128224154 Oracle Inventory PPT

Training On

Oracle Inventory

Oracle Applications 11i

Company Confidential

2

Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

Agenda


3

Introduction to Oracle

inventory management

What is Inventory?

Stocking ,tracking and maintaining the level of

different items like Raw material, Finished Goods, etc in

an organization.


4

Introduction to Oracle

inventory management

Oracle Inventory enables users to satisfy a company’s business needs, area such as:

Defining part numbers

Modeling organization structures

Tracking perpetual inventory

Maintaining accurate on-hand balances

Planning material replenishments

Forecasting anticipated demand


5

Inventory Integration with other modules

Oracle Purchasing

Oracle Inventory

External

Systems

Oracle WIP

Oracle Cost Management

Oracle Engineering Oracle Bills

of Material

Oracle Order Management Oracle Master

Scheduling/MRP

Oracle Flow Manufacturing

Oracle Shipping

Oracle Project

Manufacturing


6

Inventory Integration with finance modules

Oracle

Assets

Oracle

Receivables

Oracle

Payables

Oracle

General

Ledger

Oracle Inventory

External

Systems


7



8

Introduction to Oracle inventory

management

Item

Item

An item is a part or service that are purchased, sold,

planned, manufactured, stocked, distributed, or

prototyped .

Item Statuses and Attributes

Status attributes are item attributes that enable key

functionality for each item. An item status is defined by

selecting the value check boxes for the status attributes.

Both status attributes and item status can be controlled at

the item level or organization levels.


9


management

Unit of Measure

A unit of measure (UOM) is a term used along with a

numeric value, to specify the quantity of an item. For

example, “each” is a unit of measure that used to specify

the number of units of an item.

A unit of measure class is a group of units of measure with

similar characteristics. For example, “weight” can be a

unit of measure class with units of measure such as

kilogram, gram, pound, and ounce.

A unit of measure conversion is a mathematical

relationship between two different units of measure.


10


Base UOM

Yes

No

No

UOM

lbs

kg

g

1 kg = 2.208 X lbs

1 g = 0.002208 X lbs

UOM Class = Weight UOM Conversion

UOM Interclass Conversion

Conversion

2 Weight lbs

Item

Keyboard

Destination

Base UOM

Destination

UOM Class

Source

Base UOM

Source

UOM Class

Quantity Each

2 Each = 1 lb


11


management

Organization Calendar

workday calendar must be defined in Inventory if

the following are to be performed :

inventory forecasting ,reorder-point planning,

available-to-promise analysis or cycle counting.

Inventory automatically generates a workday

pattern (the base calendar) that includes all days,

including non-workdays, between the start and end

dates specified.

workday exceptions can be assigned to the base

calendar to denote holidays, schedule

maintenance, or overtime.


12


Categories and Category Sets

Categories are logical groupings of items that have similar characteristics.

A category set is a distinct category grouping scheme and consists of categories.


13


Finished Good

Subassembly

Hardware

Software

PC

Other

Category Grouping

Inventory

Category Set

Purchasing

Category Set

Craig Category

Set


14


Inventory Controls

With Oracle Inventory locator, revision, lot, and serial

number control can be implemented.

Any combination of the four controls (locator, revision,

lot, and serial number) can be implemented for each

item. Inventory controls are optional for all items.

User can choose to implement inventory controls for

specific items.


15



16



Transaction

A transaction is an item movement into, within, or out of

inventory. A transaction changes the quantity, location,

or cost of an item. Inventory supports a number of

predefined and user-defined transaction types.

Every material movement has a corresponding set of

accounting transactions that Oracle Inventory

automatically generates.

All transactions validate the various controls (revision,

locator, lot number, and serial number) enabled for

items.


17


Material Flow Business Flow

Receive Goods

Ship Goods

Move Goods

MRP Order Entry

Purchasing

Inventory

WIP


18



Inventory Setup


Inventory Controls



Inventory Planning

Agenda


19



The Oracle Applications organization models define

organizations and the relationships among them in

arbitrarily complex enterprises. This organization model

serves as the cornerstone for all of the Oracle Applications

products. It dictates how transactions flow through

different organizations and how those organizations

interact with each other.


20


LE LE

Set of Books

IO

OU OU

IO IO

OU

IO IO IO

BG Organization

Structure


21


Multi-org

Multi-Org is a key component that provides secure

access to the different organizations of the

enterprise supports multiple organizations of the

enterprise structure in a single database.

Operating Unit is the primary organization unit

through which user secures transaction data, but

also creates processes and reports on financial

applications data. An Operating Unit can be used to

model an autonomous business unit that performs

one or more business activities and creates

transactions with financial impact.


22


Business Group

This is an Organization that represents

the consolidated enterprise, a major division, or

an operation company and has no accounting

impact. The Business Group partitions Human

Resources information and the Purchasing

Approval Hierarchy. If you request a list of

employees (in any module) you will see only

those employees in the Business Group of which

your Operating Unit is a part. Multiple Legal

Entities can relate to a single Business Group.

OU

Set of Books

Legal Entity

Business Group

Inventory

Organization


23


Set of Books

Set of Books is the financial reporting

entity that secures financial entries and

account balances within the GL

application. SOB will be based on 3C’s

(Currency, Calendar, Chart of Accounts)

A Set of Books is the highest level that

impacts accounting. A Set of Books is

associated with a single Business Group,

but multiple Sets of Books may be

associated with a single Business Group

OU

Set of Books

Legal Entity

Business Group

Inventory

Organization


24


GRE/Legal Entity

The Legal Entity represents a legal

company for which the user prepares

fiscal or tax reports.

Legal Entities are associated with a Set

of Books. One or more Legal Entities

may be associated with a single Set of

Books, and multiple Legal Entities may

be associated with a single Business

Group.

OU

Set of Books

Legal Entity

Business Group

Inventory

Organization


25


Operating Unit

– An operating unit represents an organization that uses

any Oracle subledger application, for example, Order

Management, Payables. It may be a sales office, a

division, or a department. An operating unit is associated

with a legal entity. Information is secured by operating

unit for these applications. Each user sees information

only for their operating unit.

Inventory Organizations

– An inventory organization is a facility in your enterprise

where you store and transact your inventory items. The

items in an inventory organization can be in the form of

raw materials, semi-finished goods, or finished goods for

varying periods of time.

– Inventory Organizations belong to an Operating Unit.

OU

Set of Books

Legal Entity

Business Group

Inventory

Organization


26

Inventory Organization Structure


27


Inventory Organization Structure

Organization

Subinventories

Locators


28



Organizations

– An inventory organization is a facility in your enterprise where

you store and transact your inventory items. The items in an

inventory organization can be in the form of raw materials, semi-

finished goods, or finished goods for varying periods of time.

– A physical entity such as a manufacturing facility, warehouse,

distribution center, or a branch office.

– A logical entity such as an item master organization, which you can

use just to define items but no transactions. The item master

organization is discussed in detail in the lesson titled “Defining and

Maintaining Items Fundamentals.


29


– Subinventory

Subinventories are unique physical or logical separations of

material inventory, such as raw material inventory, finished

goods inventory, or defective goods inventory. In Oracle

Inventory, all material within an organization is held in a

subinventory. Therefore, you must define at least one

subinventory.

– Locator

You use locators to identify physical areas where you store

inventory items. Item quantities can be tracked by locator.

Items can also be restricted to specific locators


30

Review Question

What are the 3 C’s in Set of Books?

Currency

Calendar

Chart of Account


31



Inventory Setup


Inventory Controls



Inventory Planning

Agenda


32

Inventory Setup

Required Setup Steps

Step

1

2

3

4

5

6

7

Level *

Global

Global

Global

Global

Global

Global

Organization

Activity

Define Item Flexfield

Define Item Categories Flexfield

Define Item Catalog Group Flexfield

Define Stock Locators Flexfield

Define Account Aliases Flexfield

Define Sales Orders Flexfield

Define Organizations

* Defined Once Globally or for each organization


33

Inventory Setup



Step

8

9

10

11

12

13

14

Level *

Organization

Global

Global

Organization

Global

Either Level

Either Level

Activity

Organization access

Defining Intercompany Relations

Define Unit of Measure Classes

Define Subinventories

Define Item Attribute Controls

Define Categories

Define Category Sets


34

Inventory Setup



Step

15

16

17

18

19

Level *

Global

Global

Global

Global

Global

Activity

Define Default Category Sets

Define Statuses

Define Cost Types

Define Accounting Periods

Set Profile Options


35

Inventory Setup

Flexfield Definitions

Flexfield Name Table Name Comment

1 Account Aliases MTL_GENERIC_DISPOSITIONS It supports just one structure

2 Item Catalogs MTL_ITEM_CATALOG_GROUPS It supports only one structure

3 Item Categories MTL_CATEGORIES This should be defined before

defining items. There Can be

multiple structures per instance

4 Sales Orders MTL_SALES_ORDERS Defined as Order Number, Order

Type, and Order Source to make each

transaction unique. It’s defined

before placing demand /reservations

5 Stock Locators MTL_ITEM_LOCATIONS Used to capture more information

about stock locators and items

6 System Items

(Items Flexfield)

MTL_SYSTEM_ITEMS This should be configured before

defining items. OE: Item Flexfield

profile option should be set to

specify the Item Flexfield structure

that will be used for Oracle

applications.

* Refer System Administrator & AOL training for Flexfield set up


36

Inventory Setup

• Oracle Inventory users use the Personal Profile Values window to set profile values only at the user level.

• System administrators use the System Profile Values window to set profile values at the site, application, responsibility, and user levels.

• Required profiles have no default; they require input from a user or an administrator. Optional profiles have defaults which may be accepted or manually overridden.

Profile Options


37

Profile Option

INV: Allow Expense to Asset Transaction

INV: Default Item Status

INV: Default Primary Unit of Measure

INV: Dynamic Precision Option

INV: Inter-Organization Currency Conv

INV: Item Master Flexfield

INV: MinMax Reorder Approval

Default

Yes

Active

Each

-9,999,999.00

Corporate

No Default

Approved

Req‟d

No

No

No

No

No

Yes

No

These profiles are updateable at all levels:

Inventory Setup


38

Profile Option

INV: Proj Misc Trans Expenditure Type INV:

RC Line Failure

INV: Requisition Approval

INV: Save Search Items

INV: Updateable Customer Item

INV: Updateable Item Name

TP:INV: Cycle Count Approvals Form

Default

User Entered

Continue Processing

Approved

No

No

No

Concurrent Processing

Req‟d

No

No

No

No

No

No

No


Inventory Setup


39

Profile Option

TP:INV: Cycle Count Entries Form

TP:INV: Enter Replenishment Count Form

TP:INV: Inter-Organization Transfer Form

TP:INV: Misc Issue and Receipt Form

TP:INV: Transaction Processing Mode

TP:INV: Transfer Between SubInv Form

TP:INV: Update Average Cost Form

Default



Online Processing

Online Processing

Immediate Con-

current Processing

Online Processing

Online Processing

Req‟d

No

No

No

No

No

No

No


Inventory Setup


40

Profile Option

TP:INV: Server Side Online Processing

INV: CCEOI Commit Point

INV: Override Negative Qty for Backflush

INV: Order Transact Form

INV: Purchasing by Revision

INV: Debug Trace

INV: Debug File (Include complete path)

Default


No Default

No

Online Processing

Yes

No Default

No Default

Req‟d

No

Yes

No

No

No

Yes

Yes


Inventory Setup


41

Inventory Setup

Profile Option

INV: FIFO for Original Receipt Date

INV: Debug Level

INV: Detail Serial Numbers

Default

No

No Default

No

Req‟d

No

Yes

No



42

Profile Option

INV: Accounting Category Set

INV: Capable to Promise

INV: External ATP

INV: Use Catalog Name in Item Desc.

INV: Minimum Number of Quantity Trees

INV: CCEOI Workers

INV: Detect Truncation on UOM Conversn

Default

No Default

No Default

No Default

No

500

No Default

No Default

Req‟d

Yes

Yes

Yes

No

No

Yes

Yes

These profiles are updateable only at the Site level:

Inventory Setup


43

Inventory Setup

Organization Setup

Before using Oracle Inventory, one or more organizations

need to be defined. Organizations represent distinct

entities in a company and can include separate

manufacturing facilities, warehouses, distribution centers,

and branch offices.

Organizations can be classified and connected to model the

overall enterprise structure. The classifications include:

- Business Groups

- Legal Entities (LE) / Government Reporting Entities (GRE)

- Operating Units

- Inventory Organizations


44

Inventory Setup

Organization Setup

(N)> Inventory>Setup>Organizations>Locations

physical locations of Employees

and Organizations. Locations are

shared between Inventory,

Purchasing and Human

Resources. Each organization

can be associated with only one

location. One or more

organizations can be associated

with the same location

Flagged as global,

locations are

available to all

Business Groups


45

Inventory Setup

Organization Setup

(N)>setup>Organizations> Organizations

organization classification is used to

describe the general purpose of

organization. Examples are

Inventory Org, GRE / Legal Entity,

and HR Organization. Inventory

Organization classification is used

for inventory management.

Organization location field links a location to an

organization to a location. This is a must for

Legal Entity organizations


46

Inventory Setup

Organization Setup

(N)>setup>Organizations> Organizations

Link Between Organization &

Legal entity/Set of Books &

Operating Unit.


47

Inventory Setup

Using an Item Master Organization

Item Master Organization is usually the first Inventory

organization that is set up. Its single purpose is for entering

items. It has no subinventories and is not used for inventory

transactions. Items are entered in an item master

organization and then assigned to be used in child

organizations.

Child Organization is an inventory organization with at least

one subinventory that is set up for processing inventory

transactions. It is not used to enter items. It gets a list of

items from the master.


48

Inventory Setup


49

Inventory Setup

Organization Setup (N)>setup>Organizations> Parameters

This must be the first organization to be

defined as this is a required field in

parameters. Later it can be changed. There

can be any number of Item masters in an

instance but it is advised that there is only

one item master unless absolutely

necessary.

Item master can be common across

operating units, legal entity & SOB. It can

be optionally common across business

groups also. It is also advised that there

are no transactions carried in an item

master

For forecasting, planning,

available-to-promise analysis, or

cycle counting, workday calendar

must be defined. This calendar is

entered in the parameters screen in

order to be used by the above

functions. When defining a calendar

system assumes a workday pattern

that includes all days, between the

start and end dates unless

specified.


50

Inventory Setup

Organization Setup (N)>setup>Organizations> Parameters

Decides Whether the inventory

balance in the organization can

go below zero. If enabled ,does

allow the inventory to go below

zero.

Locator control option

determines at which level

the locator is controlled.

Options are None, Pre

specified, Dynamic &

Controlled at subinventory


51

Inventory Setup

Organization Setup

(N)>setup>Organizations> Parameters Costing organization determines which

is the costing organization for the

organization in question. However for

an average costing organization the

costing organization is the same

organization i.e. the costs cannot be

shared.

Determines the costing

method used in the

organization. Options are

Standard costing, Average

costing, FIFO & LIFO

Valuation accounts for the

organization. Once any

transaction takes place in

an organization ,these

accounts cannot be

changed in an Average

costing scenario.

Indicate whether all transactions are

posted in detail or summary to the

general ledger.


52

Inventory Setup

Organization Setup

(N)>setup>Organizations> Parameters

Enforces unique lot numbers across

items, if set. The options are Across

items & None

option for lot number generation.

It can be generated at item level,

org level or User defined

option for serial number uniqueness.

Options are Within organization, Within

inventory & items Across organizations

Can be generated at org

level or at item level


53

Inventory Setup

Organization Access

This setup controls access to

organizations based on the user

responsibility assigned to a user by

the system administrator. If

implemented for one user

responsibility, it is then required for

all other user responsibilities

accessing the same organization.


54

Inventory Setup

Organization Setup

Organization

Subinventory

Locator

Inventory Organizations are made up of one or more

subinventories which can be made up of one or more

locators


55

Inventory Setup

Subinventory set up

A subinventory is a physical or logical grouping of

inventory, such as raw material, finished goods, defective

material, or a freezer compartment.

The subinventory is the primary place where items are

physically stocked. A subinventory must be specified for

every inventory transaction

Subinventories can be further divided into areas

designated as locators.


56

Inventory Setup

Subinventory set up (N) INV> Setup>Organizations>Subinventories

Indicates whether to

include items in this

subinventory in ATP

calculations.

Indicates whether to maintain the

value of this subinventory on the

balance sheet

Indicates whether each

transaction for this

subinventory updates

the quantity on hand for

the subinventory

Indicates whether to

include this subinventory

while performing available

to reserve calculations.


57

Inventory Setup


Indicate whether the planning

process uses the on–hand

balance of these subinventory

items as available inventory

Can only be selected if

locator control is set as

Determined at subinventory

level in the Organization

Parameters window

indicates the priority with which items

are picked from this subinventory,

relative to another subinventory, where

a given item resides.


58

Inventory Setup


These valuation

accounts are used

in a standard

costing scenario.

For average

costing org, system

picks up the

accounts from org

level


59

Inventory Setup

Workday Calendar

Workday calendar can be defined both in Inventory and

Bills of Material.

It defines which days are “ON” within an organization and

which shifts are available to be worked. The workday

calendar is the Oracle term for a manufacturing calendar.

The workday calendar is separate from the Oracle General

Ledger calendar.

Each organization references a workday calendar.


60

Inventory Setup

(N) INV> Setup>Organizations>Calendar

Workday Calendar

workday calendar consists of a start date, and

end date, and on and off days that follow one

or more defined workday patterns. A workday

calendar can also include shift information and

exception dates, such as holidays/scheduled

down time. Workday exceptions identify

deviations to the workday calendar. Shift

exceptions identify deviations for a shift.

Attention: Shift exceptions take precedence

over workday exceptions. Note: Before using a calendar it must be

built using tools>build option


61

Inventory Setup

Units of Measure Units of measure (UOM) are defined for tracking/moving/storing

& counting items. Each item defined in Inventory must have a

primary UOM. Each transaction performed in Inventory must have

a UOM associated with the transaction quantity and a conversion

defined back to the primary UOM.

Multiple related UOMs are grouped together in a class with a

base unit of measure Inventory uses the base UOM to perform

conversions between units of measure in each class and between

two different unit of measure classes.


62

Define UOM classes

Define multiple non base

UOMs for each class

Define intraclass

conversions

Define interclass

conversions

Define one base UOM

for each UOM class

Inventory Setup

Perform the following steps to define multiple UOMs and

set up conversions:

Units of Measure


63

Inventory Setup

Units of Measure Classes (N) Inventory>Setup>Units of Measure>Classes


64

Inventory Setup

Units of Measure (UOM)

A unit of measure (UOM) is

a term used along with a

numeric value, to specify

the quantity of an item. For

example, “each” is a unit of

measure used to specify

the number of units of an

item.

(N) Inventory>Setup>Units of Measure>Units of Measure


65

Inventory Setup

Units of Measure Conversions

unit of measure conversion

is a mathematical

relationship between two

different units of measure.

For example, 10 Kilograms

= 1 Each, or 2.2 pounds = 1

kilogram.

If items are transacted in UOM belonging to classes other than their primary UOM class, conversions between the base units of measure in different UOM classes must be defined

(N) Inventory>Setup>Units of Measure>Conversions


66



Inventory Setup


Inventory Controls



Inventory Planning

Agenda


67


Setting up item Definition

Define

Items

Choose Item Attribute Control Levels

Define

Categories

and

Category

Sets

Create

Templates

Define

Statuses

3

Define

Catalogs

1

2

Define

Status

Control

Levels

Define

UOMs


68


Item Attributes

Item attributes are fields in the item table used to store specific characteristics of an item, such as item status, unit of measure, revision control, etc.. These can be controlled at either the master or the organization level.

Attributes Controlled at the Master Level

An item has the same value for such attributes in all organizations in which it is defined.

Master-level attributes can be only updated by using the Master Item window.

Inventory reflects your changes in all organizations that carry the item.


69


Item Attributes

Attributes Controlled at the Organization Level

An item may have different values for such attributes in each

organization in which it is defined.

When defining items in the item master, defaults for

organization-level attributes can be specified.

Values of organization-level attributes can be updated only

by using the Organization Item form in each organization that

carries the item.


70


Item Attributes (N) Inventory>Setup>Items >Attribute Controls

Control level can be

determined using this

field


71


Status Attributes

Each status attribute is dependent on at least one other attribute. For example Stockable attribute cannot be set to yes if Inventory Item attribute is set to No.

Defaults Value: Value of this attribute defaults when assigning the status to an item. Can be

changed.

Not Used: Use neither default nor status control.

Sets Value: Value of this attribute defaults when assigning the status to an item. Once

assigned the default cannot be changed.


72


Functional Area Functionality

Stockable

Purchasable

Transactable

Build in WIP

Inventory Allows to store the item in

an asset subinventory

Inventory, Order

Management,

Purchasing, WIP

Allows to transact the

item Inventory, OM, PO

and WIP

Purchasing Allows to place the

item on a purchase

order

Work in Process Allows to build the item

on a discrete job and/or a

repetitive schedule

Status Attribute

Status Attributes and Functionality


73


Internal Orders

Enabled

BOM Allowed

Customer Orders

Enabled

Invoice Enabled

Functional Area Functionality

Order Management

Inventory, Order

Management,

Purchasing

Bills of Material

Receivables Allows to create an

invoice for the item

Allows to create a bill

of material for the item

Allows to create an

internal sales order for

the item

Allows to place the

item on a sales order

Status Attribute

Status Attributes and Functionality


74


Item Status

When defining an item, status must be given by using the Item

Status attribute. The Item Status attribute has a user defined set

of yes/no values for the status attributes. The values are applied

to the status attributes when an item status code is chosen when

defining an item.

For example, in the beginning of a product development cycle

Item Status attribute is set to Prototype with all of the status

attributes defaulted to yes except for Customer Orders Enabled.

When the item is ready the Item Status attribute is set to Active to

allow all functions for the item.


75


Item Status (N) Inventory>Setup>Items>Status Codes


76


Item Attributes

Status Control

An unlimited number of status codes can be defined by the

user.

One or more of these status codes can be assigned to an Item

for implementation on a future date. The status codes then

automatically change on their user specified effectivity dates.


77


Item Templates

Templates are defined sets of attributes that can be used

over and over to create many similar items. Templates make

initial item definition easier and more consistent.

Templates can be applied at any time after the item is

created. Multiple templates can be applied to a single item.

Templates can hold a complete set of attributes or a partial

set. If a partial set, then only values stored in the template

overwrite those on the item


78


Item Templates

Users can define their own templates or predefined templates

include:

ATO Model ATO Item Kit

PTO Model Phantom Item Purchased

Subassembly Freight ATO Option Class

Finished Good Outside Processing Item PTO Option Class

Planning Item Reference Item Supply Item

Product Family


79


Item Templates (N) Inventory>Setup>Items>Templates


80


Item Categories A category is a logical classification of items that have similar characteristics.

A category set is a distinct grouping scheme and consists of multiple

categories.

Some application modules, Inventory , for example require that all items are

assigned to a category. The user specifies a default category for this purpose

in each of these modules. Categories and category sets are used to group

items for various reports and programs.


81


Item Categories - Setup

Define the Flexfield structures for the item categories Flexfield.

Define categories.

Define category sets and assign the categories to the sets. Each set can

use a different Flexfield definition if required.

Assign default category sets to each functional area, like Purchasing,

Planning and Inventory

Assign items to categories. An item can be assigned to only one category

within a set.


82


Item Categories - Define Categories

(N) Inventory>Setup>items>Categories>Category Codes


83


Item Categories - Define Category sets

(N) Inventory>Setup>items>Categories>Category sets

Category is assigned to category set

from here.

This option should only be

enabled for user defined

category sets. Functional

category sets cannot have

same item with multiple

categories within itself.


84


Item Categories - Assign items to Categories

(N) Inventory>Setup>items>Categories>Category sets>Assign


85


Defining Items

With the Master Item window, items and the attributes

associated with them (such as description, unit of measure or

lot control) can be defined and updated.

Much of the information for an item is optional. Only the

information needed to maintain the item are defined.

An item cannot be defined at the Organizational level.

Oracle will automatically switch to the Master Item window

when defining a new item.


86


Defining Items

An item is a part or service that is purchased, sold, planned,

manufactured, stocked, distributed, or prototyped. The

following Modules use items:

Items

Lead Time

Attributes

Inventory

Attributes

Invoicing

Attributes

MRP/MPS

Attributes

Costing

Attributes

Bills of Material

Attributes

Order Management

Attributes

Purchasing

Attributes

Planning

Attributes

Work in Process

Attributes

Receiving

Attributes

Service

Attributes


87


Copy items

Enter attribute values

Enable in child organizations

Update organization level attributes

Define item costs

Copy templates

1

Steps to Setup, Define and Maintain items


88


Master Item vs. Organizational Item

Whether an item attribute is defined/maintained at the Master

level or the Organization level can be designated.

Attributes at the Master level are the same across all

organizations that the item is assigned to.

If an attribute is maintained at the Organization level, it can have

different values in each organization the item is assigned.

Some attributes can be maintained at only the Master level or the

Organizational Level. Unit of Measure should be maintained at the

Master level. Min-Max should be maintained at the organizational

level if multiple organizations are used.


89


Organization Assignment and Organization Item

Item can be enabled in all child organizations under master

organization or child organizations where the item to be used is

chosen. Inventory propagates item to all organizations in which

the item is to be defined.

Organizational attributes for item attributes which are enabled in

that organization, can be entered or changed which are enabled in

that organization. For example, go to an organization to choose

reorder point planning for an item, and then go to another

organization and choose Min-Max planning for the same item.


90


Defining Items

(N) Inventory>Items>Master Items


91


Defining Items

Organization Assignment


92


Defining Item Relationships

The following types of relationships can be defined for items:

Item cross-references

Substitute items

Related items

Manufacturer part numbers

Customer item numbers

Relationships between items can be defined to improve

purchasing management and item searching capabilities.

Substitute items can be received in Oracle Purchasing.


93


Defining Item Relationships

(N) Inventory>Items>Item Relationships


94


Cross–reference types

Cross–reference types define relationships between items

and entities such as old item numbers or supplier item

numbers. For example, a cross–reference type Old can be

created to track the old item numbers , and a cross-reference

type Supplier to track supplier part numbers.

multiple cross-reference types can be assigned to a single

item.


95


Cross–reference types

(N) Inventory>Items>Cross References


96


Customer Items

(N) Inventory>Items>Customer Items>Customer Items

Allows the entry of

customer part

numbers and the

customer(s) they are

associated with.

These items can

also be associated

with commodity

codes and container

types


97


Customer Item Cross References

(N) Inventory>Items>Customer Items>Customer Items

Used to define

cross references

between

inventory items

and the customer

items defined

above.


98



Inventory Setup


Inventory Controls



Inventory Planning

Agenda


99

Inventory Controls

With Inventory locator, revision, lot and serial

number control can be implemented

Flexibility:

- Inventory controls are optional for all items.

- any combination of the four controls

(locator, revision, lot and serial number) for

each item can be implemented.

Overview


100

Inventory Controls

Locators are optional structures within subinventories.

Locators are the third level in the enterprise structuring

scheme of Oracle Inventory .

Locators may represent rows, aisles, or bins in warehouses.

Items can be received directly into and shipped items directly

from locators.

Locator setup


101

Inventory Controls

(N) INV> Setup>Organizations>Subinventories

Locator setup

Indicates the priority for

picking items from this

locator relative to another

locator.

Subinventory to which

the locator belongs


102

Inventory Controls

A revision is a particular version of an item, bill of material,

or routing.

By using the „Revision control‟ option while defining items

item quantities can be tracked by item revision. To do so a

revision is a must for each material transaction.

Revision control is enabled for items for which version

changes or changes that are significant enough to track but

are not affecting the function and feature of the item are

tracked .

Revision Control item attribute cannot be changed when

an item has quantity on hand.

Revision Control


103

Inventory Controls

When defining Revision numbers letters, numbers and

characters such as A, A1, 2B, etc can be used.

Letters are always in upper case and numbers may include

decimals.

To ensure that revisions sort properly, decimals should

always be followed by a number.

Revisions are sorted according to ASCII rules.

Each revision must be greater than the previous revision.

For example, revision 10 cannot be used after revision 9

because, according to ASCII sorting, 10 precedes 9.

Revision Control


104

Inventory Controls

Inventory provides complete lot number support for

inventory transactions.

A lot identifies a specific batch of an item that is

received and stored in an organization.

Lot control is a technique for enforcing the use of lot

numbers during material transactions, thus enabling the

tracking of batches of items throughout their movement

in and out of inventory.

If Lot Control is turned on for an item, the lot number

must be indicated to perform a transaction.

Lot Control


105

Inventory Controls

Lot Control must be turned on at the item level.

lot numbers must be assigned whenever items under

lot control are received into inventory.

An inventory receipt can be split in to several lots, as

necessary.

Quantities can be added to existing lot numbers.

Inventory will generate default lot numbers by using the

default lot number generation method which is

configured in the Organization Parameters window

during setup.

Lot Control


106

Inventory Controls

Lot can have an

expiration date by

assigning a number of

lot control shelf life days

or by entering a lot

expiration date.

The expiration date

controls the availability

of the lot for transacting

and planning purposes.

Lot Control


107

Inventory Controls

An Expired Lot:

is not considered as on-hand supply when performing

min-max, reorder point or MRP planning calculations.

cannot be reserved for a date beyond the expiration date.

can be transacted and is included in on-hand quantities.

is included in all inquiries and reports.

is included in a cycle count and count entry and

adjustments are allowed.

is included in a physical inventory and tag entry and

adjustments are allowed.

Lot Control


108

Inventory Controls

Disabled Lots:

Disabling a lot only prevents it

from appearing in a list of values

when performing receipt

transactions.

Lot Control


109

Inventory Controls

A Disabled Lot:

is included in available to transact, available to promise and

available to reserve calculations.

is included as on-hand supply when performing min-max,

reorder point or MRP planning calculations.

is included as on-hand in all inquiries and reports, including

inventory valuation reports.

can be transacted with Inventory functions and the

Transaction Open Interface.

can be reserved.

Lot Control


110

Inventory Controls

A serial number is an alphanumeric piece of information

assigned to an individual unit of an item. A serialized unit is a

combination of an item number and a serial number.

Individual units of items can be tracked by using serial

numbers. Serial number control is a system technique for

enforcing the use of serial numbers during a material

transaction. Serial numbers can be used to track items over

which a very tight control is to be maintained.

One serial number per unit of an item can be assigned

Serial Control


111

Inventory Controls

Generating Serial Numbers

Depending on how Serial Number Control is set at the Master

Item level will determine how serial numbers are generated.

If No Control is specified as the serial number control type, no

serial number control will be enforced.

If Predefined is specified as the serial number control type,

serial numbers for that item must be predefined.

If control At inventory receipt or At sales order issue, optionally

serial numbers for the item can be predefined.

Serial Control


112

Inventory Controls

Generating Serial Numbers

Inventory uses the starting

serial number prefix and the

starting serial number

specified in the Item screen .

The process of generating

serial numbers is done

through a concurrent report.

This does not assign numbers

to units in inventory, it simply

reserves serial numbers for an

item, for later use.

Serial Control


113



Inventory Setup


Inventory Controls



Inventory Planning

Agenda


114


Understanding of Transaction Types

Overview of Inventory Transactions

Miscellaneous Transactions

Subinventory Transfer

Inter Organization Transfer

Receipts

Move Orders

Overview


115

A transaction type is the combination of a transaction

source type and a transaction action. It is used to

classify a particular transaction for reporting and

querying purposes.

Transaction

Source Type

Transaction

Type

Transaction

Action



116

System Defined Transaction Types

System defined transaction

type codes for different

inventory transactions. Each

transaction type is linked to

source type and action



117

Use user defined terminology to

define transaction type. The

transaction type can be only

linked to pre seeded values of

source type and action

User Defined Transaction Types



118

Types of Inventory Transactions

Miscellaneous Transactions- This transaction is used to do

adjustments in stock due to damage, obsolescence, issuing

items for R & D or issuing track able expense items.

Subinventory Transfer- This transaction is used to transfer

goods from one stockroom to another with in the same inventory

organization.

Inter ORG Transfers- This transaction is used to transfer goods

from one inventory organization to another.



119

Types of Inventory Transactions Receiving Transactions- This transaction is used to move

goods from receiving dock to specified subinventory and

locator.

Sales Issue- This transaction is used to move goods from

pick subinventory to staged subinventory.

WIP Issue- This transaction is used to issue materials

against production orders.



120

Miscellaneous

Receipt

Miscellaneous

Issue

Organization

Subinventory

Transfer

Subinventory

Locator

Locator


Subinventory

Locator

Locator

Organization

Direct Interorganization Transfer

Interorganization Transfer by Way

of Intransit



121

Select the

transaction type

Account for

passing

adjustment

transactions

If you want to enter

transaction line by

serial number for

serialized item

check this box

Miscellaneous Transactions



122

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, departments, or projects

Receiving items that were acquired by assorted

means (without purchase orders)

Entering adjustments and corrections to system

quantities due to theft, vandalism, loss, shelf-life

expiration, or inaccurate record keeping



123

Enter the

quantity to

be adjusted

Lot or serial number

can be entered if item

is a serial controlled or

Lot Controlled

Miscellaneous Transactions - Transaction Lines



124

Use the Subinventory transfer window to:

Transfer material within your current organization

between subinventories, or between two locators

within the same subinventory

Subinventory transfer



125

The type can be Subinventory

transfer to transfer from one

subinventory to another or any

of the user defined transaction

type for source inventory &

action subinventory transfer




126

Subinventory Transfer Transaction Lines

Enter source

subinventory Enter

destination

subinventory Enter

Quantity

Saving the record will complete the transaction.



127

• We can perform inter–organization transfers as direct or

in transit shipments. Goods that have departed from the dispatch, loading, or shipping point but have not yet arrived at the receipt, offloading, or

delivery point. Also called in transit inventory or stock in transit. We can transfer one or more items in a single

transaction. We can also transfer partial quantities of the

same item to different subinventories and locators in a

single transaction.

• We can also transfer expense and asset items from one

organization to another using in transit inventory

Inter Org Transfer


http://www.businessdictionary.com/definition/goods.html

http://www.businessdictionary.com/definition/dispatch.html

http://www.investorwords.com/2857/loading.html

http://www.businessdictionary.com/definition/shipping.html

http://www.businessdictionary.com/definition/receipt.html

http://www.businessdictionary.com/definition/offloading.html

http://www.businessdictionary.com/definition/delivery-point.html

http://www.businessdictionary.com/definition/in-transit.html

http://www.businessdictionary.com/definition/inventory.html

http://www.businessdictionary.com/definition/partly-paid-shares-stock.html


128

Pune

Organization

Mumbai

Organization

Delhi

Organization

Pune

Organization

Use Intransit

Inventory

(FOB = Receiving)

Austin

Organization

Require

Internal Order

to Ship

Use Intransit

Inventory

(FOB = Shipping)

Direct

Transfer

You need to define shipping network before doing inter

organization transfer

Inter Org Transfer



129

Direct Inter–organization Transfers

We can use a direct inter–organization transfer

to move inventory directly from a shipping

organization to a destination organization.

The validity of a transfer transaction depends on

the controls we have defined in both the shipping

and destination organizations for the items we

want to transfer.

Inter Org Transfer



130

Inter–Organization Transfers via Intransit Inventory

We usually transfer material to intransit inventory

when transportation time is significant. When we

perform the transfer transaction, we do not need

to specify the delivery location. We only need to

enter the subinventory we are shipping from, a

shipment number, the freight information, and,

depending on the inter–organization transfer

charge that applies between the organizations, a

percentage of the transaction value or a discrete

amount that Oracle Inventory uses to compute

transfer charges.

Inter Org Transfer



131

Inter Org Transfer Shipping Network

Select Transfer

type as Intransit or

Direct

Enter FOB as receipt or

shipment to identify who

owns the inventory after

shipment has been made

Check this box if

internal order is

required



132

There are three options for transfer

charge.

Predefined % of transaction value. The %

is maintained here. The other two options

are requested % or requested value. In

this case value is mentioned at the time of

entering Inter ORG transaction




133

Enter the accounts for

transfer credit and PPV if

destination organization uses

standard cost

On these form maintain

Inter ORG receivable

and payable account




134

Enter Source &

Destination

Organization Select type as

Intransit or Direct

shipment

Enter the order number

Inter Org Transfer - In transit



135

Subinventory in

the shipping

organization

Subinventory in

the receiving

organization



136

As transaction type in Inter

ORG order was in transit

shipment, the inventory is

shown in transit after shipping

Note: Receiving for Inter ORG orders will be covered as a part of receiving transactions



137

Type of Receipt Transactions

Receive both internally and externally sourced shipments

Process unordered receipts

Receive substitute items

Inspect items for quality control and invoice matching

needs

Correct transaction errors

Receive returned items into invento

Return delivered items to receiving

Note: As part of inventory training only standard receiving

transaction will be covered with receipt routing as Direct

Delivery

Receipts



138

Use the Find

Expected Receipts

window to:

Find source

documents for which

you can enter

receipts.

Use the Supplier and

Internal tabbed region

to search for

Purchasing

documents.

Receipts



139

Use the Receipt Header window to enter header information

for all types of receipts.

Enter packing slip

number

Enter other information like shipped date, number of containers etc.

Receipts



140

Use the Receipts window to enter receipt line information.

Enter the receipt

quantity

Default

subinventory

from PO. It can

be overridden

As routing is

direct receipt,

the inventory is

delivered on

saving the

transaction

Receipts



141

Overview Of Move Orders

•Move orders are requests for the movement of

material within a single organization.

• Manage all material requisition and request

processes within an organization by manually or

automatically creating, approving, and transacting a

move order.

• Used for movement of material within a warehouse

or facility for purposes like replenishment, material

storage relocations, and quality handling.

Move Orders



142

Move Order

Requisition

• Account

Transfer

• Subinventory

Transfer

• Manually Generated

• Optional Approval

Processing

Replenishment

Move Orders

• Kanban

• Min Max

• Replenishment

• Count

• Automatically

Generated

• Pre-approved

• Ready for

Transaction

Move Order Type Transaction Type Generation & Approval

Pick Wave

Move Orders

Sales Order Pick

Internal Order

Pick

• Pre approved

• Print Pick Slip

Move Orders



143

Move Order Process Flow

Picking

Source

location

Destination

location

Put away

Pick

Ticket

Move order locates material sources

In case of shortage move order

can be re-planned

Move order

requisition

created

Approve move order



144

Move Order Header

Default source

subinventory for

move order

Select

Transaction

Type



145

Move Order Lines

Enter Item and

for transfer

Default transaction

type from header. It

can be overridden Quantity to be

transferred



146

Move Order Allocation

Press Allocate to generate

reservation from source

subinventory to destination

subinventory

After allocation reservation

can be viewed and updated

manually if required.



147

Transact Move Orders

Print Pick List for

Picker

Press Transact to move the

inventory from source to

destination subinventory



148



Inventory Setup


Inventory Controls



Inventory Planning

Agenda


149


Cycle Counting

Cycle counting is the periodic counting of individual items

throughout the year. Count items of higher value more

frequently than items of lower value. The differences between

the system quantity and counted quantity are adjusted to

correct the system quantity and inventory value in the system.

Physical inventory

A physical inventory is a periodic reconciliation of system on-

hand balances with physical counts in inventory. It is normally

done once in a year as a part of financial auditing requirement

to verify inventory assets on balance sheet. Production is

stopped at the time of carrying out this activity.


150

Define cycle count header

Update cycle-count items

Schedule items to count

Generate count requests

Enter cycle counts

Approve cycle counts

ABC Classification of items Cycle Counting



151

ABC Analysis

•ABC analysis is a method of determining the relative

value of items in your inventory sites.

• An ABC analysis involves ranking your items according

to a criterion and then grouping items into classes.

ABC Classification



152

Define ABC group

Assign items to ABC classes

Update class assignments

Purge ABC information

Define ABC compilation Define ABC classes

ABC Analysis

ABC Classification



153

ABC Compilation

Criterion for categorizing

your items in

Organization. It can be

based on current value or

historical usage value

Cost type to pick

up the unit cost

of items in

compile set

Press Compile

to generate

compile results

ABC Classification



154

ABC Compilation- Descending Value Report

ABC Classification



155

Use ABC classes to identify the value groupings to which

items belong.

Define these classes using own terminology. For example,

you might define classes High value, Medium value, Low

value.

Assign items of highest rank to the High class, those of lower

rank to the Medium class and those of lowest rank to the Low

class.

Can use ABC classes to group items for a cycle count where

you count “A” items more frequently than “B” items.

ABC Classification



156

ABC Classes

Define class

names for your

ABC Classification

purpose

ABC Classification



157

Define ABC Assignment Group

Define Group name to

link compile class and

set of ABC Classes

defined

ABC Classification



158

Link ABC Classes to

ABC assignment

group

Give a priority to all

classes. The class

with lowest priority is

assumed to have the

highest rank.

Define ABC Assignment Group

ABC Classification



159

ABC Item Assignments

Choose the sequence

value from ABC

descending value

report to assign a range

of items to class

Shows % of total items

and % of total value

assigned to a specific

class with in an

Organization

ABC Classification



160

Updating Item Assignments

ABC assignments generated

automatically by assigning cut

off sequence numbers for each

class. If required classes can

be changed manually

ABC Classification



161

Maintain Cycle Count

Adjustment account to

store variance amount

by which inventory is

adjusted

If automatic recount

required for out of

tolerance items

If items not scheduled

for counting to be

included

Cycle Counting



162

Maintain Cycle Count

Cycle counting to be

allowed for serialized

items or not. If

allowed will there be

multiple serial

numbers per request

or one serial number

per request

What Details to be

printed. Quantity

only or quantity

with serial

numbers

Scheduling

daily or weekly

or by periods

Cycle Counting



163

Maintain Cycle Count Header

Tolerances set by

quantity, value and

hot/miss analysis

ABC group

lined for

identifying item

classes

Use this option as

re-initialization to

upload items for the

first time from ABC

group. Make it to

update to add new

items added in ABC

group to cycle count

items

Cycle Counting



164

Cycle Count Classes

Mentions the

numbers of times

the item to be

counted in a year

Cycle count class

specific tolerances

can be maintained

here. If it is not

maintained here it is

taken from cycle

count header

Cycle Counting



165

Cycle Count Items

Cycle count classes and item

generated from ABC initialization

at the time of linking cycle count

to ABC group

Item specific quantity

tolerance can be

maintained here

Cycle Counting



166

Schedule Cycle Count

Automatic Scheduling

Oracle inventory uses the number of items in each cycle

count class, the frequency of each class, and the workday

calendar of your organization to determine how many and

which items you need to count during the scheduling

frequency.

Manual Scheduling

You can manually schedule counts in addition to or instead

of those generated with automatic scheduling.

Cycle Counting



167

Generate Cycle Count Request

Cycle count Scheduler for

automatic scheduling

Generate Cycle count

request to generate

cycle count entries

Cycle Counting



168

Cycle Counting List Report

Print this report to show items

scheduled for cycle counting in a

specific period. This report is given

to people who physically count

items

Cycle Counting



169

Cycle Count Entries

Enter the quantity

counted at the locator

in the warehouse

Cycle Counting



170

Approve Cycle Count

Approve cycle count entries that

are out of tolerance. The entries

with variance with in tolerance

will be approved by system.

Cycle Counting



171

Cycle Count Entries and Adjustments Report: This report shows all cycle count entries for a specified time period. It analyzes the

number of cycle count transactions you make against an item, and the number of units

you actually adjust. The report also calculates the value, in your functional currency, of

the adjustments to inventory.

Cycle Counting



172


Define physical inventory

Take snapshot of on-hand quantities

Generate tags

Count items

Enter counts

Void tags

Approve counts

Run adjustment program

Purge physical inventory

Physical Inventory


173


Define Physical Inventory

Set the option

for approval of

physical

inventory tags

Tolerances for Quantity and

value Click snapshot to

generate the snapshot

of inventory on hand for

count subinventories

Use this option when

tags are generated

outside oracle inventory

Physical Inventory


174


Generate Tags

You can generate

blank tags for stock

points not recorded in

your system

Generates a unique tag for

each unique combination of

item, sub inventory, locator,

revision, lot, serial number

Starting tag number and in

what order you want to

increment to generate the next

tag number

Physical Inventory


175


Physical Inventory Tags Counts

Enter the quantity physically

counted at specific location with

in the warehouse

You can void a tag if

damaged or lost. If

default tag is void it

sets the inventory to

zero for that SKU

Physical Inventory


176


Approve Counts

Approval option- Always the system requires approval of all

counts entered. You must approve or reject each adjustment

before running the physical adjustments program. After the

system adjusts all the approved counts the status of the

adjustment changes to „Posted

Approval option If Out of Tolerance the system requires approval

of all adjustments exceeding the tolerances entered in the

physical inventory definition. You must accept or reject each of

these adjustments before running the physical inventory

adjustments program. After the system adjusts all the approved

counts the status of the adjustment changes to „Posted‟.

Physical Inventory


177


Approve Counts

Approve or reject

the count

Physical Inventory


178


Perform Physical Inventory Adjustments

The system performs adjustments by creating a material

transaction for the +/- quantity of the adjustment.

Once adjustment program is run the system does not allow a

new tag generation or any further updates to the tag counts.

You must approve or reject all adjustments or the system will

not run the adjustments program.

Tag quantities, adjustment quantities, and adjustment values

can be reported before performing the adjustments.

You can use the adjustment report to authorize approvals or

request recounts of items with large pending adjustments.

Physical Inventory


179


Perform Physical Inventory Adjustments

Account for passing

transactions due to

variance in system and

counted quantity

Physical Inventory


180


Purge Physical Inventory Purging tags only: You can purge

all tags associated with a physical

inventory definition. If irreversible

mistakes are made in the count-

entry phase, you can start over

without refreezing your inventory.

Purging All Information You can

purge the physical inventory

definition, frozen quantities, tags

and count quantities. This purge

deletes adjustments but not the

adjustment material transactions.

Physical Inventory


181

Inventory Planning

Performing reorder-point planning

Performing Min-Max planning

Subinventory replenishment planning

Creating and executing Kanban cards

Planning methods:


182

Min-max planning is a method of determining when and how

much to order based on user-defined minimum and maximum

inventory levels. In Oracle Inventory you can perform min-max

planning at two levels:

Organization: To perform organization-level min-max planning

for an item, you must specify organization-level minimum and

maximum quantities.

Subinventory: To perform subinventory-level min-max planning

for an item, you must specify subinventory-level minimum and

maximum quantities.

Inventory Planning

MIN MAX Planning


183

1.0 Define Planning

attributes for Min-Max

planned items at Org

level

Min-Max Planning at Org

or Subinv entory lev el?

2.0 Run Min-Max

Planning Report at

Org level

3.0 Define Planning

attributes for Min-

Max planned items

at SubInv level

4.0 Run Min-Max

Planning Report at

SubInv level

A

Auto

Replenish-

ment?

Min-Max report

Org

No

Item Av ailable quantity

below Min quantity ?A Stop

Yes

No

Yes

Make or Buy ?

Source ?

Buy

7.0 Create

Unreleased Job

Make

5.0 Create

Purchase

Requisitions

SupplierInternal

Supplier

6.0 Create

Internal

Requisitions

6.1 Create

Internal

Requisitions

Inventory Planning

MIN MAX Planning


184

Inventory Planning

Enter minimum quantity

Enter maximum quantity

Enter fixed lot increments

Enter minimum order quantity

Enter maximum order quantity Run min-max report

Yes

No

Do you want

specific lot

increments?

Determine minimum

and maximum

quantities

MIN MAX Planning


185

Inventory Planning

The following equation represents when you should order:

Quantity Available= Min QTY- on hand quantity + quantity on

order

If Quantity Available is>0, the order should be placed

Order quantity = (maximum quantity) - [(on-hand quantity) +

(quantity on order) ]

You can constrain the order quantity by specifying the

following order modifiers for an item:

Fixed lot multiplier

Minimum order quantity

Maximum order quantity


186

Inventory Planning

Enter item planning

attributes.

Define subinventory-

level min-max

information (optional).

Run the Min-max

report.

MIN MAX Planning


187

Enter the following:

• Min-max minimum quantity

• Min-max maximum quantity

• Fixed-lot-size multiplier

• Minimum order quantity

• Maximum order quantity

Specify a planning level

(either Organization or

Subinventory).

Set up the appropriate

profile value for

requisition approval.

Select an Inventory

Planning method.

Inventory Planning

MIN MAX Planning


188

Inventory Planning

Enter the

minimum and

maximum

quantity Enter the planning

method as Min

Max Planning

Enter the source type as

supplier if you want to

generate purchase

requisitions. Enter

subinventory or organization

if you want to generate move

orders

MIN MAX Planning


189

Inventory Planning

Min Max Report

Planning level can be

organization or

subinventory. If it is

subinventory the min

max quantity should

have been maintained

at subinventory level

Demand cut off

date for demand

calculation

MIN MAX Planning


190

Inventory Planning

What are the different

sources of supply to be

considered for calculation of

quantity available

The program includes

nettable subinventory

as supply. In order to

include non nettable

subinventory make it

yes

If you don‟t want to

generate orders keep the

option as No. it will print

report for all those items

where quantity available is

less than Min Quantity

MIN MAX Planning


191

Oracle Inventory Processes

Oracle Purchasing Processes

Run Order Import Oracle Order Entry Processes

Min-Max

Planning

Reorder-Point

Planning

Subinventory

Replenishment

Populate Requisition

Interface

Run Req. Import

Create Purchase

Requisition

Create Purchase

Order

Create Internal

Requisition

Create Internal

Order

Kanban

Inventory Planning


192

Inventory Planning

Reorder-point planning is a method of determining

the size and timing of item replenishment orders.

Reorder-point planning uses the following pieces of

information:

Safety stock

Replenishment lead time

item demand

Order cost

Carrying cost

Reorder-point planning


193

Quantity

Time

Reorder Point

Safety Stock

Inventory Planning



194

Inventory Planning

You can perform-reorder point planning for the

entire organization.

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.

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.



195

Inventory Planning

Enter item planning

attributes.

Define safety stocks.

Forecast Item Demand

Run Reorder-point

report.

Reorder Point Planning Steps

Forecast item demand



196

Inventory Planning

Item Planning Attributes

Specify a maximum-

order quantity.

Enter a carrying cost

percent.

Select Reorder-point

as the inventory

planning method.

Enter an order cost. Specify a fixed-lot

size multiplier.

Specify a minimum-

order quantity.



197

Inventory Planning

Enter Lead Times

Enter processing lead

time.

Enter preprocessing

lead time.

Enter postprocessing

lead time.



198

Inventory Planning

Item Planning Attributes

Set your planning

method

Set your lead

times on the

lead time tab

Safety Stock

method



199

Inventory Planning

You can select one of the following three safety stock calculation

methods for each item:

User-defined quantity

You can enter safety stock quantities and the date for which each

quantity is effective. You can update safety stock quantities that

you previously entered or that Oracle Inventory calculated for you.

User-defined percentage

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

Reorder-point planning -Entering Safety Stock


200

Inventory Planning

You can select one of the following three safety stock calculation

methods for each item:

Mean absolute deviation

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

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.

Reorder-point planning -Entering Safety Stock


201

Inventory Planning

Entering Safety Stock- User Defined

User defined

safety stock

Enter a default item if

multiple entries are to

be maintained for the

same item



202

Inventory Planning

Entering Safety Stock

Method as MAD or safety

stock %

If method is safety stock %

enter safety stock %. F method

is MAD enter service level

Enter the forecast for

MAD calculation



203

Inventory Planning


Choose a item that

had a planning

method as reorder

point

Define a forecast set for your

forecasting scenario. With in your

forecast set define your forecast

name



204

Inventory Planning


Enter your forecast

bucket. It can be daily,

week or periods

Enter the forecast quantity



205

Inventory Planning

Reorder Point Program

Give your demand supply

and supply cut off date. Till

this date your forecast will be

taken for reorder point

calculation

Enter the forecast

set to be used for

EOQ and reorder

point calculation

Use this option as no if

you don‟t want to

generate requisitions

and want to generate

report for items will

quantity less than

reorder point



206

Inventory Planning

Reorder Point Program

Mention what supply should

be considered as availability

for reorder point calculation



207

128224154 Oracle Inventory PPT

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