Enhanced Order Fulfillmentusing

Oracle Global Order Promising

Navneet GoelDevelopment Manager

Oracle Corporation

Traditional Approach

• Response 1: Maintain Excess Inventory

• Response 2: Reserve Production Capacity

• Response 3: Expedite Everything!

Customers Suppliers

Tier 2

Tier 1

Marketing Forecast

Sales Forecast

MfgForecast

Distribution Plans

Production Plans

ManufacturingPlans

t = weeks

?Demand Planning Process Supply Planning Process

Multi-step planning processes, high latency, limited collaboration

Supply Chain Built on Inventory

A Better WayA Better Way

Move to a More Competitive Model

• Enable closed loop planning processes across your value chain

• Provide total supply chain visibility

• Make better decisions

• React immediately to changes in supply chain

Internet

Customers Suppliers

Tier 2

Tier 1

Marketing forecast

Sales forecast

Mfgforecast

Single holistic plan

t = hours

Consensus forecast

Automatedexceptions

PortalPortal

Collaborativedemand plan

Collaborativesupply plan

Automatedexceptions

Automatedexceptions

Collaborative Planning Process

Demand Planning Process Supply Planning Process

Oracle’s APS: zero latency, real-time collaboration

Build your Supply Chain on Information not Inventory

Agenda

• APS Overview/ Architecture

• Oracle’s ATP flavors

• Set up– Profile Options

– Key Concurrent Requests

• Core GOP features

• GOP Computation

• Diagnostics

• Q&A/ Feedback

APS Architecture

Advanced Planning

APIS

Trading partners Internal Users

Internet

Oracle ERP

Legacy Systems

XMLEDIFlat file

Order Promising Engine

Portals

AnalyticalWorkspaces

KPIs Workflows Plans

Oracle ERP 10.7Oracle ERP 11.0

Oracle ERP 11i

Oracle’s ATP Flavors

• Setup via profile “INV: Capable to Promise”– ATP based on Collected Data (ODS)

• Single Level ATP

• Supports simple supply chain

– ATP/CTP based on Planning Data (PDS)• Single Level ATP

• CTP across supply chain using Sourcing/BOM/Routings

• Based on ASCP plan in APS

• Supports complex supply chain model

Collection Based ATP (ODS)

• Single Level ATP in requested org/ Global ATP

• Need to run “Data Collection”– Complete

– Net Change

• ATP Rule determines:– Supply/Demand to be included

– Infinite Supply Fence

• May use a Supply Schedule, e.g., MPS

Planning Based ATP (PDS)

• Promise orders based on:– Material availability

– Manufacturing capacity

– Supplier capacity

– End-Item/Component Substitution

– Product Family

– Infinite Supply Time Fence

• Manage commitments to key customers– Re-schedule and re-sequence your backlog

Planning Based ATP (PDS)

• Global statement of availability– All facilities, material, resources, and suppliers

– Region-Based Sourcing

– Summary Based ATP

• Allocate available supply– By channel, customer, or product

– Priority and stealing rules

– Time phased

GOP Setup

• Profile Options• ATP Flag Setup• Sourcing/ BOM/ Routings• ATP Rule

– Time Fence– supply/demand sources (ODS)

• Plan Options• Request Date Type• Ship/Arrival Sets

Profile Options

INV: Capable To Promise INV: External ATP MRP:ATP Assignment

Set MRP: Calculate Supply

Demand MRP:Include Substitute

Components MSC:ATP Assignment

Set MSC: ATP Debug Mode

MSC: Enable Allocated ATP

MSC: Class Hierarchy MSC: ATP Allocation

Method MSC: Enable ATP

Workflow MSC: Enable ATP

Summary Mode MSC: Plan co-products

Concurrent Request/Set

• System Administrator Responsibility– Gather Schema Statistics

– Create APS Partitions

• OM Responsibility – For ODS ATP (no APS)– ATP Data Collection

– Load ATP Summary Based on Collected Data

Concurrent Request/Set

• Run from Advanced Supply Chain Planner Responsibility– Planning Data Collection

– Launch ASCP Plan

– Create ATP Partitions (Only during upgrade)

– ATP Post Plan Process

– Refresh Allocation Hierarchy Materialized View

– Analyze Plan Partitions

Core GOP Features

Global Availability - Example

Customer1, Site1 Requests Item A

A/Org1 (M1) A/Org2 (M2)

Rank 1 Rank 2

Type Org/Sup Percent RankTransfer M1 100% 1Transfer M2 90% 2

Sourcing Rule(SR-A)

Type Item SRItem A SR-A

Assignment Set

Org Day10 Day11 Day12 Day13M1 80 85 90 100M2 90 95 100 110

Cum ATP

ATP Request Info: Request Qty 100, Request Date Day10, Latest Acceptable Date Day12

ATP Result: Qty 100 from M2 on Day12

Global Availability

• Availability Information across warehouses

• Best option based on– Availability

– Rank

• Sourcing via Region-based rules

• Computes Delivery LT and Ship/Arrival Date

• Supports calendar for– Shipping

– Receiving

– Carrier/In-transit

Region Level Sourcing

• Multiple levels of Geographical Hierarchy

• Region based Inter-Location Transit times/ ship methods for customer-site and shipping warehouse

• Enable sourcing/ lead time calculation for new customers

• Supports flexible hierarchical setup via assignment set/ sourcing rules

• Profiles– MRP: ATP Assignment Set

– MSC: ATP Assignment Set

GOP with No Downtime (24X7 ATP)

• Zero downtime– No downtime when underlying supply chain plan is refreshed

– No SO is lost, automatically re-promise SO against new plan

• Open, reliable, and scalable– Engine runs inside the database, No memory models to load!

– Multi-threaded

– Integrated with OM, Quoting, iStore, etc.

– Easy integration with legacy systems

Capable to Promise (CTP) - Example

A (Customer 1, Site 1)

A (Org 2)A (Org 1)

B (Org 2)B (Org 1) R2 (Org 2)R1 (Org 1)

B (Supplier 1) B (Supplier 2)

1 day lead-time 5 day lead-time

4 day lead-time5 day lead-time

Capable to Promise (CTP)

• Increased order fill rate using extra manufacturing and supplier capacity

• CTP finds availability using make/buy/transfer info by request date (Backward Scheduling)

• Forward Scheduling involves look ahead CTP, determines when orders for items can be fulfilled

• Recursive check against BOM

Allocated ATP

• Group/ Prioritize Customers per business need thru– Demand Class

– Customer Class Hierarchy

• Material may be allocated to these groupings using – Pre-defined allocation rules

– Forecast quantities as honored by ASCP Plan

• Stealing of supplies from lower priorities prior to CTP

• Ensure target supply to key customers

Allocated ATP

• Manage commitments to key customers

• Allocate availability to more profitable channels

End-Item Substitution

• Improved demand fulfillment/ inventory utilization

• Supports– Single or Bi-directional Substitution, chaining

– Time phased Substitution, substitution window

– Rule Based/ Customer Specific substitution

• Availability of Requested vs. Substitute Item

• CTP for Requested vs. Substitute item

• Exception/ Workflow Notification for Item Substitution

• Stealing prior to Substitution with Allocated ATP

Product Family ATP

• 2 Flavors– based on ATPable PF Item Only (Pre-11.5.10)

– using member item within Aggregate Time Fence and PF item outside Aggregate Time Fence (11.5.10)

• Plan must contain PF Item as well

• Forecasting may be done either for PF or member item

• CTP will be done on member item, if needed, for time-phased PF ATP

• Supports Allocated ATP

Supplier Capacity

• Supplier Capacity may be checked during CTP– defined in ASL

– Infinite Capacity after last date in ASL

• Sourcing Rule/Assignment Set per ASCP Plan

• Creates Planned Orders for Supplier-Site in ASCP Plan

• Planned Orders may be released prior to next plan run

Resource Batching

• Batch process: Same work on multiple items for a pre-set amount of time by same resource simultaneously, like heat treatment, sand blasting, etc.

• Resources are constrained by product of time and weight or volume, i.e., capacity multiplied by time.

• Only for constrained plans with routings

• Setup:

– Enable batchable flag, Capacity UOM in ERP

– Profile: “MSO: Global Batchable Flag” in APS

Summary Based ATP

• Supports enhanced performance with accuracy

• Profile: “MSC: Enable ATP Summary Mode”

• Post-plan process generates summarized data

• Run Concurrent program periodically for incremental summary

GOP Computation

Netting– Net Supply-Demand for a given day/time period

Backward Consumption– Use surplus from past to cover existing shortage

Forward Consumption– Use future surplus to cover existing shortage

Accumulation– Carry over the availability

Stealing (for AATP)– Steal supplies from lower priority tiers for new demands

GOP Computation

Example

D1 D2 D3 D4

Supply 10 10 10 10

Demand 4 18 6 7

Net Qty 6 (-8) 4 3

Backward 0 (-2) 4 3

Forward 0 0 2 3

Cum Qty 0 0 2 5

31

Summary

Pegging Info

32

Supply/Demand Details

33

ATP Period Info

Diagnostics – Setup

• Input Data

• Profile Options

• Item Attributes

• Regions/Zones

• Sourcing setup

• Lead Times

• Infinite Time Fence

• ATPable Plan Info

• BOM/ Routings

• Allocation Method/ Rule/ Percentage/ Priority

• Resource Batching

• End Item Substitutes

• Component Substitutes

Diagnostics – Debug/Trace File

• Set user profile (MSC: ATP Debug Mode) before invoking ATP/ Scheduling as:– Functional issues: “Debug Only”

– Performance: “DB Trace Only” or “Debug & DB Trace”

• Provide debug (session-<n>) or trace/tkprof file (from DB trace location)

• Re-set profile to 'None' to avoid any performance issues

Questions/ Feedback

Navneet.Goel@oracle.com

Reference - Acronyms

• Industry Standard– ATP (Available To

Promise)– GOP (Global Order

Promising) – CTP (Capable To Promise)– PTO (Pick to Order)– CTO (Configure To Order)– ATO (Assemble To Order)– CTD (Capable To Deliver)– BOM (Bill of Materials) – BOR (Bill of Resources)

• Oracle Specific– APS (Adv. Planning &

Scheduling)– ASCP (Advance Supply

Chain Plan)– ODS (Operational Data

Store)– PDS (Planning Data Store)– LAD (Latest Acceptable

Date)– AATP (Allocated ATP)– ATF (Aggregate Time

Fence)