Oracle Planning
Transcript of Oracle Planning
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Oracle Planning
Explanation and Guide
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Agenda
Current MRP Blueprint Overview of Process
MRP Workbench
How On Time Delivery is Affected
Inventory Planning Options Filter Methods (timeframe)
Sub-inventory Replenishment Min-Max
Reorder Point Planning
Demonstrate MRP Planning
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MRP
MRP is what you do to get supply to meet demand
In Oracle it is limited to a single inventory organization
MRP can be setup to run overnight and provide updates based onthe previous days production and demand changes
Material requirements planning (MRP) calculates net requirementsfrom gross requirements by evaluating: the master schedule
bills of material scheduled receipts
on-hand inventory balances
lead times
order modifiers
It then plans replenishments by creating a set of recommendations
to release or reschedule orders for material based on net materialrequirements. These planned recommendations are stated in: discrete quantities, with due dates
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The MRP Process
Planning
Forecast
Sales Order
Demand
MDS/MPS
MRP
PurchaseRequisitions
Work Orders
BOM
Inventory
WIPPurchasing
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MRP Workbench
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Inventory Workbench
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Job Workbench
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How On Time Delivery is Affected
MRP Schedules Based on Order Deliver minus Lead
Times
MRP is very Sensitive to Data Accuracy
MRP Produces an Exceptions List on every MRP Run
MRP Helps Maintain a Consistent Production Schedule
but Un-forecasted Demand can Effect OTD
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Planning without MRP
Other Planning Options
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Other Planning Processes
Min/Max Planning
Reorder Point Planning Kanban Replenishment
Beyond MRP
Advanced Supply Chain Planning
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Min/Max Planning
With min-max planning, you specify minimum and
maximum inventory levels for your items. When the
inventory level for an item (on-hand quantities plus
quantities on order) drops below the minimum, Oracle
Inventory suggests a new purchase requisition, internal
requisition, move order, or job to bring the balance back
up to the maximum.
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Min/Max Planning
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Reorder Point Planning
Reorder point planning uses demand forecasts to decide when toorder a new quantity to avoid dipping into safety stock. Reorder point
planning suggests a new order for an item when the availablequantity-on-hand quantity plus planned receipts-drops below theitems safety stock level plus forecast demand for the item during itsreplenishment lead time. The suggested order quantity is aneconomic order quantity that minimizes the total cost of ordering andcarrying inventory.
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Reorder Point Planning
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Kanban Replenishment
Kanban is a means of supporting pull-based
replenishment in manufacturing systems. A Kanban
system is a self-regulating pull system that leads to
shorter lead times and reduced inventory. Kanban
systems are typically applied to items that have relatively
constant demand and medium-to-high production
volume. The system includes an API that can be called by
external systems, such as bar code readers, to trigger
replenishment signals.
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Kanban Replenishment
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Advanced Supply Chain Planning
Oracle Advanced Supply Chain Planning (ASCP) is a
comprehensive, Internet-based planning solution that
decides when and where supplies (for example,
inventory, purchase orders and work orders) should be
deployed within an extended supply chain.
ASCP works across many inventory organizations
ASCP can run on a separate server to allow for multiple
planning runs during day or evening
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INV ORG 1
INV ORG 2INV ORG 3
Demand
ASCP
MRP vs ASCP
MRP
INV ORG 1
INV ORG 2
MRP
MRP ASCP
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Questions