Inventory Management

and
Product Supply Chain
Handling Buy Increment in EBS
Sep 12, 2007
Version 1

© 2007 General Parts International, Inc.

 Design Issue
Implement Existing Business Process of ‘Buy
Increment’ in Oracle EBS

© 2007 General Parts International, Inc.

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 Existing Buy Increment Process Flow

Part Buyer Reviews,

Requested PO Validate PO Qty Place PO Qty =
Buy Increment ‘O’ Apply % of Buy Qty <80% Approves & Send
Qty with Buy Actual Qty
Flag ? Increment to Supplier
Increment Data

M Qty>=80%

Buy Increment Prepare PO with Buy Place PO Qty =

Part Data Increment Qty Buy Increment Qty

© 2007 General Parts International, Inc.

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 Buy Increment Part Example
EXISTING
MFG PARTNO FACT PK 'WHSE PK’ 'JBR PK’ 'BUY INCR’ 'BUY INCR
No FLAG’

ACC CR43TS EA EA 1 104 M

BAT 4 -30 EA EA 1 54 O

TO BE
MFG PARTNO ASL DC PRI UOM UOM CONV FIXED LOT 'BUY INCR
No FACTOR MULTIPLIER FLAG’

ACC CR43TS EA EA 1 104 M

BAT 4 -30 EA EA 1 54 O

© 2007 General Parts International, Inc.

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 Proposed “Buy Increment” Process Flow
Proposed Buy Increment Process Flow

Apply GPI
ASCP

Planned Order Qty

ASCP

Demand Inventory Run ASCP Recommended Business Logic for

updated with Buy
Planning Optimization Planning Planned Orders Buy Increment for
Increment Logic
Part Flag = ‘O’
PURCHASING
INVENTORY PURCHASING

If updated Qty is < Buyer Reviews the

Buyer Approves Buyer Checks Buy Req Converted Purchase
Buy Increment, PO Qty and
the PO with the Increment Details into PO and Buyer Requsision
Buyer gets a updates PO
Changed Qty and updates Qty gets a Notification created
warning Quantity
INVENTORY

Enter Buy
Enter Fixed Lot Enter Buy
Increment Flag
Multiplier Increment %
(M or O)

© 2007 General Parts International, Inc.

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 Proposed Planning Process Flow
 Buy Increment Planning Process
 Create Buy Increment Info.
 Planning Process
 Apply GPI Business Logic

© 2007 General Parts International, Inc.

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 Proposed GPI Logic in ASCP Planning
Create Buy Increment Details

Create Part Buy

Create Part Fixed Maintain
Increment Flag Part’s Buy Increment Info
Lot Multiplier Buy Increment %
(M or O)

Run Planning to Replenish DC

Planned Order
Demand Inventory Run ASCP Apply 80%
Forecast SSL Planned Orders =>80% with Buy
Planning Optimization Planning Logic
Increment Qty

Forecast
ASCP Planning Process and GPI Business Logic
<80%

If Flag’ = ‘O’ and Planned Qty >=80% of Buy Increment

Qty,Update New Qty = Buy Increment Qty.

If Flag’ = ‘O’ and Planned Qty < 80% of Buy Increment Planned Orders
with Actl Qty
Qty,Do Not Update Planned Qty.

© 2007 General Parts International, Inc.

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 Proposed Purchase Process Flow

 Manual Purchase Orders

 ASCP Sourced Purchase Orders - Manual Approval
 ASCP Sourced Purchase Orders - Auto Approval

© 2007 General Parts International, Inc.

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 Proposed Process Flow
Role: Buyer
Manual PO
Manually Created PO
GPI Buyer Warning Message “ The quantity
Increment Fail being created does not reflect
Line No Qty
Validation Buying Increment“
1 9

Submit for
Pass PO is Approved
Approval

Planned PO

PO is Created by ASCP
Buyer Manually Modify Qty
With valid Buy Increment GPI Buyer Warning Message “ The quantity
qty Auto Approval No Increment Fail being updated does not reflect
Line No Qty
Line No Qty Validation Buying Increment“
1 12
1 10

Submit for
Pass
Approval

Yes PO is Approved

© 2007 General Parts International, Inc.

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GPI Logic to update Planned Qty

© 2007 General Parts International, Inc.

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Manual PO Qty update and Warning Message

The Quantity Being Updated does not

Reflect ”Buying Increment” Value

© 2007 General Parts International, Inc.

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 Assumptions
 Replication of Existing GPI Process of ‘Buy Increment' in
Oracle.
 Buy Increment Flag and Percentage to be Sourced from
Neo-Progress
 Buy Increment Flag and Percentage to be Maintained in
Neo-Progress
 Buy Increment Flag and Percentage to be Maintained at
SKU-Location Level
 Buy Increment Percentage at MFG Code Level
 This Process is Applicable to PO and Blanket Releases
Only; Does not Apply to Requisitions

© 2007 General Parts International, Inc.

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 Open Issues
 Roles to Support these Processes to be
Determined
 The Impact on other Process to be Analyzed

© 2007 General Parts International, Inc.

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