11i Replenishment Fundamentals PDF

11i Replenishment Fundamentals
Copyright 2005, Oracle. All rights reserved.
Objectives
After completing this module, you should be able to do the following: Perform Forecasting Perform Reorder point planning Perform !in ma" planning Perform replenishment counting #enerate $anban cards %et up available to promise &A'P( Perform A'P chec$s %et up inventory planning profile options )dentify )mplementation *onsiderations
Agenda
Overview Forecasting Performing Reorder point planning Performing !in ma" planning Performing replenishment counting #enerating $anban cards %etting up available to promise &A'P( %etting up )nventory profile values )dentify )mplementation *onsiderations %ummary
Overview
Replenishment !ethods Available %upply Reorder point Available to Promise !in ma" Planning setup Replenishment counting +anban replenishment
Planning profile options
Agenda
Overview Forecasting Performing Reorder point Planning Performing !in ma" Planning Performing replenishment counting #enerating $anban cards %etting up available to promise &A'P( %etting up )nventory profile values )dentify )mplementation *onsiderations %ummary
Focus Forecasting
Forecast , actual demand in the same period of the previous year -"ample: .emand for April /000 , .emand April 1111
Forecast , actual demand in the previous period this year -"ample: .emand for April /000 , .emand for !arch /000
Focus Forecasting &continued(

6
Forecast , &actual demand in previous period this year 2 actual demand two periods ago this year( 3 / -"ample: .emand for April /000 , &!arch /000 2 February /000( 3 /
Forecast , actual demand in the same period last year 5 &actual demand in the previous period this year 3 actual demand in the previous period before the same period last year( -"ample: .emand for April /000 , .emand in April 1111 5 &!arch /000 3 !arch 1111(
Focus Forecasting &continued(
Forecast , actual demand in the previous period this year 5 &actual demand in previous period this year 3 actual demand two periods ago this year( -"ample: .emand for April /000 , .emand for !arch /000 5 &.emand for !arch /000 3 .emand for February /000(
8sing Focus Forecasting

<ast =ear .emand :an //0 Feb /10 !ar /70 Apr /;0
'his =ear .emand :an />0 Feb /77 !ar /10 Apr ???
Focus forecasting assumes that the forecasting method that wor$ed best the previous period will wor$ best for the current period9
Focus Forecasting -"ample

Actual demand history for years /000 and /001
Forecast =ear /000 /001
:anuary //0 />0
February /10 /77
!arch /70 /10
April /;0 ???
@uestion: 8sing Focus forecasting methods, what is the forecast for April /001?
%tatistical Forecasting
%tatistical forecasting uses e"ponential smoothing to e"trapolate demand from previous periods9 'he statistical forecast methods that you can use with Oracle )nventory include the following: -"ponential smoothing forecast &-%F( 'rend enhanced forecast &'-F( %eason enhanced forecast &%-F( 'rend and %eason enhanced forecast &'%-F(
-"ponential %moothing Forecast &-%F(
-%Ft
, -%Ft1 2 5 & At 1 A -%Ft 1 ( , 5 At1 2 & 1 A ( 5 -%Ft1
Bhere: -%Ft -%Ft 1 At At 1 , Primary smoothing factor &0 C , C , 1( , %moothed forecast at the end of period t , %moothed forecast at the end of previous period t-1 , Actual demand for period t = Actual demand for the previous period t-1
'rend -nhanced Forecast &'-F(

Dt Rt '-Ft Bhere: , Primary smoothing factor &0 C , , 'rend smoothing factor &0 C , C , 1) C , 1) , 5 At1 2 & 1 ( 5 '-Ft 1 , 5 & Dt Dt 1 ( 2 &1
( 5 Rt 1
, Dt + Rt
At 1 Dt Rt '-Ft1
, Actual demand of the previous period t-1 , Dase value computed at the end of period t , 'rend value computed at the end of period t , 'rend enhanced forecast computed at the end of the previous period t-1
%eason -nhanced Forecast &%-F(

Dt %t %-Ft Bhere: At 1 Bt Bt 1 St St 1 %-Ft , Primary smoothing factor &0 C , C , 1) C , 1) , %easonal inde" smoothing constant &0 C , , Actual demand for the previous period t-1 , Dase value computed at the end of period t , Dase value computed at the end of period t-1 , Adjusted seasonal inde" for period t, one period ago , Adjusted seasonal inde" for period t-1, one period ago , %eason enhanced forecast for period t
5 & At 1 3 % t 1 ( 2 & 1 ( 5 D t 1
, 5 &At 3 Dt( 2 & 1 A ( 5 %t 1 , Dt 5 %t1
'rend and %eason -nhanced Forecast &'%-F(

St Bt Rt , , , 5 EAt 3 &Dt 2 Rt (F 2 E& 1 ( 5 St 1 F 5 &At1 3 %t 1 ( 2 & 1 ( 5 & Bt 1 2 Rt 1 ( 5 & Bt Bt 1 ( 2 & 1 ( 5 Rt1 Bhere: C , 1)
TSEFt , & Dt 2 Rt( 5 St1 At-1 Dt Rt %t
, %moothing constant for the average &0 C ,
, %moothing constant for the trend &0 C ,
C , 1) C , 1)
, %easonal inde" smoothing constant &0 C , , Actual demand for the previous period t-1 , Dase value at the end of period t , 'rend value computed at the end of period t
= Adjusted seasonal inde" for period t, one period ago

Forecast %etup and !aintenance

Focus and %tatistical forecast setup and maintenance steps
1 / 6 4 7
.efine forecast set .efine forecast rules #enerate forecasts !aintain forecasts 8se forecasts
#uided .emonstration Overview: *reating a !anual Forecast
)n this demonstration the instructor illustrates how to create a manual forecast9
Practice Overview: *reating a !anual Forecast
)n this practice you will learn how to create a manual forecast9
Agenda
8ses of Reorder point Planning
Dy OrganiGation
)ndependent .emand
)tem .efinition
)ne"pensive )tems
Reorder point Planning: %afety %toc$
@uantity
Reorder Point %afety %toc$ 'ime
Reorder Point Planning: <ead 'ime
@uantity
Reorder Point %afety %toc$
<ead time 'ime
Reorder Point Planning: Reorder @uantity
@uantity
Reorder Point %afety %toc$ 'ime
Reorder @uantity
Reorder Point Planning %teps

1
-nter item planning attributes9
Forecast item demand9
.efine safety stoc$s9
Run Reorder point report9
-ntering )tem Planning Attributes

-ntering item planning attributes includes setting up general planning attributes9 At this point, you also enter the following: #eneral Planning Attributes <ead times %afety stoc$
-ntering #eneral Planning Attributes for Reorder point Planning

%elect Reorder point as the inventory planning method9 -nter a carrying cost percent9
-nter an order cost9
%pecify a fi"ed lot siGe multiplier9 &Optional(
%pecify a minimum order Huantity9 &Optional(
%pecify a ma"imum order Huantity9 &Optional(
-ntering <ead 'imes

-nter preprocessing lead time9 -nter processing lead time9
-nter postprocessing lead time9
-ntering %afety %toc$s
@uantity
Percentage !ean absolute deviation
Performing Reorder point Planning
Forecast
On order Huantity information
Planning )nformation
*reating reHuisitions
Report %ubmission
#uided .emonstration: Reorder Point Planning

)n this guided demonstration the instructor will perform reorder point planning9
Agenda
8ses of !in ma" Planning

%tructure )tems
-ntire OrganiGation
)ndependent .emand
%ubinventory
'ightly *ontrolled
!in ma" Planning

.etermine minimum and ma"imum Huantities -nter minimum Huantity
-nter ma"imum Huantity .o you want specific lot increments? Io Run !in ma" report =es -nter fi"ed lot increments -nter minimum order Huantity -nter ma"imum order Huantity
!in ma" Planning: Bhen to Order?
Delow minimumJ
'ime to order
!in ma" Planning: Kow !uch to Order?

'he following eHuation represents how much you should order: Order Huantity , &ma"imum Huantity( E&on hand Huantity( 2 &Huantity on order( F
!in ma" Planning %teps
-nter item planning attributes9 .efine subinventory level min ma" information &optional(9 Run the !in ma" report9
)tem Planning Attributes

)tem planning attributes include setting up general planning attributes for either the organiGation or the subinventory in which you want to use !in ma" planning9
!in ma" Planning %etup Procedure

%et up the appropriate profile value for reHuisition approval9 %elect an inventory planning method9
%pecify a planning level &either organiGation or subinventory(9
-nter the following: !in ma" minimum Huantity !in ma" ma"imum Huantity Fi"ed lot siGe multiplier !inimum order Huantity !a"imum order Huantity
%electing a Planning <evel

=ou can select !in ma" planning as the inventory planning method for each item9 )f you select the !in ma" planning method for an item, Oracle performs !in ma" planning for that item at both the organiGation and subinventory levels9 'o perform !in ma" planning at both the organiGation and the subinventory levels, you need to enter minimum and ma"imum Huantities for each level9
-ntering Planning Attributes

%elect an inventory planning method9 -nter min ma" minimum Huantity9
-nter min ma" ma"imum Huantity9
%pecify a fi"ed lot siGe multiplier9
%pecify a minimum order Huantity9
%pecify a ma"imum order Huantity9
%ubmitting the !in ma" Planning ReHuests
%et up item planning attributes
%ubmit concurrent process
#enerate !in ma" planning report
#uided .emonstration Overview: !in ma" Planning

)n this demonstration the instructor illustrates how to perform !in ma" Planning9
Practice Overview: !in ma" Planning

)n this practice you will learn how to perform !in ma" Planning9
Agenda
8ses of Replenishment *ounting
Duyer
)tem
%ubinventory
Replenishment Planning %teps
%pecify reHuisition approval status9
/
.efine subinventory9
.efine subinventory replenishment information9
-nter replenishment counts9
Lalidate and process replenishment counts9
;
*reate reHuisitions9
%ubinventories Bindow
=ou utiliGe the %ubinventories window to define subinventories for which you want to perform replenishment counts9
)tem %ubinventories Bindow

Access the )tem %ubinventories window to enter minimum and ma"imum Huantities for each item that you store in a subinventory9
!inimum @uantity
!a"imum @uantity
)tem %ubinventories: Order !odifier 'ab

)n the Order !odifier tabbed region of the )tem %ubinventories window, you specify the following information: Fi"ed lot siGe multiplier !inimum order Huantity !a"imum order Huantity
Replenishment *ount Keaders

=ou can enter counts to replenish subinventories9 Oracle )nventory replenishes subinventories according to the method that you use to enter counts9 Oracle )nventory does not store on hand Huantity information for non trac$ed subinventories9
On hand Huantity
%ubinventory
Replenishment *ount <ines
=ou can select one of three replenishment count types for each item:
On hand @uantity
Order !a"imum
Order @uantity
Processing Replenishment *ounts

'he replenishment processor performs the calculations that are necessary to verify whether Oracle )nventory should create reHuisitions9 =ou can either choose to process the replenishment counts or save your changes and run the replenishment processor later9
Practice Overview: Performing a Replenishment *ount 8sing Forms

)n this practice you will learn how to perform a replenishment count using forms9
Practice Overview: Performing a Replenishment *ount 8sing the !obile Application

)n this practice you will learn how to perform a replenishment count using the mobile application9
Processing PAR *ounts
OrganiGation
%ubinventory PAR count is locator level replenishment count
<ocator 1
<ocator /
<ocator 6
<ocator 4
Reorder @uantity For PAR *ount
PAR evel !"a#tity

100 25
Co"#t $ype
O#-ha#d !"a#tity
Reorder !"a#tity
%5
100
&ot applica'le Order PAR
100
100
25
Order !"a#tity 25
Agenda
+anban *ards
Part A +AIDAI Part D +AIDAI %horter lead times Reduced inventory
+anban Planned )tems
%et Release 'ime Fence )tem Attribute to +anban
+AIDAI .efine the Pull seHuence and generate new $anban cards
+anban *ards
%ubinventory +AIDAI )tem <ocator
+anban %upply %tatus
Iew Full +AIDAI Bait )n 'ransit -mpty )n Process
+anban Replenishment %ources
)nter Org )ntra Org +AIDAI Production %upplier Flow %chedules 8ser .efined
+anban *ard Printing
+AIDAI
#uided .emonstration Overview: #enerating +anban *ards
)n this demonstration the instructor illustrates how to generate +anban cards9
Practice Overview: #enerating +anban *ards
)n this practice you will learn how to generate +anban cards9
Agenda
Overview Forecasting Performing Reorder point Planning Performing !in ma" Planning Performing replenishment counting #enerating $anban cards %etting up Available to Promise &A'P( %etting up )nventory profile values )dentify )mplementation *onsiderations %ummary
Available to Promise
@uantity 1/ 10 M ; 4 / 'ime On hand Hty , 0 Iew supply , 1/ .emand , 1/ On hand Hty , 0 Iew supply , 10 .emand , 16 On hand Hty , 0 Iew supply ,M .emand , 4
Deginning of A'P period
-nd of A'P Period
A'P Rules and A'P *hec$s
%etting up items and bills for A'P chec$s includes the following: )tem A'P rule *hec$ A'P attribute A'P components attribute Dill component chec$ A'P attribute
8ses of A'P in Oracle )nventory

@uantity
'ime
A'P %upply
.ata
.emand
%teps for *hec$ing A'P

1 / 6 4 7 ;
.efine A'P rules9
%elect a default A'P rule for your organiGation9
Attach A'P rules to each item9 Attach A'P rules to bills of materials in Oracle Dills of !aterial9 8se the A'P )nformation window to perform A'P Hueries9 -nter sales orders in Oracle Order -ntry and reHuest automatic A'P chec$ing9
A'P Rules %etup %teps
19 .efine computation options9 /9 %pecify supply time fence9 69 %pecify end of A'P horiGon9 49 %pecify demand time fence9 79 %pecify demand sources9 ;9 %pecify supply sources9
.efining *omputation Options

Dac$ward *onsumption
%urplus in a prior period
%hortage in the current period
Forward *onsumption
%hortage in the current period
%urplus in a future period
.efining *omputation Options
Accumulate Available Bindow Accumulation options
%pecifying %upply and .emand 'ime Fences

Purchase
'ime Fence
,
'otal <ead 'ime
!anufacture
)nfinite %upply Option
-nd of A'P horiGon Options *umulative manufacturing lead time *umulative total lead time 'otal lead time 8ser defined time fence

.ay before the ne"t scheduled supply date %upply Period Ie"t scheduled supply date
%cheduled supply date
%pecifying .emand %ources

=ou can define demand sources for each A'P rule9 Only those demand sources that you enable are included in the A'P calculation9
.emand %ources
%pecifying %upply %ources

=ou can define supply sources for each A'P rule9 Only those supply sources that you enable are included in the A'P calculation9
%etting 8p )tem and Dills for A'P *hec$ing

-nable the item for A'P chec$ing
Assign A'P rule to the item
)s item, A'P3P'O only, a parent of an assembly?
Io
)s )tem a component of an A'O3P'O assembly?
=es
-nable components for A'P chec$ing 8pdate A'P chec$ing ability at the bill component level
=es
A'P *hec$ing
-nable *hec$ A'P Attribute
A'P 'est
-nter .emand
A'P *hec$ing
=ou can select the A'P *omponents only if you select one of the following attribute values for the item: Assemble to Order Pic$ *omponents Phantom B)P %upply 'ype
A'P *hec$ing
Oracle )nventory: A'P *omponents attribute
Oracle Dills of !aterial: *hec$ A'P attribute
Liewing A'P *riteria

Oracle )nventory calculates A'P Huantities based on the A'P rule that you select in the A'P *riteria window9
Agenda
Planning and Forecasting Profile Options

Pro3ile Optio# Re/5d 4pdate 2e3a"lt +al"e evels All All Pre-approved Co#c"rre#t Processi#g Co#ti#"e Processi#g *#co-plete
*&+) 0i#-a1 Reorder (es Approval $P) *&+ ,#ter (es Reple#ish-e#t Co"#t .or*&+) Reple#ish-e#t Co"#t i#e .ail"re *&+) Reple#ish-e#t Co"#t Re/"isitio# Approval (es (es
All All
%etting 8p the !in !a" %ystem Profile Lalue
)IL: !inma" Reorder Approval =-% or IO
%ubinventory %etup Bindows

=ou use the following windows to set up and process subinventories for which you want to enter replenishments counts: %ubinventories )tem %ubinventories Replenishment *ount Keaders Replenishment *ount <ines Process Replenishment *ounts Purge Replenishment *ounts
Agenda
!in !a" Order 'ype and Order %ource
)tems
!a$e
Duy
Replenishment !ethod %election

%upplier %ources
.emand %ources
.ocuments
Agenda
%ummary
=ou should now be able to do the following: Perform Forecasting Perform Reorder point planning Perform !in ma" planning Perform replenishment counting #enerate $anban cards %et up Available to Promise &A'P( Perform A'P chec$s %et up inventory planning profile options )dentify the )mplementation *onsiderations

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11i Replenishment Fundamentals

Copyright 2005, Oracle. All rights reserved.

Copyright 2005, Oracle. All rights reserved.

Copyright 2005, Oracle. All rights reserved.

Planning profile options

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Copyright 2005, Oracle. All rights reserved.

Copyright 2005, Oracle. All rights reserved.

Focus Forecasting &continued(

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Focus Forecasting &continued(

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8sing Focus Forecasting

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Focus Forecasting -"ample

Forecast =ear /000 /001

:anuary //0 />0

February /10 /77

!arch /70 /10

April /;0 ???

Copyright 2005, Oracle. All rights reserved.

Copyright 2005, Oracle. All rights reserved.

-"ponential %moothing Forecast &-%F(

, -%Ft1 2 5 & At 1 A -%Ft 1 ( , 5 At1 2 & 1 A ( 5 -%Ft1

Copyright 2005, Oracle. All rights reserved.

'rend -nhanced Forecast &'-F(

%eason -nhanced Forecast &%-F(

, 5 &At 3 Dt( 2 & 1 A ( 5 %t 1 , Dt 5 %t1

'rend and %eason -nhanced Forecast &'%-F(

TSEFt , & Dt 2 Rt( 5 St1 At-1 Dt Rt %t

, %moothing constant for the average &0 C ,

, %moothing constant for the trend &0 C ,

= Adjusted seasonal inde" for period t, one period ago

Forecast %etup and !aintenance

Copyright 2005, Oracle. All rights reserved.

#uided .emonstration Overview: *reating a !anual Forecast

)n this demonstration the instructor illustrates how to create a manual forecast9

Copyright 2005, Oracle. All rights reserved.

Practice Overview: *reating a !anual Forecast

)n this practice you will learn how to create a manual forecast9

Copyright 2005, Oracle. All rights reserved.

Copyright 2005, Oracle. All rights reserved.

8ses of Reorder point Planning

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Reorder point Planning: %afety %toc$

Reorder Point %afety %toc$ 'ime

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Reorder Point Planning: <ead 'ime

Reorder Point %afety %toc$

<ead time 'ime

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Reorder Point Planning: Reorder @uantity

Reorder Point %afety %toc$ 'ime

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Reorder Point Planning %teps

Forecast item demand9

.efine safety stoc$s9

Run Reorder point report9

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-ntering )tem Planning Attributes

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-ntering #eneral Planning Attributes for Reorder point Planning

-nter an order cost9