Oracle Release 11i Training Oracle Inventory

http://oracleapps88.blogspot.
com/
Raju Ch
Oracle Release 11i Training

ORACLE INVENTORY
http://oracleapps88.blogspot.com/
Raju Ch
Course Objectives
Review the new features of the R11i product
Describe the business value of using the new
features
Demonstrate the key features
Discuss the implementation considerations
Explain how the new features work within the
product family
Supplement the R11i new features with handson review quizzes, labs and exercises.
Course Overview
Module Overview
Inventory Structure
Item Setup and Items
Item Classification
Inventory Controls
Inventory Transactions
Inventory Transactions R11i New Features
Inventory Planning and Replenishment
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Course Overview (Contd.)
ABC Analysis
Cycle Counting and Physical Inventory
Workday Calendar
Unit Of Measure
Available To Promise (ATP)
Forecasting
Review Exercises
Summary
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INVENTORY STRUCTURE
Objectives
Enterprise Structure
Inventory Organization and Parameters
Subinventories
Locators
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Human Resources View
Business Group
Legal Entity
Operating Unit
Work areas for:
Inventory/warehousing
Costing
Manufacturing etc.
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Accounting View
Set of Books
Legal Entity
Operating Unit
Work areas for:
Inventory/warehousing
Costing
Manufacturing etc.
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Business transactions affected by:
Set of Books
Costing Methods
Item Costs
Workday Calendars
Movement Between Inventory Sites
Planning Method
Forecasting
Accuracy Analysis
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Inventory Organization
Inventory Organization is the first level of
stratification of inventory items
An Inventory Organization is an inventory
location defined by its set of books, item
and costing
Following Oracle Modules are controlled at the
Inventory Organization level:
Inventory, BOM/ENG, Costing, WIP, MS/MRP
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Following are controlled at Operating
Unit Level
Purchasing, Order Entry, AR, AP
Master organization
Child organizations
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Defining Enterprise Structure

Define Location
Define Business Group
Or use default
Define
Define
Define
Define
Set of Books
Legal Entities
Operating Units
Inventory Organizations
Define organization parameters
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Organization Parameters
Organization Code
Definition of a Master Organization
Costing Parameters
Locator Control
Serial Control
Lot Control
Revision Control
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Source Information for Replenishments

Workday Calendar
Exception Set
Demand Class
Perform Reverse Encumbrance
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Inventory Asset Account Parameters
Inter-organization Transactions & Account
Parameters
Receiving Accounts Parameters
Profit and Loss Account Parameters
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Key Flexfields
Facilitate defining of codes using meaningful
segments to codify GL accounts, part
numbers, and other
business entities
Called as key flexfields
Flexible mechanism to define coding scheme without
programming
Defined using the define key flexfields form
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Sub-Inventory
Logical or physical subdivision of an inventory
organization
Raw inventory, finished goods, or defective material.
All material held in sub-inventories
At least one sub-inventory must be defined
Defined using the define sub-inventory form
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Sub-Inventory
Sub-inventories can be:
Asset sub -inventories

Expense sub -inventories
Quantity tracked
Non quantity tracked
Can allow/disallow reservations of Items
Can allow/disallow netting of the quantity held in the
sub -inventory
Used in calculation of ATP
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Sub-Inventory
Sub-inventories can be used to:
Restrict certain items to specific sub--inventories by:
associating items with specific subinventories using item/ sub-inventory form
setting item attributes for restricting
sub-inventories
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Sub-Inventory
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Locators
Further optional subdivisions of a subinventory
Row, Rack, Bin
Defined using the locator key flex field
Ability to restrict certain items to specific locators
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Locators
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ITEM SETUP AND ITEMS
Objectives
What is an Item?
Item Types
Item Attributes
Status Attributes
Attribute Controls
Master Organization
Creating Items
Item Templates
Item Relationship
Cross Reference
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Item
An Item is:
Any unique manufactured or purchased part,
service, material, intermediate, subassembly,
or product
Item Data
Shared data in Oracle Manufacturing & Oracle
Financials
Purchasing, Order Entry, Cost Management,
Bill of Material, Engineering, MRP / MPS,
Work in Process, Receivable , Payable,
Fixed Assets, Sales & Marketing,
Quality, Service etc.
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Types of Items
Seeded Item Types
Standard Component Item

Purchased Item
Internally Ordered Item
Service Items
Finished Goods
Planning Items
Subassembly
ATO Model
ATO Item
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Types of Items
Seeded Item Types
Kit
PTO Item
Outside Processing Item
Consignment Items
Phantom Item
PTO Model
Option Class
Option Item
Reference Item
Supply Item
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Item Type
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Item Attributes
An Attribute is a property of item controlling
the behavior of an Item in various functional
areas and business processes
Set during item definition
Oracle Inventory uses around 160 Mandatory and
optional attributes for defining items
Attributes can be module dependent i.e. can be set
only if the concerned Oracle Product is installed
For example :Item can be sold by setting attribute
Customer Order Enabled to yes only when OE is
installed
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Item Attributes
Item attributes grouped into groups
Main
Inventory
Bill of Material
Costing
Purchasing
Receiving
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Item Attributes
Item attributes grouped into groups (contd.)
General Planning
MS/MRP Planning
Lead Times
WIP
Order Entry
Service
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Item Status Attributes

Item Attributes that enable an item to be visible in
key
Oracle modules and enable key functionality for that
item
Eight status attributes

Mandatory if the item is to be used in the
module
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Stockable
Allows to store the Item in an asset
sub-inventory
Transactable
Allows to transact the item in Oracle Inventory, Oracle
Order Entry, Oracle Purchasing and Oracle Work in
Process
Purchasable
Allows to place the item on a purchase order
BOM Allowed
Allows to create a bill of material for the item
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Build in WIP
Allows to build the item on a discrete job,
and/or repetitive schedule
Customer Orders Enabled

Allows to place the item on a sales order
Internal Orders Enabled

Allows to place the item on an internal sales order
Invoice Enabled
Allows to create an invoice for the item
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Attribute Dependencies
Certain attributes depend on each other. For example:
Stockable must be no
if Inventory item attribute is no
Transactable must be no
if Stockable attribute is no
Purchasable must be no
if Purchased item is no
Build in WIP must be no
if Inventory item is no
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Attribute Dependencies
Certain attributes depend on each other. For example:
Customer order enabled must be no

if Customer ordered item is no
Internal orders enabled must be no
if Internal ordered Item attribute is no
BOM allowed must be no
if Inventory item attribute is no
Invoice enabled must be no
if Invoice item attribute is no
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Attribute Controls
Two types of Controls for Item attributes
Status Control
Only for control of item status attributes
Attribute Control Level

Can be used for almost all item attributes
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Item Status Control Attribute

Used to set the group of 8 status attributes by
defining status codes and using status codes
to update the status attributes
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For example, a status code of Active
could specify
Stockable
Transactable
Purchasable
Build in WIP
Customer ordered
Internal orderable
BOM allowed
Invoice enabled
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
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A Status of Obsolete could specify
Stockable
Transactable
Purchasable
Build in WIP
Customer order
Internal order
BOM allowed
Invoice enabled
Yes
No
No
No
No
No
No
Yes

When a user changes the status of an
item from active to inactive, inventory will
immediately update the 8 attributes as per
their status control settings
Status control settings
Not used
Defaults Value
Sets Value
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Define Item Status
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Attributes define functionality of an item in
various organizations
Different item functionality may be required in
different organizations
Example:
An item may be a sales item in a distribution
center but it would be an assembly in the
manufacturing organization
Its primary unit of measure could be same in all
organizations
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Attribute control allows user to standardize
the level at which each attribute is controlled
Master level
Used for attributes that typically have the same value for
an item in all inventory organizations
Organization level
Used for attributes having different values in different
organizations
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Attribute control form applies to all inventory
organizations in the Installation
Attribute Control Level Applies to all Items using
the specific attribute
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Item Master Organization

Like any other inventory organization;
Can be used for all purposes for which an inventory
organization can be used
Desirable to use it only for defining Items
Multiple Item master organizations can be defined
but each inventory organization can have only one
master or it is defined as its own master
Used to specify Attribute Control Levels
Each Item can have different attribute settings for
different organizations in which it is defined
Copying of Items from an item master organization

to another master organization is not allowed directly
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Defining Master Items

Done using the Define Master Item Form
Inventory automatically locates the correct master
organization of your current inventory organization
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Defining Master Items
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Defining Organization Items

Used to specify item attributes in inventory
organization where the item is going to be
used
Done using the organization assignment
feature in the special menu of the define
master item form
Enable the item in the desired organizations by
checking the boxes
The specific attributes for each organization are set
by selecting the organization and using organization
attributes
Only those attributes that are controlled at
Organization level are updatable
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Organization Assignment
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Item Templates
Used to define attribute settings for generic
item types
Oracle provides pre-defined item templates
Can be updated or modified
Custom / new templates can be defined
Items can be defined by:

Providing the template reference while defining items
Using previous item definitions as templates for new
items
Multiple templates can be applied in succession to
the
same item
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Item Templates
Custom item templates defined using define
item template form
Custom templates specific to an inventory
organization can be defined
Template defined for an organization can only be
used in that organization
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Item Template
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Item Cross-Reference
Item Cross-Reference
Item Cross-Reference allows cross referencing of
Inventory item codes to other codification schemes
such as
Old and new item codes
User names and item code relationships
Used mainly for reporting purposes
Item Cross-References are defined in the Define

Cross-Referenced Type form
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Item Relationships
Used to improve purchasing management and
item searching capabilities
Types of Item Relationships
Item Cross-References
Substitute Items
Related Items
Manufacturer Part Number
Customer Items
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Item Relationships
Used to define whether items are substitutes
of each other or if there is some non-specific
relationship between them
Allows usage of substitute relationships in
purchasing to order and receive Item substitutes
Non-specific relationships used mainly for reporting
purposes
Can be reciprocal
Defined using the Item Relationships form
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Used to link item definitions in inventory to the
corresponding Manufacturers Part Numbers for
use in reports and forms
Defined using the define Manufacturer Part

Number form by Manufacturer or by Item
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LAB 1
Inventory Setup
How do you set up multiple sites under one

Oracle Inventory Organization, when you want
to track inventory for shipments between
these sites?
How many child organizations can be
associated with a master organization?
What is an item attribute? Give an example.
What is an item attribute group?
Two inventory organizations have different
UOM. At what level would you set the Primary
UOM attribute?
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LAB 1
Inventory Setup (contd.)
Create an item template XX_PUR_TEMPLATE for

purchased items.
Create a Purchased item XX_PUR_ITEM1 in
using above template.
Enable above item to 2 child organizations.
Create one more item XX_PUR_ITEM2 using
item XX_PUR_ITEM1.
Define substitute relationship for above items.
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ITEM CLASSIFICATION
Objectives
Item Classification & Cataloging

Item Categories
Category Sets
Usage of Categories
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Item Catalogs
Catalog is a group of items that share common
characteristics.
Catalogs descriptive elements can be used as
search criteria for items.
An item catalog group can have any number of
descriptive elements.
When an item is assigned to catalog group,
descriptive elements values can be set.
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Assign Item to Item Catalog Group
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Item Categories
Used to group items for querying, reporting,
accounting, assigning responsibility purposes
Accomplished by defining category sets
and categories
A Category is a logical classification of items that
have similar characteristics
A category set is a logical grouping of categories
Category set is a flex field structure

Can have multiple segments
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Item Categories
Each item should belong to at least one
category set
Each item can belong to many categories
Each category can have many items
A category set can have many categories
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Item Categories
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Assign Item to Categories
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Item Categories
Used in various Oracle Modules to:
Specify a group or groups of Items for submission of
various programs, reports, screens and queries
Assign default overhead rates to specific category of
Items
Summarize demand history and generate forecasts
for a group of Items
Perform min-max planning and reorder point
planning for a range of Item categories
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Item Categories
Used in various Oracle Modules to:
Calculate lead times for Items within a category
Schedule orders and update price lists for Items in a
category
Group purchase orders by Item category
Receive Items that belong to a particular category
Schedule sales order lines by Item category
Prorate discounts across Item categories
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Category Flex-field
Implementation of Category and Category Sets
Key Flexfields is a mandatory step
Different category set structures can be
designed to fulfill unique grouping requirement
For
For
For
For
Warehouse
Purchasing
Accountants
Order Entry
Each Category Set can have a different Flexfield

Structure to satisfy unique needs
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Default Category Set

Used to specify the default category set for
each of following functional areas
Inventory
Purchasing
Order Entry
Engineering
Cost Management
Service
Planning
Used for automatically defaulting categories for

the item in these modules
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Default Category Set
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LAB 2
Item Classification
Define two categories.

Define a category set and include above
categories. Make one of them default for the
set.
How many categories can you assign to an
item?
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INVENTORY CONTROLS
Objectives
Understand and implement Inventory controls
Describe Lot and Serial Number Control on item
Understand stock locator control
List different types of controls in Oracle Inventory
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Item Controls in Oracle Inventory
Inventory Controls
Lot
Control
Serial Number
Control
Locator
Control
Revision
Control
Lot Control
Used for tracking a specific batch of items

identified by a number
Method referred to as Lot control
Applies to a batch of items you might receive,
manufacture, or ship to a customer
Lot number in inventory can be manually
entered or generated automatically
Used in
Inventory , OE, WIP
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Lot Control
Uniqueness
Unique lot number for items across all inventory
organization
No uniqueness requirement
Numbering scheme
Combination of prefix and a number
Generated at item level or

Inventory organization level or
Can be user entered
Cosmetic features available
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Item Setups for Lot Control

Used during transactions
Lot Control for a specific item
No Control
Full control
Define Shelf Life Control

No shelf life control
Shelf life days
User defined shelf life
Lot based picking rules
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Serial Number Control

Used for tracking each unit of an item and
its disposition
Provides the tightest control on items
Assigns a unique serial number to individual units
of an item
Tracks its inventory movement very closely
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Uniqueness
Unique serial number for items across all inventory
organizations
Unique serial number for items within an inventory
organization
Unique serial number for items within inventory items
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Numbering scheme
Combination of prefix and a number
Generated at item level or
At inventory organization level
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Item Setups for Serial Control

Used during transactions
No serial control for item

Use pre defined serial numbers
Dynamic entry at inventory receipt
Dynamic entry at sales order issue
Uses the prefix and starting number to

generate serial numbers
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Locator Control
Used for numbering physical locations /
addresses in a sub-inventory
Often to restrict item transactions to or from specific
locations
Implemented by:
Defining stock locator flexfield structure

Defining locators (Predefined / dynamically)
Associating sub inventories and locators
Associating items to sub-inventory / locator
combinations
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Locator Control
Uniqueness
Locators (based on segment combination) are always
unique in an inventory organization and can be setup
for uniqueness across organizations
Locator control level

Entire Inventory organization can be under locator
control
Only specific sub-inventories can be under locator
control
Only specific items in a sub-inventory may be under
locator control
No locator control
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Locator Control
Items can be restricted to specific subinventory / locator combinations for
transactions by:
Setting up locator control for items to be restricted in
item attributes
Specifying restrict sub -inventories and restrict
locators in item attributes for those items concerned
inventory organization attributes
Defining sub-inventory and locators in those subinventories
Associating items with sub-inventory / locator
combinations using the item/sub-inventory form
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How To Implement Locator Control

Define Stock Locator Flexfield
Choose Locator Control Option AT:
1. Organization Level
2. Sub-inventory Level
3. Item Level
Define Sub-inventories
Define Locators
Enter Locator Information
when Performing Transactions
Inventory Controls
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LAB 3
Inventory Controls
Define an item that is under locator control.

Define two locators for any subinventory.
Define an item that is under lot control.
Define another item that is under lot and self
life control.
Create a miscellaneous receipt for three units
of each of the two items that you just defined.
Define an item that is under predefined serial
number control.
Predefine 5 serial numbers for above item.
Create miscellaneous receipt to receive 3 units
of the this item.
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INVENTORY TRANSACTIONS
OBJECTIVES
Definition Inventory Transaction
Transaction Setup
Transaction Types and Source Types

Transaction Actions
Transaction Managers
Inventory Accounting Periods
Identify different transactions
Receiving Transactions
Sub-Inventory Transfers
Inter-Org Transfers
Miscellaneous transactions
WIP Material Transactions
Shipment Transactions
RMA
Transaction Inquiries
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An inventory transaction is:
Any business event/process that results in changes to
either quantity or value of items
Used to control the flow of material in the
organization
A transaction could be:

The receipt of returned material from a vendor or
sub-inventory or organization
The inspection and issue of material
The movement of material from one physical/logical
source of inventory to another inventory or to and
from the shop floor
Cost update
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A transaction could be:
A transfer of material between warehouses, between
manufacturing facilities, or between stockrooms
A shipment of finished goods to the customer
The impact of transactions can be verified,

viewed, or tracked through different screens
and reports in Oracle Inventory such as:
Material transactions, transaction distribution screen

On hand quantity, storage location of item
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Change in Physical/Logical
location of material
When do
transactions
occur?
Change in quantity
of item(s)
Change in accounted
value of item(s)
Generation of Accounting
Transaction to support
the Parent Transaction
Transaction Types
Oracle inventory supports a large number of
standard (36) transaction types to satisfy
various business needs for inventory control
Transaction types can be customized or new
transaction types created
Transaction type defined using
Transaction source type
Transaction action
Transaction types form
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Transaction Source Types

Indicates the entity originating the transaction
Oracle provides system defined transaction sources
which can be customized
User can create user defined transaction sources
Using the transaction source type form
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Pre-defined transaction sources:

Purchase Order
Sales Order
Account
Job or Schedule
Account Alias
Internal Requisition
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Pre-defined transaction sources:
Internal Order
Cycle Count
Physical Inventory
Standard Cost Update
RMA (Return Material Authorization)
Inventory
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Transaction Actions
Specifies the result of the transaction action
Oracle provides pre-defined transaction
actions
Only names can be customized but not the effect of
the action
Pre-defined actions
Issue from stores

Sub-inventory transfer
Direct organization transfer
Cycle count adjustment
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Transaction Actions
Pre-defined actions:
Physical inventory adjustment

Intransit receipt
Intransit shipment
Cost update
Receipt into stores
Delivery adjustments
WIP scrap transaction
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Transaction Actions
Pre-defined actions:
Assembly completion
Assembly return
Negative component issue
Negative component return
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Transaction Types Screen
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The transaction managers execute the
following processes:
Material transaction
Demand reservation
Move transaction
Resource cost transaction
Material cost transaction
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Inventory Accounting Periods
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Inventory transactions fall in following broad
categories:
Sub-inventory Transactions
Move Orders
Inter-organization Transfers
Miscellaneous Transactions
Return Material Transactions
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Used primarily for receiving against supplier
purchase orders
Materials received into an inventory location
Transaction type used is Receive into Stores

Increases the on hand quantity in sub-inventory and
locator Oracle also increases the appropriate
inventory values
Generates material distributions as specified in the
PO Distributions
Reduces the open PO quantity
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Used primarily to transfer material between
Two sub-inventories or
Two locators of a sub-inventory of an inventory
organization
Allowed transactions controlled by

Settings of sub-inventory
Asset / expense
Item type settings

Asset / expense
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Inter-Organization Transfers
Used to move material between two inventory
organizations within an operating unit
Requires defining shipping networks between them
Types :
Direct transfer
In transit transfer
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Direct Transfer - issuing and receiving
transactions performed simultaneously
Immediately reflected in the system quantities
In-transit Transfer - a two-step process

First, the material is issued out of the shipping
organization and into in-transit inventory
On arrival at the destination,a normal receiving
transaction is performed to destination
Shipment information can be kept up to date while in
transit
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Used widely for replenishment of Inventories
Min-max or reorder point planning creates internal
requisitions
Fulfilled by requesting an inter-organization transfer
Requires Purchasing, Order Entry in addition to Inventory
for internal order processing
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Miscellaneous Transfers
Miscellaneous transfers are used to perform
any miscellaneous issues out or receipts into
inventory
To perform receipts other than against a PO to a
vendor
Creates distributions directly to the sub-inventory and
other specified account numbers or account aliases
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Are used to perform shop floor related tasks like:
Pushing components to jobs / schedules from inventory
issue components for a complete job, individually or by
department or based on specific routing operation
Forms for executing these transactions are found in

WIP
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Used to fulfill customer orders
Through the Ship Confirm
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Return Material Authorizations

Return Material Authorization
Used for authorizing return of products sold to
customers
Entered in Order Entry
Customer return received in Inventory
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Receiving
Transaction
Shipment
Transaction
WIP Material
Transaction
Inventory
Transactions
InterOrganization
Transfer
Miscellaneous
Transfers
Return Material
Transaction
Sub-inventory
Transfers
Transaction Inquiries
View
View
View
View
Material Transaction
Transaction Summaries
Pending Transactions
Material Transaction Distributions
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Transaction Inquiries (Material

Transactions)
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Common Features
Control and Validation
Revision control validation

Sub-inventory restriction validation
Stock locator control and locator restriction validation
Lot control validation
Serial number control validation
Item status validation
Transaction date open period validation
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Common Features
Screen Supports:
Multi-line orientation
Multiple units of measure with item primary UOM
default
Item description display
Descriptive flex fields
Transaction reason codes
Transaction reference
Negative inventory parameter validation
Quantities displayed in UOM
Dynamic on-hand quantity and available quantity
display
Available quantity = on-hand quantity - reservations
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LAB - 4
Define a transaction type

XX_RECV_TRANS_TYPE to receive items. If
needed create a new source type also.
Perform a transaction with above transaction
type.
Transfer item XX_ITEM from a subinventory
XX_SUB1 to XX_SUB2 (within same
organization).
Perform an inter-org transfer to an
organization that require intransit inventory.
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INVENTORY TRANSACTIONS
R11i New Features
OBJECTIVES
Move Orders
Material Shortages
Serial Genealogy
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Move orders
Move orders
Used for moving stock within an inventory
organization as a better managed material flow
Traditionally done using Miscellaneous transactions,
account transfers or sub inventory transfers
Previously a one step activity providing no visibility,
planner intervention or documentation
Defined as separate transaction types and there fore

can be transacted through the Material transaction
open interface
Result in either an account issue or sub inventory
transfer
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Move orders
Move orders
Faster and managed inventory movement
User can request a move order which gets sent to a
picker for actual execution
Replenishment mechanisms can auto trigger move
orders
Integrated to Picking
Move orders utilize the same mechanism of pick slips
and inventory visibility as a sales order
APIs
APIs allow move orders to be transacted through
mobile devices
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Move orders Types
Move order types made available in 11i

Move order requisition
Manually created
The request can be for subinventory transfer or
account transfer
The requisition can go through a workflow approval
process before it becomes a move order (optional)
Two or three step process
Create move order
Detail move order
Transact move order
Print move order pick slip before or after transacting

Sub inventories affected only after Transacting
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Move orders Types
Move order requisition (Contd.)

Ability to transact through mobile devices
Using the open transaction interface API
Approval handled through workflow

Indicated by setting the approval time out period in
organization parameters window along with time out
action
Planner can be notified if one is associated with the
item
Individuals in the notification list attached to source
and destination sub inventories can be notified of
planner approvals
Notifications accessed through the viewer
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Move orders Types

Replenishment move order
Can be automatically created by Kanban replenishment,
Min Max, or replenishment count process
Pre approved with a transaction type of sub inventory
transfer
A sub inventory type replenishment source needs to

be specified at the kanban pull sequence level for
kanban planned items
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Move orders Types

Replenishment move order (Contd.)
A sub inventory type replenishment source needs to
be specified at any of the following levels for
replenishments using min max planning /
replenishment counts
Master/Org item level
Sub inventory level
Item/Sub inventory level
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Move orders Types

Pick wave move order
To be made available with release of order management
Used for staging material to a staging location (set up as a
subinventory) from source location after Pick release
process
Effectively a sub inventory transfer
Is Pre approved
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Move orders Process

Move order creation
Manually create a Requisition move order
Other move orders generated automatically
pick release
kanban replenishment
min max
replenishment count report
Header
Stores the move order source type , default source and
destination , requested date
Line
Stores item , requested quantity , source , destination , any
specific serial or lot information
Line Detail
Auto Filled during detailing or entered manually
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Move Order
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Move orders Process

Move Orders detailing
Creation of line details suggesting inventory
transactions needed to fulfill the move order
Occurs by clicking the Location details button
Uses picking rules set up at organization or item
level to suggest source locators
Destination details have to be specified at the time
of request entry, otherwise uses item subinventory
locator default
Line details are considered as pending transactions
and the quantity taken away from the availability
picture
Desist from detailing a move order line till ready to
transact
Move orders Process

Move Orders Approval
Uses Workflow
Item Planner receives notification for approval
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Move orders Setups

Set up steps for move order
Set up organization level time outs (length of time
the move orders are allowed to sit in pending
approval status) and default approval actions
After one timeout reminder sent to approver
After two timeouts , preset time out action performed
If time out period is 0 , order is auto approved
Define planners
Associate planner with items.
If no planner then move order auto approved
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Move orders Setups

Set up steps for move order
Create notification lists
email is sent to the ECO approval list attached to the
move order source and destination subinventory
Attach notification lists to sub inventories

Set up inventory picking rules
Use standard Oracle Inventory picking rules
Set up item-sub inventory locator defaults

If the item is locator controlled then the location to be
specified at the time of move order request
Set up min max planning

Set item sourcing to sub inventory
Set up kanban planning
Move Order Setup - Organization

Parameters
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Move Order Setup - Create

Notification List
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Material shortages
Purpose
To inform receiving personnel about potential cross
docking opportunities for incoming material to
alleviate shortages else where by
Enabling shortage monitoring for items
Receiving real time messages at receiving time of items
that may be in short supply using
Alerts or
Workflow notifications
Viewing potential shortages

Viewing actual shortages
No automation of cross docking
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Material shortages
Enabling shortage monitoring for items
Set up shortage parameters
Enable item for shortage messages
Enable the desired transaction types for shortage
notifications
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Material shortages
Set up shortage parameters
Enable checking of shortages at organization level
Set up separate controls for two major sources of
demand
Work in process shortages
Order entry shortages
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Shortage Parameters
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Material shortages
For work in process shortages specify jobs /
schedules to consider
Status and over due days

Component due date basis
Specify component exclusions
Specify planner and/or buyer for receiving
notification
For order entry shortages specify planner and

/ or order creator for receiving notifications
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Material shortages
Enable item for shortage messages
Enable Item attribute for checking shortages
Assign the planner and buyer to the items for which
shortage messages need to be received by them
Required setup to send notification to item and
assembly / component planners and buyers
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Item Attributes for Shortage

Messages
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Material shortages
Enable the transaction types for alert or
shortage notifications
Available transaction types are
Purchase receipts or RMA receipts

Miscellaneous transactions
WIP material transactions
WIP completion
Work order less completion
All the above transaction types result in an

action of receipt into subinventory
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Setting up Transaction Type for

Shortage Notifications
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Material shortages
Schedule the Material shortage check
processor concurrent program
Set up notification preferences of the user
Use preferences window in oracle workflow
As html or email etc
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Material shortages
Viewing shortage alerts
Displayed automatically when receipt is performed
Viewing shortage notifications

Using the workflow notifications summary window
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Serial genealogy
Facility to track serialized items / components
history from receipt through WIP to customer
sale
Helps in problem isolation, resolution

Enables improved supplier performance monitoring
Aids quality tracking
Generated using the material transactions records
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Serial genealogy
Features
Provides a graphical interface for viewing
composition and transaction history of any serial
controlled item
Provides features for forward and backward tracing
Visibility to transactions that created / used the
item/component
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Serial genealogy
Capturing serial number information
In WIP when
Pushing components to a job

Pulling components at an operation on the job
Pulling components when completing the assembly
Backflushing components when performing work order
less assembly completion
In order entry when

Ship confirming a serial controlled item to a customer
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Serial genealogy
Capturing serial number information
In PO / Inventory when
Receiving a serial controlled item against a vendor PO
Building serial genealogy

WIP provides facility to enter end item serial number
to which each component serial number is being
issued
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Serial genealogy
View serial genealogy using the View
genealogy form
Parent genealogy
Child genealogy
Transaction history
Setting up serial genealogy
Item attribute for serial generation

At receipt or Predefined
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View Serial Genealogy
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Lab 5.1 Move Orders

Verify that in organization parameters have a
value of Null for Move order time out period
Make sure that negative values are allowed in
the inventory organization to be used for the
exercise
Create an item in the inventory organization
indicated by the instructor using the template
for a Purchased item
Create the item name as XX_DRP_M
Use your initials in place of the prefix XX
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Lab 5.1 Move Orders (Contd.)

Create a move order for moving a quantity of
10 units from the stores sub inventory to the
floor stock sub inventory
Select the move order and detail it for a
quantity of 1 unit from stores
Transact and verify that the requested quantity
has been moved
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LAB 5.2 Material Shortage

Create a component item in the inventory
organization using Purchased item template.
Create the item name as XX_DRP_C
Enable the item for shortage monitoring
Attach the item in the bill of material for

assembly AS18947 at the first operation.
Set the shortage parameters for the
organization.
Enable the following transactions for the
triggering shortage alerts
Purchase receipts
Miscellaneous receipts
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LAB 5.2 Material Shortage (Contd.)

Create a discrete job for a quantity of 10 for
assembly item AS18947 and release it
Check component requirement for component
XX_DRP_C
View potential shortages
Perform a miscellaneous receipt for the item
XX_DRP_C into the floor stock sub inventory
for a quantity of 10 units
Oracle inventory should generate a shortage alert and
allow visibility to the shortage record
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INVENTORY PLANNING AND REPLENISHMENT
Objectives
Inventory Planning
Concepts in Inventory Systems

Order Point Inventory Control Systems
Min-Max Planning
Min-Max Planning Parameters
Conditions under which Min-Max Planning is used
Reorder Point Planning
Economic Order Quantity (EOQ)
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Objectives
Inventory Planning

Parameters
Safety Stocks
Conditions under which Reorder Point Planning is
used
Replenishment Counting
Non-Tracked Inventory Items Replenishment
Order Modifiers
Popular Sources of Replenishment
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Inventory Planning
The need for Inventory Planning
Essential for managing appropriate levels of inventory
Primarily to answer two key questions:
How much to order ?
When to order ?
Two order point inventory control systems

A fixed order quantity system
A fixed order interval system
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Inventory Planning
Oracle provides three inventory planning
methods to be used:
Min Max Planning
Replenishment count processing
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Inventory Planning
Techniques
Organization
Level
Min-Max
Planning
Reorder Point
Planning
Replenishment
Counting
AT
AT
AT
Organization
SubInventory
Level
SubInventory
Level
Level
Min-Max Planning
A technique where minimum and maximum
levels of inventory are specified
Inventory is managed between the specified levels
When the on hand level of the Inventory Item falls
below the specified minimum level reordering is
triggered
Reorder quantity based on:
Lot for lot
Fixed order quantity
Fixed lot multiples
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Min-Max Planning
Set ups
Define item inventory planning attribute to
Min-max planning for the concerned organization
Specify
Item minimum quantity
Maximum quantity
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Min-Max Planning
Set ups
Define any order modifier for reordering
Minimum order quantity

Maximum order quantity
Fixed lot multiple
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Organization Level Min-Max Planning

Info.
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Min-Max Planning
Min-Max Planning technique can be applied at
the following levels:
Organization level
Sub-inventory level
To implement Min-Max planning at subinventory levels

Assign items to the sub-inventories
Specify Min/Max planning Method for the subinventory
Define sub-inventory level minimum and maximum
quantities
Specify order modifiers
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Min-Max Planning at Subinventory

Level
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Min-Max Planning
Min-Max Planning is performed by
Executing the Min-Max Planning Report
To execute choose Min-Max planning report

and provide the parameters
Choose items,categories, sources of supply, sources
of demand and other required parameters
Choose whether to restock
Choosing yes generates a requisition for reorder
quantity
Submit the report

Run requisition import in Oracle Purchasing
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Min-Max Planning Report Parameters
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Min-Max Planning Report
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Uses Demand Forecast as an input to decide
when to order new quantities of an Item
Prevents consuming the Items safety stocks
Calculated to minimize the total costs of
reordering and carrying inventory
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Economic Order Quantity

EOQ is a fixed order quantity calculated to
minimize the combined costs of acquiring and
carrying Inventory.
EOQ is calculated as:
2*Annual Demand * Avg. Cost of orders
EOQ =
Annual Inventory Carry Cost Percentage*Unit Cost
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Set ups
Define item inventory planning attribute to
Reorder planning for the concerned organization
Define any order modifier for reordering

Minimum order quantity
Maximum order quantity
Set up safety stock calculation method

Mean Absolute Deviation (MAD)
User defined Quantity
User defined Percentage
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Set ups
Define any order modifiers for reordering
Fixed lot multiple
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Reorder Point Planning Item Setup
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Reorder Point Planning technique can be
applied only at organization level
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Reorder Point Planning is performed by
Executing the reorder point planning report
To execute choose Reorder Point Planning

report and provide the parameters
Choose items,categories, sources of supply, sources
of demand, forecast for safety stock computations
and other required parameters
Choose whether to restock
Choosing yes generates a requisition for reorder
quantity
Submit the report

Run requisition import in Oracle Purchasing
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Reorder Point Planning Report Parameters
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Reorder Point Planning Report
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Used to order items for replenishment for non
quantity tracked sub-inventories
Uses methods of visual inspections to enter
either item counts or the reorder quantities
directly
In case of entering a visual count the expected
minimum and maximum levels of the
replenished items also need to be provided as
part of the item/sub-inventory set ups
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For using this process, it is important to
Implement manual processes of visual inspections
To enter replenishment counts use the

replenishment counts form
Provide either visual counts or order quantities for
items in the concerned non quantity tracked subinventories
Choose to process only the counts or only the report
or both
Choosing process counts generates the requisitions
also
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Replenishment Counts
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Item Sourcing For

Replenishment
Sources of Replenishment
Internal / external set up in the item attributes
general planning region
If internal , need to specify internal inventory source
organization and sub-inventory
If sourced from external supplier organization
Supplier name not specified in item attributes
Automatic sourcing rules can be created in purchasing
to specify supplier(s) to whom requirements may be
sourced
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Item Sourcing For Replenishment

Sourcing information can be specified at:
Organization level
Sub-inventory level
Item level
Item / sub-inventory level
When inventory does not find sourcing

information, it uses the above hierarchy for
default sourcing with item/sub-inventory
having highest precedence
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Item Sourcing For Replenishment

When running inventory planning reports
using any of the methods with a re-stock
option selected, Oracle Inventory generates
Internal requisitions if source for item is determined
as internal
Purchase requisitions if source for item is determined
as suppliers
Requisitions created populate the open

requisitions interface in purchasing and can be
imported into Oracle Purchasing by running
requisition import
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LAB 6 Planning (Min-max

Planning)
Enter organization level min-max planning
information for one of the items you have
defined.
Enter subinventory level min-max planning
information for the same item.
Receive some units of the item into the
organization.
Run organization level min-max report for the
item.
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LAB 6 Planning (Reorder Point

Planning)
What are the required attributes to perform
reorder point planning for an item?
What are the methods for calculating safety
stocks for an item?
Which safety stock methods require forecast
as parameter?
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LAB 6 Planning (Replenishment

Counting)
Define a non-tracked subinventory
Enter subinventory level min-max information
for any two items and the non-tracked
subinventory that you just defined.
Enter replenishment counts for the nontracked subinventory by using on-hand
quantity method.
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ABC ANALYSIS
Objectives
ABC Analysis
The relative importance of inventory items based on
certain criteria
How to control these items
How much to order at one time
When to order
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ABC Analysis
With Oracle Inventory the user can:
Perform ABC analysis by organization or subinventory
Choose a different ranking criterion for each ABC
analysis
Define any number of ABC classes using
terminology provided by the user
Assign items to multiple ABC classes
Use ABC analyses to drive cycle counting
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ABC Analysis
Major Features
Define ABC Classes
Define users terminology for identifying classes
(ABC, XYZ, I II III IV, VED etc.)
Define ABC Compile

Choose the compilation criterion, the scope of
compilation
The cost type to use to determine item values etc.
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ABC Classes
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ABC Compile
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ABC Analysis
ABC Compile Scope
Determines the list of items for inclusion in ABC
analysis
The user can compile ABC analyses for an entire
organization or an individual sub-inventory
ABC Compile Valuation Scope

Specifies whether the sub-inventory valuations or the
organization valuations are to be used for ranking if
the content scope is sub-inventory
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ABC Analysis
ABC Compile Criteria
Current on-hand quantity
Use the current system on-hand quantity of the item
Current on-hand value

Use the current on-hand value of the item
Historical usage quantity

Use the total historical transaction quantity of the item
The sum of all transaction quantities for the item
Historical usage value

Use the total historical transaction value of the item
The sum of all transaction values for the item
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ABC Analysis
Historical number of transactions
Use the total number of transactions against each item
Forecasted usage quantity

Use the total forecast quantity of the item, as forecast
by the specified forecast name
Forecasted usage value

Use the total forecast value of the item, as forecast by
the forecast name specified by the user
Previous cycle count adjustment quantity

Use the sum of all previous cycle count adjustment
quantities for this item
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ABC Analysis
Previous cycle count adjustment value
Use the total of all previous cycle count adjustment
values
MRP demand usage quantity

Use the sum of all gross requirements for the item, as
generated by the user-specified MRP plan
MRP demand usage value

Use the expected total demand usage value of the item,
as generated by the MRP plan specified by the user
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ABC Analysis
Compile
To generate the ABC compile
ABC Assignment Groups

Allows the user to link an ABC compile with a valid
set of ABC classes
Assign Items
To assign items to valid ABC codes defined
Update Classes
To manually update ABC classes assigned to items
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ABC Assignment Groups
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Assigning ABC classes to Assignment

Groups
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Assign ABC Items
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LAB 7
ABC Analysis
Define three ABC classes.

Rank the items in a subinventory based on
current on hand quantity criterion. Choose the
subinventory as validation scope.
Create an ABC group using the ABC
compilation and three ABC classes you just
defined.
Assign the items in your ABC compilation to
three classes
Verify the ABC assignment report for the ABC
group just created
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CYCLE COUNTING AND PHYSICAL

INVENTORY
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Objectives
Cycle Counting & Physical Inventory
Inventory cycle counting techniques
Physical inventory techniques
How they compliment each other to ensure inventory
accuracy
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Cycle counting is:
The technique of periodically counting items
throughout the year to ensure the accuracy of the
inventory quantities and values
An essential prerequisite for:
Managing supply and demand
Maintaining high service levels
Planning production
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APICS defines Cycle Counting as:
An inventory accuracy audit technique where
inventory is counted on a cyclic schedule rather than
once a year
Physical Inventory
The actual inventory itself
The determination of inventory quantity by actual
count
Physical Inventories can be taken on a continuous,
periodic, or annual basis
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Cycle Counting
Cycle counting - is the periodic counting of
individual items throughout the course of the
year to ensure the accuracy of inventory
quantities and values
Cycle counting may be performed instead of
taking complete physical inventories
Both techniques can be performed side-by-side
to verify inventory quantities and values
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Define
Cycle
Count
Schedule the Cycle Count
Perform Cycle Count
Adjust Based
on Approval
Tolerances
Approve
Reject
Generating Cycle Count Requests

Define Cycle Count
Choose a name, calendar, adjustment account
Specify count controls, sub inventories to count
Generate daily, weekly, or periodic count requests
and lists based on the users schedule
Can use a calendar complementary to work calendar
Choose approval method

Approve, reject, or request recounts for cycle count
automatically
Based on quantity / value based tolerances
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Define Cycle Counts
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Choose items manually for inclusion in the
cycle
Items attribute Cycle Count Enabled should be
selected
Specify items as control group items

Always prompted for inclusion in every scheduled
count
Indicated whether to include items in the control
group as a control measure
Choose items using an ABC assignment group

Items can be added or loaded into from an ABC
assignment group to a cycle count
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Cycle Count Items
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Choose scheduling policies for cycle count
Manual or automatic
Specify count scheduling frequency
Specify class count frequency
Specify class / item level tolerances if desired
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Scheduling count requests automatically/manually
Run the generate count request from special menu
Oracle Inventory uses:

The number of items in each cycle count class
The count frequency of each class
The workday calendar specified in the cycle count
definition
To determine which items to include on a specific

count
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Manual Scheduling
Schedule counts manually in addition to, or
instead of automatic scheduling
Run the cycle count request manually
Have no impact on automatically scheduled counts
Can be used to count some items more frequently
than initially planned
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Manual Scheduling
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Enter Cycle Counts
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Count and Adjustment Approval
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Physical Inventory
Physical Inventory
The actual inventory itself
Determination of inventory quantity by actual count
Can be taken on a periodic or annual basis
Oracle Inventory support physical inventory

process
Used to reconcile system on-hand balances with
actual counts of inventory
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Physical Inventory
Define Physical
Inventory
Take a Snapshot
Generate Tags
Enter & Void

Tag Counts
Approve
Reject
Physical Inventory
Define Physical Inventory
For the entire inventory organization or specific subinventories within the warehouse
Choose approval policies
Required, not required or required when out of
tolerances
Define approval tolerances also
Run snapshot
Creates a snapshot of system on-hand quantities
Used to freeze on hand quantities at a given point in
time
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Define Physical Inventory
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Physical Inventory
Define Tag Numbering Scheme
To generate blank or pre-numbered, manually
entered tags
Specify tag prefix and start number, increment for
automatic numbering of alphanumeric tags
Generate Tags
Inventory generates one tag for each unique
combination of item, revision, sub-inventory, locator,
lot number and serial number
Oracle Inventory can generate default or blank tags
for the physical inventory
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Generate Physical Inventory Tags
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Enter Physical Inventory Tag Counts
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Physical Inventory
Generate Tags
The tag numbers may be alphanumeric, but only the
numeric portion may be incremented
The alphabetic characters in the tag number stay
constant
Tags must be fully accounted for or voided
Void unused or lost tags
Approve or reject physical inventory

adjustments
Based on approval tolerances
Post Adjustments
To inventory balances and general ledger accounts
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Approve Physical Inventory Adjustments
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LAB 8 Cycle Counting & Physical

Inventory
Define a cycle count header and initialize it with the
ABC group from the previous exercise.
Enter count frequencies for each class after
initializing the cycle count.
Change the cycle count class of one item within the
ABC group.
Generate schedule requests with the automatic
scheduler.
Generate count requests for your cycle count.
Enter counts for your cycle count. Enter counts that
are different from system on hand quantities.
Enter an unscheduled count for any one item. Enter
a count that is different from system on hand
quantity.
Approve the cycle count entries.
Verify that the Oracle inventory completes the
adjustments.
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LAB 8 Cycle Counting & Physical

Inventory
Record on-hand quantities for a subinventory.
Define a physical inventory for the
subinventory. Set the approval option to
Always and do not enter any tolerances. Enable
Dynamic Tags. Take a snapshot of on-hand
quantities.
Generate default tags for the physical
inventory.
Enter tag counts by using the default tags.
Void one of the tags.
Approve the adjustments.
Adjust the physical inventory quantities.
Verify that the oracle inventory completes the
adjustments.
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WORKDAY CALENDAR
Objectives
Workday Calendar
Understand Workday Calendar in Oracle Inventory
Defining a Workday Calendar
Shifts and Shift Exceptions
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Workday Calendar
Workday Calendar
Definition of available workdays for one or more
organizations
Used by many modules of Oracle Applications
Oracle
Oracle
Oracle
Oracle
Master Scheduling/MRP
Inventory
Work in Process
Capacity
To plan and schedule activities based on a calendars

available workdays
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Workday Calendar
Defining a Workday Calendar
Define calendar start date, end date
Specify on off pattern (for example, 5 days on before
an off occurs and 2 days off before an on occurs)
Manually mark any specific days as exception to the
pattern or define and load an exceptions list
Define Workday Exception Set

To denote holidays, preventive maintenance
downtime
Define Shifts
Optional, provides flexible shift schedules and
timings
Define shift exceptions
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Workday Calendar
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Workday Calendar - Shifts
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LAB 9
Workday Calendar
What workday pattern would you define for

you organization if the first and only shift
worked Monday through Saturday?
What departments would you notify before
changing your available workdays to add
overtime, maintenance, or a new holiday?
If Plant # 1 shares a calendar with other
manufacturing plants, would you require a
new workday calendar if you added a shift to
the Plant # 1?
Raju Ch
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UNIT OF MEASURE
Objectives
Unit of Measure UOM Classes
Unit of Measures
UOM and Conversions in Oracle Manufacturing
Managing Units of Measure in Oracle Manufacturing
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Unit of Measure
Unit of Measure
Unit in which the quantity of an item is measured,
recognized, stored, received , issued or transacted
pounds
each
box of 12
package of 10
case of 14
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Define Unit of Measure
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Unit of Measure - Classes

UOM classes -represent a physical property of
items that can be measured
Weight, volume, force, current etc.
Each class groups units of measures with similar
properties such as Volume or Length
One of the various units of measures in each class is
used as the base unit of measure for that class
All conversions to other units are w.r.t the base unit
Need to define units of measure for tracking, moving,
storing and counting items
Defined using the define UOM Classes
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Unit of Measure - Classes
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Unit of Measure - Conversions

Conversions
Standard conversion within UOMs of the same class
e.g. Length in KMs and in Miles or in Meters
Item specific conversion within UOMs of the same

class
One meter roll of film on being converted into ft results
in only 3 ft because of wastage
Item specific conversion within UOMs of a different

class
One Gallon of paint on being converted to square feet
results in 300 sq.ft of applied area
Accomplished using conversion factors in the UOM

conversions form
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Unit of Measure - Conversions
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LAB 10 Unit of Measure

Define a UOM class along with a new base
UOM.
Define a non-base UOM belonging to the class
that you just defined.
Define a standard conversion between your
base UOM and the other UOMs in the class.
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AVAILABLE TO PROMISE (ATP)
Objectives
Available to Promise
ATP
ATP Rules
ATP Computation Options
ATP Time Fence Options
Supply and Demand Sources
Used for ATP calculations
ATP in Organization
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Used to make valid achievable delivery
promises to customer
Provides ability to match customer
requirements demands to available on hand and
expected supply
ATP calculations determine the uncommitted
portion of companys inventory and planned
supply.
If inventory and planned supplies exist, they
can then be promised to meet customer
demand
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ATP calculations assist in committing items
requested Items in specified quantities, at a
specified date
The ATP quantity is the uncommitted inventory
balance in the first period and is normally
calculated for each period in which a Master
Production Schedule (MPS) receipt is scheduled
ATP includes on-hand inventory less customer
orders that are due and overdue
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The ATP Algorithm
Benefits of ATP
Availability of an Item in required quantity on a
specific date is determined
Availability of a group of Items in required quantities
on a specific date can also be determined
Earliest availability dates for an Item or a group of
Items, can be determined
For ATO & PTO items ATP takes into account the
availability of key components
ATP results are supported by Supply and Demand
details for an Item over a period of time and can be
viewed for decision purposes
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Implementing ATP in Inventory
Define ATP Rules
Associate ATP rules to the specific items in the ATP
rule item attributes
For items for whom ATP calculation is to be done
during Order Entry enable the check ATP item
attribute
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For models, if ATP of components is also to be
assessed , check ATP components Item attribute
This attribute can be set to Yes only if any of the
below listed attributes are set to yes
Assemble To Order is set to yes
Pick Components is set to yes
WIP supply Type is set to Phantom
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Specify components in the Bill Of Materials for which
ATP will be done/not done
Over rides the item attribute level setting
Use the ATP form to perform ATP calculations
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Define ATP Rule
Use the define ATP rule form to create rules
No limit on number of ATP Rules that can be created
Specify consumption options

Specify accumulation options
Specify demand & supply past due information
Specify infinite supply time fence information
Select sources of supply to consider in ATP calculations
Select sources of demand to consider in ATP
calculations
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Define ATP Rule
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Backward Consumption
Allows the user to check prior records for available
quantities of Items to meet demand
Forward Consumption
Allows the user to check future records for available
quantities of Items to meet demand
Accumulate Available
Allows use of excess quantities from a period to
accumulate in future periods
An accumulation window can be specified
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Possible Choices
No forward and no backward consumption
Also know as period ATP
Forward consumption only

Backward consumption only
Backward consumption and accumulate available
Forward consumption and backward consumption
Forward consumption and backward consumption
with accumulate available
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Demand and Supply Past Due Days
Past due demand days
ATP does not include any demand orders with a due
date prior to this time fence
Past due supply days

ATP does not include any supply orders with a due date
before this time fence
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Define ATP Rule (contd.)
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Infinite Supply Time Fence
Oracle Inventory does not consider supply sources
scheduled on or after this date in ATP calculations
It assumes that after this date infinite supply is
available to cover any demand
Choice in terms of:
Cumulative manufacturing lead time

Cumulative total lead time
Total lead time
User defined time fence
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Sources of supply to consider in ATP
calculations
Choose to include current on-hand quantity,scheduled
intransit shipments, purchase orders, vendor
requisitions, internal requisitions, discrete WIP jobs,
repetitive schedules, and discrete and repetitive MPS
supply
Sources of demand to consider in ATP

calculations
Choose to include sales orders, internal
orders,Discrete WIP jobs and repetitive schedules as
sources of demand
Option to choose sources of supply and

demand specific to a demand class
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Using ATP
Use the ATP form in Inventory
Specify item, quantity needed and the date by which it is
needed
Specify the ATP rule to be used if not already defaulted
Results displayed on selecting ATP results
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Viewing ATP Information
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Using ATP
In addition to running ATP for an individual item, the
user can run group ATP
Available in order entry
Group ATP allows the user to specify multiple items,

and executes an ATP for the group as a whole.
Group ATP is useful if a multiline order must be
fulfilled completely or if the user has multiple items
that ship as a set
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LAB 11 Available to Promise

Define an ATP rule XX_ATP_RULE, meeting
following criterion:
The ATP quantity is the period ATP

Infinite supply option = 15 days
Demand source = sales order only
Supply source = available on-hand quantity only
Enable ATP checking for one of the items that

you have defined. Assign the ATP rule defined
above to your item.
Use your ATP rule to perform an ATP inquiry
on an item.
Raju Ch
Raju Ch
Forecasting
Objectives
Forecasting
Forecasting methods
Forecast Sets
Various Types of Demand
Time Buckets
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Forecasting
Forecasting Methods & the Techniques
Available for Forecasting
Consuming Forecasts
Various Levels of Consuming Forecasts
Forecasting Operations & Forecasting Rules
How to Compile Statistical Forecasts
How to Import Forecasts from External Sources
Exploding Forecasts by Demand Class
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Forecasting
APICS Definition
Forecasting is the business function that attempts to
predict sales and use of products so they can be
purchased or manufactured in appropriate quantities
in advance
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Forecasting
Oracle Inventory provides two broad types of
methods:
Focus Methods
Statistical Methods
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Forecasting
Focus Forecasting Method:
Short-term method
Based on simulation of alternate forecasting methods
from prior periods in which the actual demand is
known
Chooses the forecasting method that produces the
best fit forecast for the known period
Intended to produce only one forecast period
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Forecasting
Statistical Forecasting Method:
Addresses a longer term time frame
Provides forecasts for numerous future periods
Oracle Inventory provides algorithms for:
Exponential Smoothing forecast (ESF)

Trend-Enhanced forecast (TEF)
Season-Enhanced forecast (SEF)
Trend and Season-Enhanced forecast (TSEF)
Raju Ch
Forecasting
ESF technique
Demand forecast by averaging actual demand from
previous periods
The more recent data has greater influence than the
old data
TSF technique
Incorporates trend factor in the demand forecast
Implemented by introducing a Tend Index in the
basic ESF model
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Forecasting
SEF Technique
Incorporates seasonality into forecast calculations
Incorporated by including a seasonality index in the
forecast model
Represented as a factor indicating the deviation from
the average demand
TSEF
Reflects a combination of the TEF and SEF techniques
Produces a forecast demand that is adjusted for the
trend as well as the seasonality of the demand
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Forecasting
Forecasts in Oracle Inventory
Can be created using:
Manual entry
Using Oracles Focus / Statistical methods of forecasting
Using third party tools and importing forecast using the
open forecast interface
Can use any combination of historical, statistical, and

intuitive forecasting techniques
Ability to create multiple forecasts
Create aggregate forecasts by grouping
complimentary forecasts into forecast sets
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Forecasting
Has the capability to consume forecasts each time
customers place sales order demand for a forecast
product
Ability to loads forecasts, together with sales orders,
into master demand and production schedules
Provides capability to derive forecast for dependent
items
Forecast explosion uses the BOM structure to derive the
dependent demand for MDS and MPS planned items
Explodes Forecasts from aggregate for product families,
and models
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Forecasting
Ability to define demand classes for group of
customers or sales orders with similar characteristics
and consume forecasts by demand class
Ability to use MPS to drive MRP
Ability to loads forecasts from multiple organizations
Forecasts defined in daily, weekly, or periodic
buckets
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Forecasting
Forecast contains information on:
Original quantities
Current quantities
Confidence factor
Specific customer related details
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Forecasting
Creating Forecasts in Oracle
Define forecast rules

Enable forecast control item attribute
Enter and maintain manual forecast entries
Enter aggregate forecasts
Populate forecast interface if from external system
Define forecast sets
Load forecasts
Consume forecast for booked sales orders
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Define Forecast Rules
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Define Forecast Entries
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Forecasting
Forecast Set
Group of one or more complementing forecasts
To define a forecast set specify:
Forecast Level
Consumption Level
Outlier Percentage Update
Backward & Forward Consumption Days
Time Bucket Types
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Define Forecast Set
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Forecasting
Item attributes used in planning and
forecasting
Items that have independent demand have planning
attributes as MDS or MPS planned items
Items which have dependent demand typically have
Planning attributes as MRP planned
Forecasts are generally prepared for MDS / MPS
planned items
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Master Items Forecasting Attribute
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Forecasting
Forecast Consumption
Total demand is sum of forecast demand and sales
order demand
The process of replacing forecast demand with actual
sales order demand is called consuming forecast
Done on booking of a sales order by using the sales
order schedule date
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Forecasting
Forecast Consumption Affected by:
Forecast Level
Demand Class
Sales Order Quantity
Sales Order Date
Forecast Bucket Type
Backward & Forward Consumption Days
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Forecasting
Performed in two ways:
Consumption by Demand Class - forecasts are
consumed at the Demand Class level for a Group of
Items which are similar in nature and the Sales Order
Demand addresses the same Demand Class.
Consumption by Forecast Level
Item level
Customer level
Bill-to Address level
Ship-to Address level
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Forecasting
Backward Consumption Days
Number of days back from current date the Inventory
searches for and consumes the forecast demand
against sales order demand if no forecast quantities
are available for the Sales Order Date
The quantity consumed equals the Sales Order
Quantity
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Forecasting
Forward Consumption Days
Number of days forward from the current date
Inventory search for and consumes forecast demand
if no forecast quantities are available for the Sales
Order Date
The quantity consumed equals the Sales Order
Quantity
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Forecasting
Forecasts can be:
Copied
Modified while merging them into new ones
Raju Ch
Raju Ch
Forecasting
Forecasts can be imported from external sources
In the Oracle Inventory system, these imports are
facilitated through the Forecast Interfaces
Forecasts may be imported from other systems to
load into the Master Schedules of the local system
The various ways of importing forecasts follow:
Copy Forecasts
Modify Forecasts
Explode Forecasts
Review Forecasts
Purge Forecasts

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Course Overview (Contd.)

Defining Enterprise Structure

Define organization parameters

Source Information for Replenishments

Defined using the define key flexfields form

Defined using the define sub-inventory form

Asset sub -inventories

ITEM SETUP AND ITEMS

Standard Component Item

Item Status Attributes

Eight status attributes

Item Status Attributes

Item Status Attributes

Customer Orders Enabled

Internal Orders Enabled

Certain attributes depend on each other. For example:

Customer order enabled must be no

Attribute Control Level

Item Status Control Attribute

Item Status Control Attribute

Item Status Control Attribute

Item Status Control Attribute

Define Item Status

Attribute Control Level

Attribute Control Level

Attribute Control Level

Attribute Control Level

Item Master Organization

Copying of Items from an item master organization

Defining Master Items

Defining Master Items

Defining Organization Items

Items can be defined by:

Item Cross-References are defined in the Define

Defined using the Item Relationships form

Manufacturer Part Number

Defined using the define Manufacturer Part

How do you set up multiple sites under one

Inventory Setup (contd.)

Create an item template XX_PUR_TEMPLATE for

Item Classification & Cataloging

Assign Item to Item Catalog Group

Category set is a flex field structure

Assign Item to Categories

Each Category Set can have a different Flexfield

Default Category Set

Used for automatically defaulting categories for

Default Category Set

Define two categories.

Item Controls in Oracle Inventory

Used for tracking a specific batch of items

Generated at item level or

Item Setups for Lot Control

Define Shelf Life Control

Lot based picking rules

Serial Number Control

Serial Number Control

Serial Number Control

Item Setups for Serial Control

No serial control for item

Uses the prefix and starting number to