Least Cost Formulation

Here is the Setup: Define your organization. Assign the proper Organization Acesses. (Inventory Super User) From the Product Development Organization Parameters form, flag the entity as a plant and lab. (Product Development Security anager! Define your items. Assign them to the proper organizations. (Inventory Super User) Setup the "ey fle#field structure for the $%F %lass item category. (System Administrator Responsibility) %reate the values for the "ey fle#field segments for the $%F %lass. (System Administrator Responsibility) %reate the values for the "ey fle#field segments for the $%F Subclass. (System Administrator Responsibility) $in" the "ey fle#field to Oracle &nventory as %ategory %odes and %ategory Sets to be used as $%F %lass. (Inventory Super User) Associate the items to their respective item category at the master item level. (Inventory Super User) %reate the appropriate lab data. 'ou (ill need to define technical parameters, technical parameter se)uences and item technical data. (Formulator) Costing ata: o y least cost formulation lab is $%F, but & (ill use the same item cost data that is defined for P*+. &n order to accomplish this & need to define a cost type in OP Financials (, F!. o &n this e#ample, & need to go to the Product Development Parameters form for my $%F entity. & am using the same item cost data for my $%F items as in P*+. -o do this step, & need to tie the %osting Source Organization parameter for $%F to organization P*+. -his is located on the laboratory tab of the organization parameters form. o -he ne#t step is to define my items costs for my $%F items in P*+. (.e sure that your cost type is tied to a cost calendar and that the period is open. o *un a cost update.

Here is LCF: %reate your product specification. o Define a specification header. 'ou can choose to have a routing. o Define your re)uirements. -here are three re)uirements / -he material re)uirements let you enter a list of ingredients for the specification. &f the range type selected is Percentage, then minimum and ma#imum values displayed are percentages of the total product standard )uantity. &f the range type selected is 0uantity, then the minimum and ma#imum values displayed are )uantities in the 1O displayed. -he compositional re)uirements let you display and modify re)uirements for a group of ingredients on the formulation specification. -he group is called a category set. -he -echnical *e)uirements let you enter minimum and ma#imum technical parameters to be used in constraining the least cost formulation -his includes a minimum and ma#imum value to guide the least cost formulation.

After you define the product spec, you must approve it for general use, then you can formulate. 2hen you get to the Optimize3,enerate screen, you can go ahead and generate the data. -he $%F engine is no( generating your least cost formulation. At this point, you can go to the simulator. 'ou can no( use simulator functionality. From the simulator you can create an $%F batch or upload a formula. From the production supervisor, you can also determine the least cost validity rule. &n order to get least cost validity rule, there must costing data defined for the batch ingredients and derived cost technical parameter must be created for the batch organization. &f necessary, set the %osting Source Organization parameter. On the , 45side you need to flag the least cost validity rule bo# during batch creation. *efer to organization $%A.

%lic" O; to go the simulator.

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'ou can create your $%F formula or .atch

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