generate requisitions based on the sourcing information.

All rights reserved. Use the INV: Replenishment Count Line Failure profile option to specify whether the system should stop or continue processing in case a replenishment count fails. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.requisition approval status.Page 74 . Chapter 11 .

Page 75 . All rights reserved. Chapter 11 .Subinventories Window Subinventories Window Inventory Responsibility (N) Setup > Organizations > Subinventories (B) New. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

Entering Subinventory-Level Min-Max Minimum and Maximum Quantities You can use the Min-max method to replenish subinventories. Navigation Path Inventory Responsibility (N) Setup > Organizations > Subinventories (B) Item/Subinventory. 11i Replenishment Fundamentals Chapter 11 . In another replenishment count entry method designed only for non-tracked subinventories. you can order the min-max maximum quantity. you must specify subinventory-level min-max planning for the item. All rights reserved. you can enter an on-hand quantity. after which Oracle Inventory performs min-max calculations.Page 76 . 2005.Item Subinventories Window Specifying Min-max Planning To enter replenishment counts for an item. In one replenishment count entry method. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

Oracle Inventory calculates order quantities that are less than the maximum order quantity. All rights reserved.Item Subinventories: Order Modifier Tab Entering Order Modifiers Fixed-Lot-Size Multiplier When you perform replenishment counting. Minimum Order Quantity When you perform replenishment counting. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Oracle Inventory calculates order quantities that are greater than the minimum order quantity. 2005. Oracle Inventory calculates order quantities that are multiples of the fixed-lot-size multiplier. Maximum Order Quantity When you perform subinventory replenishment. Navigation Path Inventory Responsibility (N) Setup > Organizations > Subinventories > (T) Order Modifiers. 11i Replenishment Fundamentals Chapter 11 .Page 77 .

l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Page 78 . All rights reserved. Navigation Path Use the following navigation path to access the Replenishment Count Headers window: Inventory Responsibility (N) Counting > Replenishments Counts > Counts (B) New.Replenishment Count Headers Entering Replenishment Count Header Information In the Replenishment Count Headers window. you enter a name and subinventory for which you want to perform replenishment counting. 2005. 11i Replenishment Fundamentals Chapter 11 .

For any count type. and minimum order quantities. Oracle Inventory uses the quantity that you enter to perform minmax comparisons and to generate requisitions. maximum order quantities. On-Hand Quantity This method is only for non-tracked subinventories.Replenishment Count Lines Entering Replenishment Count Lines You must enter replenishment count header information to enter replenishment count lines for items that are associated with the subinventory that you specify. 2005. The item for which you select this method must be a min-max planned item. Order Quantity l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Oracle Inventory uses the sourcing options defined for that item and subinventory combination.Page 79 . You cannot enter a quantity if you select this option. Order Maximum The item for which you select this method must be a min-max planned item. You can count the contents of the subinventory and then enter the on-hand quantity. Oracle Inventory generates a requisition for the min-max maximum quantity specific to that item and subinventory combination. 11i Replenishment Fundamentals Chapter 11 . the reorder quantities are constrained by fixed-lot-size multiple quantities. All rights reserved.

Chapter 11 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Navigation Path Use the following navigation path to access the Replenishment Count Lines window: Inventory Responsibility(N) Counting > Replenishment Counts > Counts (B) Lines. 2005. With the Order Quantity count type. All rights reserved. Oracle Inventory generates a requisition for the quantity that you enter.Page 80 .The item for which you select this method can be planned using any replenishment planning method.

Processing Replenishment Counts Entering Counts Using External Devices You can use external data collection devices. Purging Replenishment Counts If you want to purge replenishment counts. Run the replenishment validator program before submitting the replenishment processor. Oracle Inventory creates internal or purchase requisitions according to each item’s default sourcing options. You can run the replenishment validator and processor after entering counts directly into the replenishment open interface. use the Purge Replenishment Counts window. The interface table stores the counts that you enter with an external device. and then writes the records to the count tables. Navigation Paths Inventory Responsibility(N) Counting > Replenishment Counts > Process Interface.Page 81 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. such as bar code readers to enter replenishment counts. The replenishment count processor performs the calculations that are necessary to determine whether Oracle Inventory should create requisitions. and counts. All rights reserved. 2005. Replenishment Validator and Processor The replenishment validator reads the count records that exist in the interface table. subinventories. 11i Replenishment Fundamentals Chapter 11 . Oracle Inventory validates the items.

l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 11 .Inventory Responsibility (N) Counting > Replenishment Counts > Purge.Page 82 . 2005. All rights reserved.

Chapter 11 .Page 83 . 2005. All rights reserved.Practice Overview: Performing a Replenishment Count Using Forms l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

The following are the steps in this practice: • • • • Defining item-subinventory relationship and sourcing information Entering the replenishment count header information Entering the replenishment count using forms Processing the count information using forms Assumptions • • • • • You are skilled in Oracle Navigation.Performing a Replenishment Count Using Forms Overview In this practice you will perform a replenishment count using forms. Vision Operations USA Tasks Define Item-Subinventory Relationship and Sourcing Information Define item-subinventory relationship and sourcing information for the following: − Subinventory: ##LV − Item: ##-Item02 − Min-Max Planning: Yes − Minimum Quantity: 10 − Maximum Quantity: 50 Also define sourcing information in such a way that ##-Item02 for ##LV is replenished from the subinventory ##RM. The quantity of ##-Item02 in your ##RM subinventory is at least 100. You completed the practice on creating subinventories.Practice . 2005. You completed the practice on defining items. All rights reserved. Responsibility = Inventory. Enter Replenishment Count Header Information Create a replenishment count header for forms using the following information: Copyright © Oracle Corporation. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Replenishment Fundamentals Chapter 11 . You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.Page 84 .

Answer the following question after you complete the lab. All rights reserved. Chapter 11 .− Name: − Subinventory: ##RC1 ##LV Enter Replenishment Count Using Forms Enter the replenishment count for ##RC1 using the following information: − Item: ##-Item02 − Count Type: Onhand Quantity − Count: 5 Process the Count Information Using Forms Process the count entered for ##RC1 using the forms. 2005. What is the reorder quantity for ##RC1? l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 85 .

Vision Operations USA 1. 11i Replenishment Fundamentals Chapter 11 . • (N) On-hand. All rights reserved. • • • 2.Performing a Replenishment Count Using Forms Define Item-Subinventory Relationship and Sourcing Information Responsibility = Inventory. Availability > On-hand Quantity − Subinventory: ##RM − Item / Revision: ##-Item02 3. (B) Find. (N) Change Organization Choose Seattle Manufacturing Select OK Verify the on-hand quantity of ##-Item02 in ##RM Subinventory. 2005.Page 86 . Change Organization to M1 Seattle.Solution . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

All rights reserved.4. Navigate to the Subinventories window • (N) Setup > Organizations > Subinventories 5. 6. Select Item/Subinventory Define the item-subinventory relationship using the following information: • (T) Planning − Item: ##-Item02 − Min-Max Planning: Yes − Min Qty: 10 − Max Qty: 50 (T) Sourcing − Type: − Subinventory: • l a n r e t n I e l c a r O ly n O e s U I A O & Subinventory ##RM Copyright © Oracle Corporation. 2005.Page 87 . 11i Replenishment Fundamentals Chapter 11 . Select the ##LV subinventory from the list. 7.

• (N) Counting > Replenishment Counts > Counts 10. Create a new replenishment count header using the following information: − Name: ##RC1 − Subinventory: ##LV − Count Using Mobile: No l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 11. 2005.8. Navigate to the Replenishment Count Headers window.Page 88 . 11i Replenishment Fundamentals Chapter 11 . (M) File > Save. Select New. Enter Replenishment Count Header Information 9.

Enter Replenishment Count Using Forms 13.Page 89 . 14.12. Enter the following information: − Count Type: Onhand Quantity − Quantity: 5 l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. Chapter 11 . 2005. Select Default Items.

However. to complete this transaction you must transact this move order using the Transact Move Orders window. 19. 11i Replenishment Fundamentals Chapter 11 . View the details of the Replenishment Count Report by querying for the request number in the Requests window.Page 90 . Note: As the item ##-Item02 for the subinventory ##LV is sourced from another subinventory ##RM.15. (M) File > Save. Process the Count Information Using Forms 17. 18. 2005. Select Process and Report. What is the reorder quantity for ##RC1? The reorder quantity is 45 (maximum quantity – onhand quantity). the application automatically creates a move order after you process the count. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 16. All rights reserved. Return to the Replenishment Count Headers window. 20. The replenishment request number is displayed.

Page 91 . All rights reserved. Chapter 11 .Practice Overview: Performing a Replenishment Count Using the Mobile Application l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

Responsibility = Materials & Mfg Tasks Enter Replenishment Count Header Information Create a replenishment count header using the following information: − Name: ##RC2 − Subinventory: ##-LV − Count Using Mobile: Yes Enter Replenishment Count Lines Enter the replenishment count line information for ##RC2 using the forms: − Item: ##-Item02 − Count Type: Order Quantity Enter Replenishment Count Using the Mobile Application Enter the replenishment count for ##RC2 in the mobile application using the following information: − Organization: M1 − Subinventory: ##-LV Copyright © Oracle Corporation. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Replenishment Fundamentals Chapter 11 . The following are the steps in this practice: • • • Entering the replenishment count header information using forms Entering the replenishment count using the mobile application Processing the count information using the mobile application Assumptions • • • You are skilled in Oracle Navigation. All rights reserved.Page 92 . You completed the practice on performing a replenishment count using forms.Practice .Performing a Replenishment Count Using the Mobile Application Overview In this practice you will perform a replenishment count using the mobile application. 2005. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Page 93 .− Replenishment Count: − Item: − Order Quantity: ##RC2 ##-Item02 30 Process the Count Information Using the Mobile Application Process the count entered for ##RC2 using the mobile application. Can you enter the count in the Replenishment Count Lines window for ##RC2? Why? l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 11 . 2005. All rights reserved. Answer the following question after you complete the lab.

All rights reserved. 2005. 5. Select Default Items. • 2. (N) Counting > Replenishment Counts > Counts Select New. Vision Operations USA 1.Performing a Replenishment Count Using the Mobile Application Enter Replenishment Count Header Information Responsibility = Inventory.Page 94 . 3. Enter the following information: − Count Type: Order Quantity l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Navigate to the Replenishment Count Headers window. Create a new replenishment count header using the following information: − Name: ##RC2 − Subinventory: ##-LV − Count Using Mobile: Yes Enter Replenishment Count Lines 4. 11i Replenishment Fundamentals Chapter 11 .Solution .

Enter Replenishment Count Using the Mobile Application Responsibility = Materials & Mfg 7.Page 95 .6. Select Default from the Device List. where xxxx is the instance number. − Windows Start menu > Run − Enter telnet esxxxx. (M) File > Save. Start the Telnet session. 11i Replenishment Fundamentals Chapter 11 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 8.oracle.com 7070 in the Run dialog box. All rights reserved. 2005.

2005.Page 96 . 10. If more than one responsibility had been assigned to your user name. Note that “Materials & Mfg” responsibility must be assigned to your user name. All rights reserved. 11i Replenishment Fundamentals Chapter 11 . Enter your user name and password. select Materials & Mfg from the list. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.9.

11. Select Counting from the Inventory menu.Page 97 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Select Inventory from the Materials & Mfg Menu. 2005. All rights reserved. 11i Replenishment Fundamentals Chapter 11 . 12.

13. Copyright © Oracle Corporation. Select Count to enter the order quantity.Page 98 . Enter the following information when prompted. All rights reserved. 14. − Organization Code: M1 − Subinventory: ##-LV − Replenishment Count Name: ##RC2 15. Select Repl Count from the Counting menu. Note: The mobile application screen is case sensitive. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Replenishment Fundamentals Chapter 11 . 2005.

Chapter 11 . 2005. l a n r e t n I e l c a r O 17.Page 99 . Press Ctrl+B to view the Message Page. You can enter the count quantity for all items that have been associated with the subinventory. Note: As ##-Item02 is the only item associated with 00-LV subinventory. then you also need to enter the item. You can enter the count quantity for these items even if you have not included them in the Replenishment Count Header.16. the item name is automatically displayed and you are prompted to enter just the count quantity. If there are more than one item associated with the subinventory. Enter 30 as the order quantity and select Save/Next. 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

All rights reserved. You can view the details of the Replenishment Count Report by querying for the request number in the Requests window. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. The request number is displayed.Page 100 .Process the Count Information Using the Mobile Application 18. Press Ctrl+B to view the Message Page. 11i Replenishment Fundamentals Chapter 11 . Select Process and Report to process the count information that you entered. 19. 2005.

All rights reserved. 21. you can enter the count only using the mobile application. you cannot enter the count in the Replenishment Count Lines for ##RC2. Chapter 11 .Page 101 . This is because you would have selected the Count Using Mobile check box in the Replenishment Count Headers window. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Can you enter the count in the Replenishment Count Lines window for ##RC2? Why? No. 2005.20. Select Logout to exit the mobile application.

in Oracle Inventory you can model a hospital storeroom as a subinventory and the shelves and trolleys in the storeroom as locators. You can define PAR levels for each item stored in these locators. • Define locators for the subinventories. • Enter the PAR level when you define the item subinventory relationship. Note: If you have enabled PAR level planning for a subinventory. 2005. 11i Replenishment Fundamentals Chapter 11 . You can replenish these items every time they go below the PAR level. see Replenishment Planning Steps earlier in this lesson. All rights reserved.Processing PAR Counts PAR Counts Periodic Automated Replenishment (PAR) counting is a replenishment method that enables you to perform replenishment count at a locator level. the steps for PAR are the same as that of replenishment counting. you cannot perform min-max planning for that subinventory. The following steps are specific to PAR: • Enable PAR level planning for the subinventories. For example. In general.Page 102 . For a list of these steps. The PAR level acts as both the minimum and maximum quantity levels for subinventories that have PAR level planning enabled. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

2005. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. This option is only for non-tracked subinventories. The system compares this quantity that you enter with the PAR level to calculate the reorder quantity. then the quantity denotes the on-hand quantity available in the locator. If you choose on-hand quantity as the count type. This is similar to the order maximum option available when you perform a replenishment count. 11i Replenishment Fundamentals Chapter 11 . You cannot enter the quantity if you choose order par. For example. The system generates the appropriate replenishment document based on the item sourcing for the subinventory. the system automatically generates an internal order. All rights reserved. If you choose order PAR then the reorder quantity is same as the PAR level. if sourcing is from another organization.Page 103 .Reorder Quantity For PAR Count PAR Count Reorder Quantity The reorder quantity when you process a PAR count depends on the following factors: • PAR Level • Quantity • Count Type The table in the slide explains how the reorder quantity differs based on these factors.

Choose order quantity to generate a replenishment requisition for the quantity that you want to order. Chapter 11 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. the quantity denotes the order quantity.Page 104 . Note: If you have not specified the PAR level. 2005. In this case. then you can only choose order quantity as the count type. All rights reserved.

2005. Chapter 11 .Page 105 . All rights reserved.Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

Kanban Cards Kanban Replenishment Recall that a kanban system is a self-regulating pull system that leads to shorter lead times and reduced inventory. All rights reserved. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 11 .Page 106 . Kanban systems are typically applied to items with relatively constant demand and medium-to-high production volume.

The replenishment source for a kanban location can be another kanban location.Kanban Planned Items Kanban Planned Items To define a kanban planned item. you must define a pull sequence. or an external source. a production line. For example. You can define pull sequences only for kanban planned items.source-type kanban results in an inter-organization transfer. Use the following navigation path to access the MPS/MRP Planning attribute. A suppliersource-type kanban triggers a purchase request to the supplier. 2005. Navigation Path l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. which is a series of kanban locations that model the replenishment network on the shop floor. you must set the Release Time Fence attribute in the MPS/MRP Planning attribute group to the Kanban Item (Do Not Release) option in the Master Items window. Navigation Path Inventory Responsibility (N) Items > Master Items > (T) MPS/MRP Planning. a kanban location can be a subinventory locator. while an inter-org. Defining Pull Sequence Sources For every kanban planned item. All rights reserved. 11i Replenishment Fundamentals Chapter 11 . Kanbans can be sourced from an external supplier or an internal organization.Page 107 . You can use locators even if locator control is turned off at the organization and item levels.

Inventory Responsibility(N) Kanban > Pull Sequences > (T) Source. Chapter 11 . All rights reserved. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 108 .

You can terminate use of a card l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. but you can add additional cards or delete existing cards from the pull sequence to control the inventory in the replenishment chain. based on the split percentage and ranking. A supply source defaults from the sourcing rules if a sourcing rule is available for the item and kanban location. 2005. the number is automatically generated. you can enter an unused kanban number or let the system create the number. Updates to the sourcing rules apply only to cards created after the update. All rights reserved. and locator (optional). They are uniquely identified by a kanban number. subinventory. Only the primary supplier. Kanban Card Status Kanban cards are generated with a default card status of Active. For cards generated from a kanban pull sequence. Changes to the pull sequence are not reflected until the old cards are deleted and new ones are created.you can initially give it either Active or Hold status. For manually defined cards.Page 109 . You cannot override the quantity for generated cards. is used. both replenishable and nonreplenishable. When you define a card manually. You can manually override the quantity and supply source on a pull sequence only before the cards are printed. 11i Replenishment Fundamentals Chapter 11 .Kanban Cards Kanban Cards Kanban cards are created for an item.

Page 110 . Only canceled cards can be deleted. but you cannot reverse this change. 2005. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.by changing the card status to Canceled. Navigation Path Inventory Responsibility(N) Kanban > Pull Sequences (T) Kanban. Chapter 11 .

Full or New. 2005. You can switch this status to Empty to trigger a kanban replenishment signal. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. you can switch the status to Full if you are starting out with a full bin. you create a card with at status of Empty. During initial setup.Kanban Supply Status Kanban Supply Status You can set all of the supply status codes manually. All cards are generated with a status of New. When you are defining a card manually.Page 111 . 11i Replenishment Fundamentals Chapter 11 . You can also set all of the supply statuses automatically except for In-Transit.

All rights reserved.Replenished by a production line. • Intra-Org.Replenished by an external supplier.Replenished from another subinventory in the same organization. • Flow Schedules. • User Defined. • Production. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 2005. 11i Replenishment Fundamentals Chapter 11 .Page 112 .Replenished by another organization.Replenished by flow.You can define a replenishment source. • Supplier.Kanban Replenishment Sources Kanban Sources of Replenishment You can create kanban cards with the following source types: • Inter-Org.

Chapter 11 . You can print duplicate cards only if the original is lost or voided. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 113 . All rights reserved.Kanban Card Printing Kanban Card Printing You can print kanban cards for a replenishment plan or a replenishment chain when you generate the cards. You can also print cards individually if the card information is complete. 2005. You are given a warning message when you print duplicate cards.

Chapter 11 . 2005.Page 114 .Guided Demonstration Overview: Generating Kanban Cards l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

Guided Demonstration . Choose New. 8. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 5. 2. 11.Kanban Responsibility: Inventory. 6.Page 115 . All rights reserved. Enter the following information to create the pull sequence. Choose Replenish Number of Cards 10 10 20 4. Select the second card. (N) Kanban > Pull Sequences. − Item: AS18947 − Subinventory: FGI − Source Type: Supplier − Supplier: Advanced Network Devices − Supplier Site: Santa Clara (T) Kanban − Calculate: − Size: − Number of Cards: − Minimum Order Qty: (M) File > Save Choose Generate Cards Choose Cards Select the first card. 3. 9. (N) File > Close Form. Choose Replenish 12. 10. (N) File > Save 13. 7. 11i Replenishment Fundamentals Chapter 11 . 2005. Vision Operations USA Create Kanban Pull Sequence 1.

2005.Page 116 . All rights reserved. Chapter 11 .Practice Overview: Generating Kanban Cards l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

Page 117 . All rights reserved. 11i Replenishment Fundamentals Chapter 11 . Replenish Kanban Cards Replenish your Kanban cards.Practice . You are skilled in Oracle navigation. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. 2005. Assumptions • • • • You have completed the defining Subinventories Lab You have completed the Defining Items Lab. Tasks Setting up a Kanban Pull Sequence Set up a Kanban pull sequence using the following information: − Item ##-Item03 − Subinventory: ##FGI − Locator: − Source Type: Supplier − Supplier: Advanced Network Devices − Supplier Site: Santa Clara − Calculate: Number of Cards − Size: 10 − Cards: 10 − Minimum Order Quantity: 20 Generate Kanban Cards Generate Kanban cards for the pull sequence you created. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Generating Kanban Cards Overview In this lab you will learn how to generate Kanban Cards.

Vision Operations USA 1. 2005. Rack 1. Navigate to the Pull Sequences window. Use the following information to define a new pull sequence: − Item: ##-Item03 − Subinventory: ##FGI − Locator: Row ##. (N) Kanban > Pull Sequences > (B) New. 11i Replenishment Fundamentals Chapter 11 . All rights reserved. Bin 1 − Source Type: Supplier − Supplier: Advanced Network Devices − Supplier Site: Santa Clara • l a n r e t n I e l c a r O (T) Kanban − Calculate: − Size: − Number of Cards: ly n O e s U I A O & Number of Cards 10 10 Copyright © Oracle Corporation.Solution – Generating Kanban Cards Setting up a Kanban Pull Sequence Responsibility = Inventory. • 2.Page 118 .

11i Replenishment Fundamentals Chapter 11 . 6. • • • l a n r e t n I e l c a r O (M) View > Requests Select All My Requests Choose Find ly n O e s U I A O & Copyright © Oracle Corporation. Verify your Kanban cards printed. (M) File > Save Generate Kanban Cards 4. Choose Generate Cards Choose Yes to print Kanban cards. 2005. 5. All rights reserved.Page 119 .− Minimum Order Quantity: 20 3.

Select the second Kanban card in the list and choose replenish. 11i Replenishment Fundamentals Chapter 11 . l a n r e t n I e l c a r O Verify the supply status is Empty. • 8. Choose Cards or (N) Kanban > Kanban Cards. • • • • Select the first Kanban card in the list. Verify the supply status changed to Wait. All rights reserved.Page 120 . Replenish Kanban cards. Navigate to the Kanban Cards Summary window.• (M) File > Close Form Replenish Kanban Cards 7. and choose Replenish. 2005. ly n O e s U I A O & Copyright © Oracle Corporation.

Page 121 . All rights reserved. (N) File > Close Form. (N) File > Save. Chapter 11 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.9. 10.

Page 122 . All rights reserved.Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 11 .

demand – shortage. The basic formula for ATP is ATP quantity = on-hand quantity + supply .Available to Promise Available to Promise Available to Promise (ATP) represents the quantity available for sale at any given period. Chapter 11 .Page 123 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Oracle Inventory enables you to define different rules that govern what is considered supply and demand. All rights reserved. 2005.

ATP Rules and ATP Checks l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 11 .Page 124 . All rights reserved.

Page 125 . All rights reserved. • You can view the supply.Uses of ATP in Oracle Inventory Uses of ATP in Inventory • You can view the earliest available data for a specific quantity of an item or a group of items and the available quantity of an item for a specific date. and ATP item quantities for the periods that fall between the current date and the end of the ATP horizon. demand. 2005. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 11 .

2005.Page 126 . Chapter 11 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.Steps for Checking ATP Checking ATP Note: Oracle Inventory displays the organization-level default ATP rule whenever you perform ATP queries in your organization.

Period ATP = (period supply) – (period demand) l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.ATP Rules Setup Steps Defining an ATP Rule Navigation Path Inventory Responsibility (N) Setup > Rules > Available to Promise You can use the following equation to calculate the ATP quantity for each supply period.Page 127 . Chapter 11 . 2005.

You can use computation options individually or in combination. If the period ATP is negative.Page 128 . 11i Replenishment Fundamentals Chapter 11 . If the period ATP is negative. Forward Consumption of Shortage You can calculate ATP information by using a surplus quantity of an item from future ATP periods to cover an earlier period shortage. Backward Consumption of Shortage You can calculate ATP information by using the surplus quantity of an item from prior ATP periods to cover a period shortage. 2005.Defining Computation Options ATP Computation Options When you define ATP rules. All rights reserved. one at a time. You can keep going backward until the shortage disappears or you run out of periods. and subtract the shortage from the available quantity. You can keep going forward until the shortage disappears or you run out of periods. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. then you can go forward through the supply periods. you must specify computation options. Computation options govern how to calculate the ATP quantity in each period. you can go backward through the supply periods. one at a time. and subtract the shortage from the available quantity.

The accumulation window is measured in workdays based on the organization calendar and exception set. Note: This option assumes backward consumption of shortage. The accumulation window applies to only the following two computation options: • Accumulate Available • Backward Consumption l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Defining Computation Options Determining ATP using Accumulation Options You can use the Accumulate Available option to calculate ATP by carrying over the available quantity of an item from one ATP period to the next. The accumulation window option prevents the commitment of near-term supply to orders that have requirement dates far into the future.Page 129 . All rights reserved. 2005. Entering an Accumulation Window Accumulation window is the number of days by which to limit the accumulation of available supply. 11i Replenishment Fundamentals Chapter 11 .

Past-due-supply time fence date = (current date) – (past-due-supply days) Past-Due-Demand Days l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Page 130 . You can define item time fence options to provide timing information for the ATP calculation. 2005. The ATP calculation algorithm uses the following time fences: Past-due-supply time fence Past-due-demand time fence Infinite-supply time fence Entering Past Due Supply and Demand Days Past-Due-Supply Days The ATP process does not consider any supply scheduled before the past-due-supply time fence date. All rights reserved.Specifying Supply and Demand Time Fences Specifying Supply and Demand Time Fences A time fence is the total lead time required to purchase or manufacture an item. The ATP process considers all supply from the beginning of the past-due-supply time fence date to the current date as supply for the current date. 11i Replenishment Fundamentals Chapter 11 .

The ATP process does not consider any demand scheduled before the past-due-demand time fence date. Past-due-demand time fence = (current date) – (past-due-demand days) l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 11 . The ATP process considers all demand from the beginning of the past-due-demand time fence date to the current date as demand for the current date. 2005. All rights reserved.Page 131 .

You can select one of the following infinite-supply options: • Cumulative manufacturing lead time: The manufacturing lead time of an assembly plus the largest adjusted cumulative manufacturing lead time of its components. • User-defined time fence: A lead time that you specify for the item. All rights reserved. processing. 11i Replenishment Fundamentals Chapter 11 . Oracle Inventory does not consider supply sources scheduled on or after this date in ATP calculations. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Specifying Supply and Demand Time Fences Selecting an Infinite-Supply Option The infinite-supply time fence date is the end of the ATP horizon. • Cumulative total lead time: The total lead time of an assembly plus the largest adjusted cumulative total lead time of its components.Page 132 . • Total lead time: The sum of the preprocessing. 2005. and postprocessing lead times of an item. The infinitesupply option represents the total time beyond which the ATP process assumes that infinite supply is available to cover any scheduled demand.

2005. All rights reserved. If supply occurs on a nonworkday. A supply period can cover several days or be a minimum of one day.Page 133 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Replenishment Fundamentals Chapter 11 . If multiple supply events occur on the same day.Specifying Supply and Demand Time Fences Specifying a Supply Period Oracle Inventory designates a period as beginning on a scheduled supply date and ending on the day before the next scheduled supply date. the ATP calculation considers that supply as belonging to the next workday. the ATP process considers the total supply.

Page 134 . plan. 2005. Oracle Inventory considers only the following sources of supply: • Discrete MPS • Repetitive MPS • Discrete WIP • Repetitive WIP • Nonstandard WIP Including User-defined Demand Sources l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. If demand occurs on a nonworkday.Specifying Demand Sources ATP Demand ATP demand is the sum of all demand quantities in the supply period. a demand class might represent a large customer or a group of related customers. All rights reserved. If you select ATP by Demand Class. 11i Replenishment Fundamentals Chapter 11 . For example. the ATP calculation considers that demand as belonging to the previous workday. The demand class feature enables you to forecast. and promise based on subdivisions of your demand. ATP by Demand Class Check Box If you select the ATP by Demand Class check box. the ATP calculation considers only supply and demand for a particular demand class.

you must populate the user-defined demand interface table with your external demand information.In addition to Oracle’s predefined sources. you can use your own demand sources. To use your own demand sources.Page 135 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 2005. Chapter 11 .

2005.Specifying Supply Sources Using the Available On-Hand Quantity as the Supply Source You can choose to include available on-hand quantity as a source of supply. All rights reserved. you should not typically use available on-hand quantity as supply in make-to-order and assembleto-order environments. However. you must populate the user-defined supply interface table with your external supply information.Page 136 . However. you can use your own supply source. Including User-Defined Supply as a Supply Source In addition to Oracle’s predefined supply sources. 11i Replenishment Fundamentals Chapter 11 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

Chapter 11 . 2005.Setting Up Item and Bills for ATP Checking l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 137 . All rights reserved.

the ATP process uses the organization-level default ATP rule that you enter in the Organization Parameters window. If you do not specify an ATP rule for the item. When you place a demand for the item in Oracle Order Management. If you decide not to enable the Check ATP attribute. rarely out of stock. You should not enable the Check ATP attribute for items that are noncritical. 2005. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. or replenishable on short notice. All rights reserved.ATP Checking Enabling ATP Checking When Placing a Demand If you enable the Check ATP attribute. the ATP process checks to see if there is sufficient quantity.Page 138 . on a short manufacturing cycle. 11i Replenishment Fundamentals Chapter 11 . then you can place a demand for the item even if there is not sufficient stock to satisfy the demand. the item must pass an ATP test before you can place a demand for it in Oracle Order Management. Specifying an Item ATP Rule Oracle Inventory uses the ATP rule that you assigned to check ATP when you place a demand for the item in Oracle Order Management.

Page 139 . you can place a demand for the assembly only if all of the components with the enabled Check ATP attribute at the billcomponent level pass the ATP check. then the assembly must also pass the ATP check before you can place a demand for it. If you enable the Check ATP attribute for the assembly. 2005. Chapter 11 . l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.ATP Checking Selecting the ATP Components Attribute If you enable the ATP Components attribute for an assembly.

at the bill-component level. Use the following navigation path to access the Check ATP attribute in Oracle Inventory: (N) Items > Organization Items > (T) Order Management.ATP Checking Setting the Check ATP attribute at the Bill Level Use the following navigation path to access the Bills of Material window: Navigate to the Oracle Bills of Material application. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. If you had not enabled the Check ATP attribute when you defined the item. If you had enabled the Check ATP attribute when you defined the item. If an item is a component in a bill of material. (N) Bills > Bills. This enables you to set up items that require passing ATP checks when ordered directly.Page 140 . 2005. but that do not require passing ATP checks when they are components of an assembly. to something other than what you set at the master-item level. All rights reserved. you can decide whether to enable or disable the component Check ATP attribute. you can change the value of the Check ATP attribute. 11i Replenishment Fundamentals Chapter 11 . Oracle Inventory does not enable the bill component Check ATP attribute.

Page 141 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. you must specify the following information: • Required quantity • Required date Oracle Inventory then displays the following ATP results: • Earliest date on which the required quantity will be available • ATP quantity for the required date Viewing ATP Information for a Group of Items Oracle Inventory returns the date when all of the items in the group will be available. 11i Replenishment Fundamentals Chapter 11 .Viewing ATP Criteria Viewing ATP Information for Individual Items When you set up ATP criteria. All rights reserved. You can view the ATP result and supply and demand detail for each item by navigating to the ATP by Period and Supply/Demand Detail windows respectively. 2005. Viewing ATP Information for a Demand Class You can view ATP information for individual items and groups of items that belong to a particular demand class.

Chapter 11 .Page 142 . 2005.Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

The replenishment count transactions are executed on a periodic basis. Enter Replenishment Count Form Indicates processing control in the Enter Replenishment count window. All rights reserved. allowing you to continue working. you can optionally load requisitions as unapproved and use the document approval functionality in Oracle Purchasing. control returns immediately to you. 2005. If you choose Incomplete. • Concurrent processing: Upon commit. Displays the concurrent request number representing the concurrent process executing the replenishment. Replenishment Count Line Failure l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Page 143 .Planning and Forecasting Profile Options Planning and Forecasting Profile Options Minmax Reorder Approval Indicates the status of requisitions created by the Minmax Planning Report. Inventory predefines a value of Pre-approved for this profile for all levels upon installation. Oracle Inventory spawns the concurrent process and returns control immediately to you. The available values are as follows: • Background processing: Upon commit. 11i Replenishment Fundamentals Chapter 11 . allowing you continue working.

you can optionally load subinventory replenishment requisitions as unapproved and use the document approval functionality in Purchasing. If you choose Approval Required.Requisitions created by the replenishment processor are approved. • Continue processing. Inventory predefines a value of Continue processing for this profile for all levels upon installation. All rights reserved.Do not process other (successful) lines for the replenishment header. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Other (successful) lines for the replenishment header are processed to requisition lines.Requisitions created by the replenishment processor are currently not approved. • Halt processing. • Incomplete – Requisitions created by the replenishment processor have not been submitted for approval. Inventory predefines a value of Incomplete for this profile. Replenishment Count Requisition Approval Indicates the status of subinventory replenishment requisitions created by the replenishment processor. 2005. Chapter 11 .Page 144 .Indicates the action taken when a failure is detected while processing a replenishment count line. • Approval Required. Available values are: • Pre-approved.

How to Enter a Min-Max Approval Status To enter a min-max requisition approval status. Note: If you do not have access to system-level profile values.Page 145 .Setting Up the Min-Max System Profile Value Entering Min-Max Approval Status When you run the Min-max report. navigate to the System Profiles window to enter a personal or system profile value to specify a min-max reorder approval status. ask your system administrator for assistance in setting up the system-level Minmax Reorder Approval profile option. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Replenishment Fundamentals Chapter 11 . Enter “%Minmax%” in the find window to locate the Minmax Reorder Approval profile option. All rights reserved. the INV: Minmax Reorder Approval profile option enables you to create requisitions as either approved or unapproved. A Find window appears. The Personal Profile Values window appears. Navigation Path Inventory Responsibility (N) Setup > Profiles > Personal. (M) View > Find. 2005.

Subinventory Setup Windows l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. All rights reserved. Chapter 11 .Page 146 .

Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 147 . Chapter 11 . All rights reserved.

Page 148 . the Organization Item level. 2005. and if the source type is “Subinventory.” min-max creates requisitions.” it creates purchase orders. For subinventory level min-max planning. or in the Organization Parameters window. the report checks to see if a source type is specified either at the Subinventory level. If this is left blank. Note that source type “Subinventory” is not valid for organization level planning (it is not a valid option on the Organization Parameters window.Min-Max Order Type and Order Source Min-Max Order Type and Order Source An item can be a “make” item or a “buy” item. requisitions or move orders (“Transactable” check box on Inventory tab of Organization Item window checked). you can specify the source type in the Sourcing tab of the Item Subinventories window. if used on the Organization Item window for an item that is planned at the organization level. If the source type is “Supplier. If the item is a Buy item and the source type is set to “Inventory. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. For organization level min-max planning. 11i Replenishment Fundamentals Chapter 11 . All rights reserved. it will not restock the item). you can specify the source type in the “General Planning” tab of the Organization Item window. This characteristic of an item and the source type that you specify for the item determine the type of replenishment order created for that item.” it creates move orders. Items must also be transactable in order for min-max to create purchase orders.

• For purchase orders (source type Supplier). • An Inventory AP Accrual account is defined for the organization. the Internal Orders Enabled check box in the Order Management tab of the Organization Item window must be selected. If the 'Use Requisition Encumbrance' check box is not selected. • Make certain to run the min-max planning with restock = yes. the item is purchasable. subinventory. If the Inventory Asset Value check box is not selected. Make Item Considerations The following considerations should be considered when using min-max on make type items. For organization level planning. Whether or not WIP demand and supply are included in the calculations is specified in the report parameters. WIP work orders cannot be generated for subinventory level min-max planning – if a Make item is min-max planned at the subinventory level.Page 149 . • A charge account is defined. the report flips the flag and treats it as a Buy item instead.Purchasable Item Considerations The following conditions must be satisfied before min-max can insert records into the PO interface table: • For requisitions (source type Inventory). That is. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. or in the Valuation Accounts section of the Costing Information tab of the Organization Parameters window. • Discrete MPS • Set the item type to Make. All rights reserved. then the material account is used. • An Invoice Price Variance account is defined for the organization. The expense account is defined on the Purchasing tab of the Organization Item window. Oracle Inventory checks the expense account defined at the subinventory level before looking at the org-item or org level expense account. Additional considerations for Creation of WIP Jobs For “make” items. the material account is specified in the Valuation Accounts section of the Costing Information tab of the Organization Parameters window. If the Inventory Asset Value check box in the Costing tab of Organization Item window is checked. • Make certain that under the general planning tab the sourcing is set to null and cleared out. the material account is specified in the Subinventories window. it is optional to specify Encumbrance Account in the Organization Items window or Organization Parameters window. Encumbrance Account SHOULD BE specified at the item-subinventory. Also. the item must have the Build in WIP and Pick components enabled. Encumbrance Account SHOULD BE specified at Item or Org level. organization-item or organization level. the Purchasable check box in Purchasing tab must be selected. For subinventory level planning. if the 'Use Requisition Encumbrance' check box is selected in the Financial Options window under Encumbrance tab. • For Min-Max Report to create Purchase / Internal requisitions successfully. That is. For organization level planning. internal orders must be enabled for the item. 2005. 11i Replenishment Fundamentals Chapter 11 . for subinventory level planning. the expense account is used for organization level planning. min-max will only look at the organization-item or organization level to find the encumbrance account. min-max inserts a record into the WIP interface table wip_job_schedule_interface for creating a WIP Job or Schedule for manufacturing this item. For subinventory level planning.

Run the associated Mass load Concurrent Program (WIP > Discrete > Import Jobs and Schedules) to ensure that the WIP interface tables have been picked up and processed.• • It is possible to verify that an entry has been made into the table WIP_JOB_SCHEDULES_INTERFACE. Chapter 11 .Page 150 . All rights reserved. l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

2005.Page 151 .Sales orders . demand sources might include the following: .Replenishment Method Selection Replenishment Method Selection Consider the following information when determining the replenishment method to use: • Supply sources • Document created during replenishment • Demand Sources – Although not listed in the table.Forecasts l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 11i Replenishment Fundamentals Chapter 11 .

Agenda l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 2005. Chapter 11 .Page 152 .

2005. All rights reserved.Summary l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 11 .Page 153 .

l a n r e t n I e l c a r O 11i Replenishment Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 154 . 2005. Chapter 11 . All rights reserved.

11i Inventory Accuracy Concepts Chapter 12 l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 12 . All rights reserved.Page 1 . 2005.

All rights reserved. Chapter 12 .Page 2 .11i Inventory Accuracy Concepts l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

Page 3 . All rights reserved. Chapter 12 . 2005.Objectives l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation.

2005.Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.Page 4 . Chapter 12 .

Page 5 .Overview of Inventory Accuracy Overview Oracle Inventory has features that enable you to control and improve the accuracy of your inventory records: • ABC Analysis • Cycle Counting • Physical Inventory l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Inventory Accuracy Concepts Chapter 12 . 2005. All rights reserved.

Page 6 . Chapter 12 . 2005.Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.

The A group usually represents 10% to 20% by number of items and 50%-70% by projected dollar volume. • A Group. 11i Inventory Accuracy Concepts Chapter 12 .Page 7 . • C Group. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.The B group usually represents about 20% of the number of items and about 20% of the dollar volume. and C. • B Group. All rights reserved. This array is then usually split into three classes A. B.ABC Analysis Overview ABC Analysis ABC Analysis is the classification of a group of items in decreasing order of annual dollar volume or other criteria.The C group contains 60%-70% of the number of items and represents about 10%-30% of the dollar volume. 2005.

All rights reserved. 2005.Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation.Page 8 . Chapter 12 .

and can be set up at the organization level or the subinventory level. tools. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Most effective cycle counting systems require the counting of a certain number of items every workday with each item counted at a prescribed frequency. Benefits of Cycle Counting Cycle counting enables you to keep inventory records accurate by correcting errors between the system on-hand (perpetual) and actual on-hand (physical) quantities. Cycle counting can also be a valuable tool to help identify patterns in the errors found. Cycle counting supports scheduled counting based on value or counting by location. You can use cycle counting along with ABC analysis to count items of greater importance more frequently than those of less importance. Analysis of these patterns can suggest and help to prioritize improvements in training. 11i Inventory Accuracy Concepts Chapter 12 .Cycle Counting Overview Cycle Counting With cycle counting. Over a period of time these improvements may increase the average level of inventory record accuracy. inventory is counted on a cyclic schedule rather than once a year. A cycle inventory count is usually taken on regular defined basis.Page 9 . and processes. All rights reserved. 2005.

Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 10 . Chapter 12 . All rights reserved.

11i Inventory Accuracy Concepts Chapter 12 . Physical inventories are usually performed once every six months or once a year depending on the organization requirements. You can perform a physical inventory for an entire organization or for particular subinventories within an organization.Page 11 . 2005. You can perform physical inventories whenever you choose to verify the accuracy of your system on-hand quantities. All rights reserved.Physical Inventory Overview Physical Inventory A physical inventory is a periodic reconciliation of system on-hand balances with physical counts in inventory. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

Page 12 . All rights reserved. 2005. Chapter 12 .Why Perform Physical Inventories? l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation.

All rights reserved. 2005.Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 12 .Page 13 .

l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation.Mobile Inventory Accuracy Overview Mobile Device Inventory Accuracy Oracle Mobile Materials Management provides windows to perform cycle counting and complete physical inventory functions. Chapter 12 . All rights reserved.Page 14 . 2005.

Page 15 . All rights reserved.Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 12 .

Chapter 12 . All rights reserved.Summary l a n r e t n I e l c a r O 11i Inventory Accuracy Concepts ly n O e s U I A O & Copyright © Oracle Corporation.Page 16 . 2005.

Chapter 13 .Page 1 . 2005. All rights reserved.11i Inventory Accuracy Fundamentals Chapter 13 l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

All rights reserved.Page 2 . 2005. Chapter 13 .11i Inventory Accuracy Fundamentals l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

All rights reserved. 2005.Objectives l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 13 .Page 3 .

Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 2005.Page 4 . Chapter 13 .

All rights reserved.Page 5 . Chapter 13 . 2005.Defining an ABC Analysis l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

You choose the compilation criterion.Define and Run an ABC Compilation Explaining ABC Compilation An ABC Compile is a ranking of your items based upon selected criteria. You can define and compile an ABC analysis for your entire organization or for a specific subinventory within your organization. All rights reserved. 2005. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. the cost type to use in determining item values and any additional information that may be conditionally necessary based on your compilation criterion. the scope of your analysis.Page 6 . 11i Inventory Accuracy Fundamentals Chapter 13 .

Assign the sequence number by descending quantity. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. then item X with an on-hand quantity of 10 units is of higher rank than item Y with a quantity of 5 units. Current-On-Hand Value • Use the current on-hand quantity of inventory multiplied by the cost for the cost type. 2005. 11i Inventory Accuracy Fundamentals Chapter 13 . Assign the sequence number by descending value. if you use current on-hand quantity as your compile criterion. For example. you can choose one criterion (such as current on-hand value or MRP demand usage value) to value and rank each item included in the ABC compile.Page 7 . If you use current on-hand value as the criterion and if item X has a cost of $10 per unit and item Y has a cost of $25 per unit. then item Y has a higher value than item X since Oracle Inventory compares $100 ($10x10 units) to $125 ($25x5 units). The criterion that you choose defines what the rank of a particular item will be in the ABC Compile.ABC Compilation Criteria Explaining ABC Compilation Criteria For each distinct compile. Explaining ABC Compilation Criteria Options Current On-Hand Quantity • Use the current on-hand quantity of inventory. All rights reserved.

l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. DRP Demand Usage Value • Oracle Inventory sums the DRP gross requirements for the DRP plan you specify. Assign the sequence number by descending number of transactions. Historical Usage Quantity • Use the historical usage quantity (transaction history) for the time period you specify. Assign the sequence number by descending value. Assign the sequence number by descending quantity. Assign the sequence number by descending quantity. Assign the sequence number by descending quantity. 11i Inventory Accuracy Fundamentals Chapter 13 . Assign the sequence number by descending value. This is the transaction quantities times the unit cost of the transactions for the time period you specify. Assign the sequence number by descending value. DRP Demand Usage Quantity • Oracle Inventory sums the DRP gross requirements for the DRP plan you specify. All rights reserved. then multiplies each by the item cost type you choose in the ABC compile form. MRP Demand Usage Quantity • Oracle Inventory sums the MRP gross requirements for the MRP plan you specify. then multiplies each by the item cost type you choose in the ABC compile form. 2005. Assign the sequence number by descending quantity. Historical Number of Transactions • Use the historical number of transactions (transaction history) for the time period you specify. Assign the sequence number by descending value. Assign the sequence number by descending value. MRP Demand Usage Value • Oracle Inventory sums the MRP gross requirements for the MRP plan you specify. Previous Cycle Count Adjustment Quantity • Oracle Inventory sums the quantity of all cycle count adjustments that have occurred since the last ABC compile date. Forecasted Usage Quantity • Use the forecasted usage quantity.Historical Usage Value • Use the historical usage value (transaction history). Assign the sequence number by descending quantity. Forecasted Usage Value • Use the forecasted usage value based on the forecast quantity calculated and the cost type you specify. Assign the sequence number by descending quantity.Page 8 . then multiplies each by the item cost type you choose in the ABC compile form. Assign the sequence number by descending value. MPS Demand Usage Quantity • Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify. MPS Demand Usage Value • Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify. Previous Cycle Count Adjustment Value • Oracle Inventory sums the value of all cycle count adjustments that have occurred since the last ABC compile date.

Page 9 . All rights reserved. Chapter 13 .Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.

You can do an ABC compile across individual subinventories or across an organization. you have the option of valuing your items across all subinventories in the organization or by the individual subinventory. All rights reserved. Chapter 13 . l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. If you choose to restrict ABC compile to items within a particular subinventory. 2005.ABC Valuation Scope ABC Valuation Scope You can select a valuation scope for determining the ranking of items.Page 10 .

2005. All rights reserved. Chapter 13 .Page 11 .Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

You must also assign a sequence number to each class associated with the ABC group. This allows you to selectively reduce or increase the number of ABC classes you want to use in your item assignments for a particular ABC compile. 2005. you must create a new assignment group with only the desired classes. 11i Inventory Accuracy Fundamentals Chapter 13 . however you cannot delete a class.Page 12 . If you need to delete a class. All rights reserved. You may update an assignment group to add new classes. The class with the lowest sequence number is assumed to have the highest rank and will have higher rank items assigned to that class than the next higher sequence number. Oracle Inventory uses these groups when you automatically assign your items to ABC classes. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. It ensures that you divide your items into the exact number of groupings you specified in the ABC group.Defining ABC Groups Defining ABC Groups ABC assignment groups link a particular ABC compile with a valid set of ABC classes.

those of lower rank to Medium. You can define these classes using your own terminology. Low. 2005. Medium. For example you might define classes High. and those of the lowest rank to low. You must assign an ABC class to at least one ABC group. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Defining ABC Classes Defining ABC Classes You use ABC Classes to identify the value groupings to which your items belong. All rights reserved. 11i Inventory Accuracy Fundamentals Chapter 13 . You can use ABC classes to group items for a cycle count where you count “A” items more frequently than “B” items. When you use ABC classes in this way.Page 13 . and later assign your items of highest rank to high. you perform an ABC analysis and assign items to classes based on analysis results.

ABC Item Assignments When you define ABC assignments you specify the cutoff point for each ABC class. ABC Item Assignments Note % Items: You can enter the percent of number of items compiled from the ABC Descending Value Report to include in each class. Oracle Inventory displays the total inventory value as the default for the last class. You can use any of the following fields to determine the cutoff points: • Seq: You can enter the sequence number from the ABC Descending Value Report for the last item to be included in each ABC class. • Inventory Value: You can enter the cumulative value from the ABC Descending Value Report for the last item to include in each ABC class. Oracle Inventory displays the last sequence number as the default of the last class. 11i Inventory Accuracy Fundamentals Chapter 13 . Oracle Inventory automatically calculates this value if you choose to assign classes by another method. Each ABC class must have at least one item assigned to it and all items in the ABC compile must be assigned to an ABC class. This maximum value is restricted to the total inventory value compiled and is displayed in the Total Compile Value field.Page 14 . Oracle Inventory automatically calculates this value if you choose to assign classes by another method. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Oracle Inventory automatically calculates the maximum value. 2005. All rights reserved.

you know that for the future this item should really be ranked higher. you can change it. Use the Update ABC Assignments form to reclassify this item. Whenever you recompile an ABC analysis or change the method by which you assign your ABC classifications. Oracle Inventory chooses the first item with a value greater than the value entered. % Item. 2005. you lose any changes you might have made to your item assignments. If you are not satisfied with the class into which an item falls as a result of the automatic ABC assignment process. For the Inventory Value. It is possible to have several items in the ABC compile with zero value.Page 15 . then items 1-11 are A items. inventory calculates which items comprise 20% and will include the next item if a partial is in the calculation. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 13 . However. If any item with zero value is in a class other than the last class. you compile your ABC analysis based on historical usage value. If 20% = the first 10 items in your compile. For example. For example. All rights reserved. if the value entered does not exactly match any item. and % Value fields. A new item in your inventory is ranked low because it has little transaction history.% Value: You can enter the percent of total compile value from the ABC Descending Value Report to include in each class. All items are reclassified based on their new ranks in the ABC Descending Value Report and the method you choose to determine cutoff points. plus part of the 11th item. Oracle Inventory automatically calculates this value if you choose to assign classes by another method. you may only assign items using the sequence number or item percent. if you choose 20% to be A items.

Guided Demonstration Overview: Compiling an ABC Analysis l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 16 . Chapter 13 . 2005. All rights reserved.

4. Note: Note the concurrent request number. 11. 14.Guided Demonstration . 2005. Choose Yes to print the compile results.ABC Analysis Responsibility: Inventory. 2. (M) File > New. Create three ABC Classes using the following information. 5. Choose New. 10. 9. 6. Select the FGI subinventory. Select Current on hand quantity as the compile criterion. Note: Note the concurrent request number. Choose Compile. (N) ABC Codes > ABC Compiles. 7. Choose subinventory as the valuation scope.Page 17 . Enter Finished Goods Analysis as the description. Choose Close Form Creating ABC Classes 12. 3. 11i Inventory Accuracy Fundamentals Chapter 13 . Enter Finished Goods as the compile name. 8. Choose subinventory as the content scope. (N) ABC Codes > ABC Classes. 13. All rights reserved. − Class Name: Finished Goods A − Description: Finished Goods Class A − − − − − Class Name: Description: Class Name: Description: Finished Goods B Finished Goods Class B Finished Goods C Finished Goods Class C l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Vision Operations USA Creating an ABC Compile 1.

Choose Assign Items. (M) File > Save. − Finished Goods A − Finished Goods B − Finished Goods C 23. Note: Note the Concurrent request number.Page 18 . (M) File > Save. Enter the following percentage values. (M) File > Close Form. − A items: 50% − B items 80% − C items populates automatically 26. 16. ABC Assignment Groups 17. (N) ABC Codes > ABC Assignment Groups. 25. (M) File > Save and Proceed. 18. (M) File > New. Enter Finished Goods ABC as the Group Name. (M) File > Close Form. All rights reserved. 19. 2005. 20. Choose the following ABC Classes. 27. Chapter 13 .15. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 24. 21. Enter Finished Goods as the compile name. Choose Group Classes. 22.

Chapter 13 .Practice Overview: Compiling an ABC Analysis l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.Page 19 . 2005.

Assumptions • • You are skilled in Oracle Navigation.Compiling an ABC Analysis Overview In this practice you will compile an ABC analysis. All rights reserved. These items are associated with standard costs. You can use part numbers from other teams as well as system items that begin with AS. 11i Inventory Accuracy Fundamentals Chapter 13 .Practice . Compile an ABC analysis 1. Note: Receive at least one system item. Tasks Receive Items Receive 20 items of your choice in to your ##FGI subinventory. 2005. CM. Be sure to receive different quantities of each item ranging from 5-100. or SB. Define three ABC Classes using the following naming convention: − Name: ##Class A − Description: A items − Name: − Description: − Name: − Description: ##Class B B items ##Class C C items l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Page 20 . Compile an ABC Analysis using the following information: − Name: ##FGI ABC − Description: ABC Complie for Team ##FGI − Content and Valuation Scope: Subinventory − Subinventory: ##FGI − Criterion: Current on hand quantity − Cost Type: Frozen Define ABC Classes 2. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

All rights reserved. 2005. Change one item from a C item to an A item. Assign item valuation as follows: − ##Class A: 50 − ##Class B: 80 − ##Class C: (system calculates) Update ABC Codes 6. Define an ABC group using the following information − Group Name: ##ABC Group − Compile Name: ##FGI-ABC Define an ABC Sequence 4.Page 21 . and change one item from a C item to a B item. Define an ABC Sequence using the following information: • Class Name − ##Class A − ##Class B − ##Class C Assign Item Valuation 5.Define an ABC Group 3. Chapter 13 . l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

___________________ Select Yes to print results. (N) ABC Codes > ABC Compiles (M) File > New Compile an ABC Analysis using the following information: − Name: ##FGI-ABC − Description: ABC Complie for Team ##FGI − Content and Valuation Scope: Subinventory − Subinventory: ##FGI − Criterion: Current on hand quantity − Cost Type: Frozen • • l a n r e t n I e l c a r O ly n O e s U I A O & Select Compile.Solution – Compiling an ABC Analysis Compile an ABC Analysis Responsibility = Inventory. • • 2. and note your request number. _________________ Copyright © Oracle Corporation. 2005. Navigate to the ABC Compile window. Vision Operations USA 1. All rights reserved. 11i Inventory Accuracy Fundamentals Chapter 13 .Page 22 . and note your report request number.

Navigate to the ABC Classes window. • (N) ABC Codes > ABC Assignment Groups. Save and Close window.Page 23 . 2005. (N) ABC Codes > ABC Classes (M) File > New Define three ABC Classes using the following naming conventions: − Name: ##Class A − Description: A items − Name: − Description: − Name: − Description: ##Class B B items ##Class C C items 5. ly n O e s U I A O & 11i Inventory Accuracy Fundamentals Chapter 13 . • • 4. • • (M) File > Save. Copyright © Oracle Corporation. All rights reserved. Define an ABC Group 6. Navigate to the ABC Assignment Groups window. l a n r e t n I e l c a r O (M) File > Close Form.Define ABC Classes 3.

Define an ABC Sequence using the classes you created earlier. • Select Group Classes Define an ABC Sequence 8.• 7. Chapter 13 . • Class Name − ##Class A − ##Class B − ##Class C l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. (M) File > New. All rights reserved. Define an ABC group using the following information: − Group Name: ##ABC Group − Compile Name: ##FGI-ABC Note: Make sure that ##ABC Group (the group that you created) is selected.Page 24 . 2005.

Chapter 13 . Save your work.Page 25 .9. Select Assign Items. Enter the following percentages in the % Items field: − ##Class A: 50 − ##Class B: 80 − ##Class C: (system calculates) l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. All rights reserved. • (M) File > Save Assign Item Valuation 10. 11.

Review and update the ABC codes assigned to items in the ##FGI subinventory.Page 26 . Chapter 13 . Select Assign. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. All rights reserved. Update ABC Codes 13.12. • • Select ##ABC Group in the ABC Assignment Groups window. Select Update Items.

2005. (M) File > Save. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 13 .Page 27 .• • • • Change one item from ##Class C to ##Class A. (M) File > Close Form. Change one item from ##Class B to ##Class C. All rights reserved.

All rights reserved.Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 13 . 2005.Page 28 .

Defining and Maintaining a Cycle Count l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 13 . All rights reserved. 2005.Page 29 .

Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved.Page 30 . 2005. Chapter 13 .

Cycle Count Approval Tolerance Cycle Count Approval Tolerance A cycle count is a count of a subset of items. All rights reserved. the cycle count will be compared to an approval tolerance.Page 31 . Chapter 13 . When the actual count and the system’s on-hand quantity do not exactly agree. counted during the working day rather than after freezing stock levels. 2005. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

When a particular cycle count entry results in an adjustment that exceeds any one of these limits. 2005. you can specify a positive and a negative limit which can differ from each other. 11i Inventory Accuracy Fundamentals Chapter 13 .Page 32 . You express positive and negative quantity variance tolerances as percentages of the system on-hand quantity. You enter these percentages when you define your: • Cycle Count Header • Cycle Count Classes • Cycle Count Items l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. this adjustment is either posted automatically or held for approval. For each type. you have a cycle count adjustment that exceeds approval tolerances. Quantity Variance Tolerance: The Quantity Variance Tolerance is a user-defined limit for the difference between the actual cycle count quantity and the system tracked on-hand quantity. All rights reserved. Quantity Variance Tolerance and Adjustment Value Tolerance. Based on the approval option you choose when you define your cycle count.Approval Tolerances Approval Tolerances Oracle Inventory supports two types of cycle count approval tolerances.

All rights reserved. Oracle Inventory uses the values you define at the cycle count class level first. Chapter 13 . If you have no tolerances defined for the header. If you do not have any defined for an item. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Oracle Inventory uses any percentages you define at the cycle count item level first. If you do not have any defined for the class. it uses the tolerances defined for that item’s cycle count class. If you do not have any defined for an item’s class. If you have no tolerances defined for the header. You enter these tolerances when you define your cycle count header and cycle count classes. An adjustment value is out of tolerance if it falls outside of these amounts. • The adjustment value is calculated as: adjusted value = (system on-hand qty – actual count qty) * current item cost The Adjustment Value Tolerance is expressed as positive and negative amounts in your functional currency. 2005.Page 33 . it uses the tolerances at the cycle count header level. Oracle Inventory assumes that there is no limit to the approval tolerance. Adjustment Value Tolerance: The Adjustment Value Tolerance is a user-defined limit for the total value of a cycle count adjustment. Oracle Inventory assumes that there is no limit to the approval tolerance. it uses the values at the cycle count header level.

and a “miss” if it is outside them. and all variances are therefore “hits” regardless of the size. it uses the tolerances at the cycle count header level. If you do not have any defined for an item’s class. You enter Hit/Miss tolerance percentages when you define your cycle count header and when you define your cycle count classes. Inventory uses these tolerances to generate the Cycle Count Hit/Miss Analysis report which will be covered later in this course. If you have no tolerances defined for the header. You express positive and negative hit/miss tolerances as percentages of the system on-hand quantity. Oracle Inventory assumes that there is no limit to the Hit/Miss tolerance. All rights reserved. A count is considered a “hit” if it is within these tolerances. 2005.Page 34 . Oracle Inventory uses the percentages you define at the cycle count class level first. The Hit/Miss Tolerance allows you to evaluate the actual accuracy of your inventory. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Inventory Accuracy Fundamentals Chapter 13 .Hit/Miss Tolerance Hit/Miss Tolerance The Hit/Miss Tolerance is a user-defined limit for the difference between the system tracked on-hand quantity and the actual cycle count quantity.

l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. You specify measurement errors when you define or update an item at the Master Item or Organizational Item level. you might want to allow for measurement errors. 11i Inventory Accuracy Fundamentals Chapter 13 . For example.Measurement Errors Measurement Errors: Negative and positive measurement errors are user-defined limits for the difference between the cycle count quantity and the system tracked on-hand quantity. or you use their weight to approximate the quantity. You would typically use this feature on an exception basis for items you cannot accurately count. you do not perform a cycle count adjustment. All rights reserved. Measurement Error limits are assigned by Item. measurement errors may implicitly override any approval tolerances you specify. 2005.Page 35 . Inventory does not make any adjustments to an item whose cycle count quantity differs from the system tracked on-hand quantity by less than the measurement error. Therefore. Because of this. Use measurement errors with extreme caution since they actually prevent cycle count adjustments from taking place. if your system tracked on-hand quantity for the bolts in that bin is within an acceptable range. if you visually check the level of bolts in a bin to estimate the quantity.

Oracle Inventory automatically includes all items in the ABC group you choose in your cycle count. 2005. You can also choose to have any items that are no longer in the ABC group automatically deleted from the cycle count list.Cycle Count Items Cycle Count Items You must load items into your cycle count before you can schedule or count them. All rights reserved. You can change the classifications of your items for your cycle count independent of the ABC classes. 11i Inventory Accuracy Fundamentals Chapter 13 . delete. Using the Cycle Counts window. you can choose whether to automatically update class information for existing items in the cycle count based on the new ABC assignments. Once you have generated your list of items to count from an ABC group. Inventory also copies the ABC classes for that ABC group into the current cycle count classes and maintains the same classifications for the included items. or update the items you want included/excluded When you specify an existing ABC group. There are two methods you can use to do this: • Specify an existing ABC group from which to automatically load your items • Manually enter. you can periodically refresh the item list with new or reclassified items from a regenerated ABC group.Page 36 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

All rights reserved. or update the items you want included/excluded using the Cycle Count Items window.Page 37 . delete. 2005. You may want to use this window to load all your items for a cycle count or to simply add items as they are defined in the system rather than recompiling your ABC group and doing a complete reinitialization. Chapter 13 . l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.You manually enter.

Chapter 13 .Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005.Page 38 . All rights reserved.

If your schedule interval is days. it schedules counts only for the schedule interval you defined for the cycle count header. So if your schedule interval is weeks. 11i Inventory Accuracy Fundamentals Chapter 13 . All rights reserved.Page 39 . Oracle Inventory schedules all items that you need to be counted on all of the workdays in the current week.Each time the auto scheduler runs.Automatic Scheduling Automatic Scheduling In order for Oracle Inventory to perform automatic scheduling you must do the following: • Set the Cycle Count Enabled item attribute to Yes for the items you want to include in the cycle count. then Oracle Inventory only schedules those items that are due for counting on the current date. • Enable automatic scheduling when you define your cycle count. . 2005. • Request the schedule using the Generate Automatic Schedule Requests window. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

2005. Since manually scheduled counts have no impact on automatically scheduled counts. and set the count for any inventory date. you could enter a request to count item A wherever it can be found in subinventory X. 11i Inventory Accuracy Fundamentals Chapter 13 .Manual Scheduling Manual Scheduling You can request counts for specific subinventories. You then need to enter the schedule requests for each locator. and items. you can potentially count some items more frequently than you had initially planned.Page 40 . All rights reserved. Physical Location Scheduling You can use this feature to execute location-based cycle counting. locators. You first need to generate a schedule for counting each subinventory and locator. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. locator B-100. For example. specifying the schedule date. Or you could request to count all item quantities in subinventory Y.

All rights reserved. revision. As the count requests are derived from the state of on-hand balances at the time the Generate Cycle count Requests process is run. then by item. Count Requests for Items with Zero Count By default Oracle Inventory does not automatically generate requests to count items with an on-hand quantity of zero. subinventory and locator combination for which on-hand quantities exist. The count request generator does not create duplicate count requests. querying and rapid count entry. and lot. To include such items: l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.Page 41 . but instead cross-references one count request back to each associated schedule request. lot number. you should wait to run it until you are ready to count. Note: When you schedule an item to be counted using manual scheduling. 11i Inventory Accuracy Fundamentals Chapter 13 . some schedule requests may have overlapping count requirements.Count Requests Count Requests This process takes the output of the automatic scheduler and your manual schedule entries and generates a count request for each item number. These count requests are ordered first by subinventory and locator. revision. Oracle Inventory assigns a unique sequence number to each count request that can be used for reporting. 2005.

The count request generation process automatically creates a count request.” Oracle Inventory generates this warning if it cannot find all levels of inventory control defined for the item. if an item is under predefined locator control be sure it is assigned to a subinventory and locator. Chapter 13 . enter an unscheduled count using either the Cycle Count Entries or Approve Adjustments window. If a quantity is found and counted. All rights reserved. For example.• Define all sourcing details and inventory controls for the item. To make an adjustment and update the missing information. you may receive a warning message stating “Zero count. • Select the Generate Zero Counts option when you define your cycle count. an adjustment is made. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 42 . no adjustment performed. 2005. In this situation. enter the count but no adjustment is performed. At count entry.

you can specify a range of count request sequences assigned to one person so they can be entered in the same order they were printed on the count sheet.You can also enter unscheduled count entries. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. You can use unscheduled counts to perform location based cycle counts. Oracle Inventory automatically queries all count requests for which you have not yet entered a count. For example. All rights reserved. You can use flexible search criteria to specify the group of count requests for which you want counts entered to speed up the count entry process. 11i Inventory Accuracy Fundamentals Chapter 13 .Entering Cycle Counts Entering Cycle Counts You can use the same window to enter counts of items requested through automatic or manual cycle count scheduling. if they are allowed for your cycle counts. 2005.Page 43 . You can also use a mobile device to enter cycle count quantities.

All rights reserved.Page 44 . Export Cycle Count Request This process enables you to export cycle count requests into external systems.Cycle Count Open Interface Cycle Count Open Interface You can import/export cycle count entries from external systems into Oracle Inventory using the Cycle Count Entries Open Interface. 2005. Update Cycle Count Open Interface This process enables you to update cycle count entries. Print Cycle Count Entries Open Interface Data This process enables you to print cycle count entries open interface data. Purge Cycle Count Entries Open Interface Data This process enables you to purge all cycle count entries from the open interface. 11i Inventory Accuracy Fundamentals Chapter 13 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. Import Cycle Count Entries from Open Interface This process enables you to import cycle count entries open interface records into the database.

Page 45 . All rights reserved. 2005.Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 13 .

Page 46 . All rights reserved.Count Adjustments and Approvals Count Adjustments and Approvals Once you enter and save your cycle counts. Chapter 13 . Oracle Inventory determines whether any adjustments need to be made depending on the approval options and tolerances you set when you define the cycle count. 2005. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

Automatic Recounts Automatic Recounts If you turn on the Automatic Recount option when you define your cycle count. Oracle Inventory submits recounts as many times as necessary. Oracle Inventory automatically submits recount requests for items that are outside the limits of the approval tolerances you specify. Any count request with the Recount status automatically appears on the next cycle count listing. limited by the maximum automatic recounts you specify for the cycle count.Page 47 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Inventory Accuracy Fundamentals Chapter 13 . You can manually request recounts when you are approving adjustments. This recount request will be included in the next cycle count listing. Oracle Inventory holds the count for approval. 2005. After you reach the maximum number of recounts. All rights reserved.

Oracle Inventory determines which counts need approval by using the approval tolerances you entered while defining your cycle count. You can use flexible search criteria to specify the cycle count adjustments you want to review or approve. variance percentage. You can approve adjustments. to request/approve recounts. reject the count or take no action until further investigation takes place. variance value. or to reject the adjustment. or approve cycle counts pending approval. and system quantity. recount an item in question. 11i Inventory Accuracy Fundamentals Chapter 13 .Approving Cycle Counts and Adjustments Approving Cycle Counts Held for Approval Employees with access to the Count Adjustment Approvals Summary window can query.Page 48 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Select the information from the following tabbed regions: • Adjustment: View information for the count adjustment UOM. Using the Count Adjustment Approvals Summary window. Approving Cycle Count Adjustments You use the Count Adjustment Approvals Summary window to approve cycle count adjustments. you can view a variety of current item information to help determine whether to approve an adjustment. You can query all counts or only those pending approval. All rights reserved. variance quantity. request the recount of.

This window is a combination block which you can use to view and enter approval and adjustment information for the current line instead of using the Count Adjustment Approvals Summary window. An adjustment is not posted. All rights reserved. • Select Recount to process a recount request for the selected count request. No further processing of this count entry takes place. Class: View information for the sequence number. Adjustments region. or reject cycle count entries that are pending approval. An adjustment is not posted. and count date. You can also view the unit of measure and adjustment quantity. Approval Actions and Adjustments Options For items appearing in the Approval Actions. You can also view the unit of measure and adjustment quantity. For the current item. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. counter. • Select Rejected to reject the selected count record. count quantity. Reference: View or update the transaction reason and reference information. request a recount. this window displays count and variance information for the current. You can display count history information or open the Count Adjustment Approvals window. Chapter 13 .• Item Location: View information for subinventory and locator. • Count: View information for UOM. • Count Status. • Item Details: View information for a revision.Page 49 . • Approval: View information for date approved and approver. you can approve. You can also approve or reject any count for which a recount has already been requested. and serial number. • Reason. You can also view the unit of measure and adjustment quantity. lot number. You can reject any cycle count request that has not yet been counted. • Select Approved to approve the selected count entry and post the adjustment to the transaction manager for processing. • Select the Count History button to open the Count History window for the current item. • Select the Open button to open the Count Adjustment Approvals window for the current line. prior and first counts. and cycle count class. count status. 2005.

All rights reserved. 2005. Chapter 13 .Page 50 .Guided Demonstration Overview: Performing Cycle Counts l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

8. Enter the following ABC Information: − Group: Group created during ABC analysis (Finished Goods ABC) − Option: (Re)initialize 11. 3. Enter the following cycle count information.Page 51 . 12. Choose Classes.Guided Demonstration . (T) Serial and Schedule Enter the following Serial and Schedule information: − Auto Schedule: Yes − Frequency: By period (T) Adjustments and ABC Enter the following approval tolerances: − Qty Variance: 3 − Adjustment Value: 50 − Hit / Miss Analysis: 10 4. All rights reserved. 2005. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Inventory Accuracy Fundamentals Chapter 13 . Select the FGI subinventory from the drop down list. 9.Cycle Counting Responsibility: Inventory. Enter the following ABC Class information: − Class: Class A class created during ABC analysis (Finished Goods A) − Count: 150 − Class: Class B class created during ABC analysis (Finished Goods B) − Count: 100 − Class: Class C class created during ABC analysis (Finished Goods C) Copyright © Oracle Corporation. 7. Vision Operations USA 1. 5. Choose New. 6. (N) Counting > Cycle Counting > Cycle Counts. − Name: FGI Cycle Count − Description: Finished Goods Cycle Count − Adjustment Account: Miscellaneous − Late Days: 1 − Starting Sequence: 0 − Unscheduled Entries: Yes − Display System Qty: Yes Select Specific in the Count Subinventories alternative region. 10. 2.

− Count: 13. 23. Enter the following cycle count information: − Org Code: M1 − Cycle count name: FGI Cycle Count − Subinventory: FGI − Item: AS18947 − Quantity: Enter a number plus or minus the system quantity. Select Normal 22. (M) File > Close Form. Choose Submit. 16. 26. Select Cycle Count 21. 27. 17. All rights reserved. 2005. Cycle Count Entries and Approvals 24. (M) Tools > Perform Full Cycle Count 15. Entering Cycle Count Entries Using a Mobile Device 18. Select Counting 20. Choose Adjustments. Select Done. Enter FGI Cycle Count in the Cycle Count field. Enter the cycle count name for the following parameters − Generate automatic schedule recount − Generate cycle count request − Cycle count listing. Select Inventory. (M) File Save. 28. 19. At the question: “Find all open count requests?” choose Yes to view all open cycle count items. Copyright © Oracle Corporation. Note: Notice the item amount entered during the mobile counting demonstration does not appear. Choose find. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Inventory Accuracy Fundamentals Chapter 13 .Page 52 . (N) Counting > Cycle Counting > Cycle Count Entries 25. 50 14.

Approve or reject the remaining items. Note: Notice the item quantity entered in the mobile counting demonstration appears in the Count tabbed region. Enter the count quantities. 43. (M) File > Close Form. 39. Choose Approved to approve an item adjustment. Chapter 13 . Close the Approvals window. 38. Choose Find. Enter FGI Cycle Count in the Cycle Count field. 31. At the question: “Query count pending approval only?” choose No to view all cycle count items. (M) File > Close Form. 42. 41. All rights reserved. (M) File Save. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 35. Choose OK. (M) File > Save.Page 53 . (N) Counting > Cycle Counting > Approve Counts 33. 37. 2005.29. 36. 30. 34. 40. (M) File > Save. Select the Approver from the drop down list in the Approval tabbed region. 32.

Practice Overview: Performing Cycle Counts l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 54 . 2005. All rights reserved. Chapter 13 .

Performing a Cycle Count Overview In this practice you will perform a cycle count using the ABC compile group you created in a previous lab. Assumptions • • • • • You are skilled in Oracle Navigation. 11i Inventory Accuracy Fundamentals Chapter 13 .Practice . You have at least 20 items in your ##FGI subinventory You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.Page 55 . All rights reserved. You completed the Compile an ABC Analysis practice. Vision Operations USA Tasks Define a Cycle Count Header Define a cycle count header using the following information: − Name: ##Cycle Count − Description Team ##Cycle Count − Adjustment Account: Miscellaneous − Late Days: 1 − Starting Sequence: ## − Unscheduled entries Yes − Display System qty: Yes − Count Subinventories: Specific − Subinventory: ##FGI − Auto Schedule: Yes − Frequency: By Period − Approval Required: If out of Tolerance − QTY 3% − Adjust Value: 50 − Hit/Miss: 10% − Group: ##ABC Group − Option: (Re)initialize − Class A: 150 counts per year l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. You completed the Define Items practice. 2005. Responsibility = Inventory.

− Class B: − Class C: Perform a Cycle Count 100 counts per year 50 counts per year Use the following parameters to perform a cycle count: − Name: Generate Automatic Schedule − Cycle Name: ##Cycle Count − Name: − Cycle Name: − Name: − Cycle Name: Generate CycleCount Requests ##Cycle Count Cycle Count Listing ##Cycle Count Enter Cycle Count Entries View the system quantities and enter quantities for the cycle count.Page 56 . Reject or recount all entries for your cycle count. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. All rights reserved. 2005. Reject or Recount Cycle Count Why are some of the items already approved? ________________________________________ Approve. Have some of the items out of tolerance. Chapter 13 . Approve. and have at least one item match the system quantity.

(N) Counting > Cycle Counting > Cycle Counts Select New.Page 57 . Vision Operations USA 1. All rights reserved. • 2. 2005. Chapter 13 .Solution – Performing a Cycle Count Define a Cycle Count Header Responsibility = Inventory. 3. Enter a new cycle count header using the following information: • (T) Scope and Control − Name: − Description − Adjustment Account: − Late Days: − Starting Sequence: − Unscheduled entries − Display System qty: − Count Subinventories: − Subinventory: ##Cycle Count Team ##Cycle Count Miscellaneous 1 ## Yes Yes Specific ##FGI l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Navigate to the Cycle Counts Window.

All rights reserved.• (T) Serial and Schedule − Count: − Auto Schedule: − Frequency: (T) Adjustments and ABC − Approval Required: − QTY − Adjust Value: − Hit/Miss: − Group: − Option: Not Allowed Yes By Period • l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals If out of Tolerance 3% 50 10% ##ABC Group (Re)initialize ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 13 .Page 58 .

2005.Page 59 . All rights reserved. Chapter 13 .• Select Classes − ##Class A: − ##Class B: − ##Class C: 150 counts per year 100 counts per year 50 counts per year l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

(M) Tools > Perform Full Cycle Count l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Chapter 13 .Page 60 . (M) File > Save Perform A Cycle Count 5.4. All rights reserved.

2005. Enter the following parameters − Generate automatic schedule (Parameters field): ##Cycle Count l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & ##Cycle Count − Generate cycle count requests (Parameters field): Copyright © Oracle Corporation. Chapter 13 . All rights reserved.Page 61 .6.

Chapter 13 . Select Find to populate your items. 10. Enter Cycle Count Entries 8.Page 62 . or select your cycle count from the list of values.− Cycle Count Listing (Parameters field): ##Cycle Count 7. Navigate to the Cycle Count Entries window. All rights reserved. (N) Counting > Cycle Counting > Cycle Count Entries Enter ##Cycle Count in the Cycle Count name field. 2005. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. • 9. Select Submit Note: Do not proceed until after your concurrent request completes.

l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. a few quantities within tolerance. Choose Yes to see all open count requests. All rights reserved. Chapter 13 . Enter Count quantities for your items.11.Page 63 . (T) Adjustments 13. and at least one that matches the system quantity. 2005. 12. Enter a few quantities that are out of tolerance.

14. Reject or Recount Cycle Count 15. Save and Close window.Page 64 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 11i Inventory Accuracy Fundamentals Chapter 13 . Select Find to open your cycle count items. Select your cycle count from the LOVs in the Cycle Count field. All rights reserved. 18. 2005. • (N) Counting > Cycle Counting > Approve Counts 16. Select No to view all items. 17. • • (M) File > Save (M) File > Close Form Approve. Navigate to the cycle count approvals window.

All rights reserved. Save and Close window. Approve. • • (M) File > Save (M) File > Close Form l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.Page 65 .19. 2005. Chapter 13 . 20. reject or recount your items. 21. Why are some of the items already approved? They fall within set approval limits.

Practice Overview: Mobile Counting l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Chapter 13 . 2005. All rights reserved.Page 66 .

Chapter 13 . You have completed part one of the Cycle Counting lab.Mobile Counting Overview Use the mobile device to perform a cycle count for your ##FGI subinventory.Practice .Page 67 . Assumptions • • • You have completed the ABC Analysis Lab. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. 2005. Tasks Entering Item Quantities Using the Mobile. All rights reserved. Enter cycle count quantities for an item.

Select Default from the Device List. 3. Note that “Materials & Mfg” responsibility must be assigned to your user name. 2005. Enter your user name and password. 2.com 7070 in the Run dialog box. All rights reserved.Page 68 . 11i Inventory Accuracy Fundamentals Chapter 13 . − Windows Start menu > Run − Enter telnet esxxxx. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. where xxxx is the instance number. Start the Telnet session.oracle.Solution – Mobile Counting Entering Item Quantities Using the Mobile Responsibility = Materials & Mfg 1.

2005. 5.4. All rights reserved. select Materials & Mfg from the list. Select Inventory from the Materials & Mfg Menu. If more than one responsibility had been assigned to your user name.Page 69 . 11i Inventory Accuracy Fundamentals Chapter 13 . l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation.

Page 70 . Select Cycle Count from the Counting Menu. l a n r e t n I e l c a r O ly n O e s U I A O & Copyright © Oracle Corporation. 7. 2005. All rights reserved.6. 11i Inventory Accuracy Fundamentals Chapter 13 . Select Counting from the Inventory Menu.

Select Normal from the Cycle Count menu. Org Code: M1 Cycle Count Name: ##Cycle Count Sub: ##FGI Item: Enter an item in your ##FGI subinventory Qty: Enter a quantity Copyright © Oracle Corporation.Page 71 .8. Note: − − − − − The mobile application screen is case sensitive. Enter the following information when prompted. All rights reserved. 2005. 9. l a n r e t n I e l c a r O ly n O e s U I A O & 11i Inventory Accuracy Fundamentals Chapter 13 .

Chapter 13 .Page 72 . 11. Select Done to apply your cycle count.10. l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation. Select Logout to exit the Mobile. All rights reserved. 2005.

All rights reserved. 2005. Chapter 13 .Page 73 .Agenda l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.

Chapter 13 . All rights reserved.Page 74 . 2005.Summary l a n r e t n I e l c a r O 11i Inventory Accuracy Fundamentals ly n O e s U I A O & Copyright © Oracle Corporation.