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Overview of InventoryManagementStudent Guide
Course Code 14509GC10
Edition 1.0
Month July 2000
Part Number MO-11959
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Copyright © Oracle Corporation, 2000. All rights reserved.
This documentation contains proprietary information of Oracle Corporation. It is provided under a licenseagreement containing restrictions on use and disclosure and is also protected by copyright law. Reverseengineering of the software is prohibited. If this documentation is delivered to a U.S. Government Agency of theDepartment of Defense, then it is delivered with Restricted Rights and the following legend is applicable:
Restricted Rights Legend
Use, duplication or disclosure by the Government is subject to restrictions for commercial computer softwareand shall be deemed to be Restricted Rights software under Federal law, as set forth in subparagraph (c)(1)(ii)of DFARS 252.227-7013, Rights in Technical Data and Computer Software (October 1988).
This material or any portion of it may not be copied in any form or by any means without the express priorwritten permission of the Education Products group of Oracle Corporation. Any other copying is a violation ofcopyright law and may result in civil and/or criminal penalties.
If this documentation is delivered to a U.S. Government Agency not within the Department of Defense, then it isdelivered with “Restricted Rights,” as defined in FAR 52.227-14, Rights in Data-General, including Alternate III(June 1987).
The information in this document is subject to change without notice. If you find any problems in thedocumentation, please report them in writing to Worldwide Education Services, Oracle Corporation, 500 OracleParkway, Box SB-6, Redwood Shores, CA 94065. Oracle Corporation does not warrant that this document iserror-free.
Oracle and all references to Oracle Products are trademarks or registered trademarks of Oracle Corporation.
All other products or company names are used for identification purposes only, and may be trademarks of theirrespective owners.
Author
Shahrzad Hessabi
Technical Contributors and Reviewers
Susan Ellsworth, Pam Freeman, Paul Taylor, Eileen Wexler
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Overview of Inventory Management Table of Contentsi
Table of Contents
Overview of Inventory Management ...................................................................................1-1Overview of Inventory Management ...................................................................................1-2Objectives ............................................................................................................................1-3Agenda.................................................................................................................................1-4Overview .............................................................................................................................1-5Inventory Flow Process .......................................................................................................1-6Oracle Inventory Integration with Manufacturing Applications.........................................1-7Integration of Oracle Inventory to Financial Applications .................................................1-8Agenda.................................................................................................................................1-9Inventory Enterprise Structure.............................................................................................1-10Inventory Organizations ......................................................................................................1-11Inventory Organizations Flow Chart ...................................................................................1-13Oracle Organization.............................................................................................................1-14Unit of Measure ...................................................................................................................1-15Organization Calendar .........................................................................................................1-17Review Question..................................................................................................................1-18Agenda.................................................................................................................................1-20Creating and Maintaining Items...........................................................................................1-21Item Statuses and Attributes ................................................................................................1-22Status Attributes...................................................................................................................1-24Review Question..................................................................................................................1-25Defining Items .....................................................................................................................1-27Creating Item Templates......................................................................................................1-30Enabling Attributes in a Template .......................................................................................1-31Defining Item Relationships ................................................................................................1-32Defining Items in Item Master.............................................................................................1-33Organization Assignment and Organization Item................................................................1-34Deletion Constraints and Deletion Groups ..........................................................................1-35Review Question..................................................................................................................1-36Categories and Category Sets ..............................................................................................1-38Uses of Categories in Oracle Inventory ...............................................................................1-40Defining Category Sets........................................................................................................1-41Assigning Multiple Categories ............................................................................................1-42Agenda.................................................................................................................................1-43Inventory Controls ...............................................................................................................1-44Overview .............................................................................................................................1-45Locator Control....................................................................................................................1-46Revision Quality Control .....................................................................................................1-48Lot Control ..........................................................................................................................1-50Serial Number Control.........................................................................................................1-51Review Question..................................................................................................................1-52Serial Genealogy..................................................................................................................1-54Tracked Transactions...........................................................................................................1-55Serial Genealogy Example...................................................................................................1-56Agenda.................................................................................................................................1-57Inventory Transactions ........................................................................................................1-58Overview of Inventory Transactions ...................................................................................1-59Defining Transaction Source Types.....................................................................................1-60Customizing Transaction Entry ...........................................................................................1-61Review Question..................................................................................................................1-62Performing Miscellaneous Inventory Transactions .............................................................1-64
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Overview of Inventory Management Table of Contentsii
Transferring Between Organizations ...................................................................................1-65Inventory Transactions Without Documents and Requisitions............................................1-66Inventory Transactions With Documents and Requisitions.................................................1-67Move Orders ........................................................................................................................1-68Move Order Source Types...................................................................................................1-70Move Orders Process Flow..................................................................................................1-71Shortage Alerts and Shortage Notifications.........................................................................1-72Shortage Alerts and Shortage Notifications Example..........................................................1-73Opportunistic Cross Docking...............................................................................................1-74Collecting and Reporting Movement Statistics ...................................................................1-75Agenda.................................................................................................................................1-76Inventory Accuracy Controls...............................................................................................1-77Cycle Counting ....................................................................................................................1-78Cycle Counting ABC Analysis ............................................................................................1-81Physical Inventory ...............................................................................................................1-83Review Question..................................................................................................................1-85Agenda.................................................................................................................................1-87Inventory Planning and Replenishment ...............................................................................1-88Reorder-Point Planning........................................................................................................1-90Min-Max Planning...............................................................................................................1-92Replenishment from Suppliers and Other Inventory Organizations ....................................1-94Kanban Management ...........................................................................................................1-95Kanban Execution................................................................................................................1-96Summary..............................................................................................................................1-97
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory Management Table of Contentsiii
Preface
Profile
Before You Begin This Course
Before you begin this course, you should have the following qualifications:
• Basic knowledge of inventory management and control concepts
Prerequisites
• There are no prerequisites for this course.
How This Course Is Organized
Overview of Inventory Management is a NetClass. Online demonstrations andpractice sessions reinforce the concepts and skills introduced.
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Overview of Inventory Management Table of Contentsiv
Related Publications
Oracle Publications
Title Part Number
N/A
Additional Publications
• System release bulletins
• Installation and user’s guides
• read.me files
• Oracle Applications User’s Group (OAUG) articles
• Oracle Magazine
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Overview of Inventory Management Table of Contentsv
Typographic Conventions
Typographic Conventions in Text
Convention Element ExampleBold italic Glossary term (if
there is a glossary)The algorithm inserts the new key.
Caps andlowercase
Buttons,check boxes,triggers,windows
Click the Executable button.Select the Can’t Delete Card check box.Assign a When-Validate-Item trigger to theORD block.Open the Master Schedule window.
Courier new,case sensitive(default islowercase)
Code output,directory names,filenames,passwords,pathnames,URLs,user input,usernames
Code output: debug.set (‘I”, 300);Directory: bin (DOS), $FMHOME (UNIX)Filename: Locate the init.ora file.Password: User tiger as your password.Pathname: Open c:\my_docs\projectsURL: Go to http://www.oracle.comUser input: Enter 300Username: Log on as scott
Initial cap Graphics labels(unless the term is aproper noun)
Customer address (but Oracle Payables)
Italic Emphasized wordsand phrases,titles of books andcourses,variables
Do not save changes to the database.For further information, see Oracle7 ServerSQL Language Reference Manual.Enter [email protected],where user_id is the name of the user.
Quotationmarks
Interface elementswith long namesthat have onlyinitial caps;lesson and chaptertitles in cross-references
Select “Include a reusable module component”and click Finish.
This subject is covered in Unit II, Lesson 3,“Working with Objects.”
Uppercase SQL columnnames, commands,functions, schemas,table names
Use the SELECT command to viewinformation stored in the LAST_NAMEcolumn of the EMP table.
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Overview of Inventory Management Table of Contentsvi
Convention Element ExampleArrow Menu paths Select File—> Save.Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously:[Ctrl]+[Alt]+[Del]
Typographic Conventions in Code
Convention Element ExampleCaps andlowercase
Oracle Formstriggers
When-Validate-Item
Lowercase Column names,table names
SELECT last_nameFROM s_emp;
Passwords DROP USER scottIDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER
(‘prod_pie_layer’))
Lowercaseitalic
Syntax variables CREATE ROLE role
Uppercase SQL commands andfunctions
SELECT useridFROM emp;
Typographic Conventions in Navigation Paths
This course uses simplified navigation paths, such as the following example, todirect you through Oracle Applications.
(N) Invoice—>Entry—>Invoice Batches Summary (M) Query—>Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice—>Entry—>Invoice BatchesSummary.
2. (M) From the menu, select Query—>Find.
3. (B) Click the Approve button.
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Overview of Inventory Management Table of Contentsvii
Notations :
(N) = Navigator
(M) = Menu
(T) = Tab
(I) = Icon
(H) = Hyperlink
(B) = Button
Typographical Conventions in Help System Paths
This course uses a “navigation path” convention to represent actions you performto find pertinent information in the Oracle Applications Help System.
The following help navigation path, for example—
(Help) General Ledger > Journals > Enter Journals
—represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the GeneralLedger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of thehelp system window.
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Overview of Inventory Management Table of Contentsviii
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 1
Overview of InventoryManagementChapter 1
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Overview of Inventory ManagementChapter 1 - Page 2
Overview of Inventory Management
Copyright Oracle Corporation, 2000. All rights reserved.®
Overview of Inventory ManagementOverview of Inventory Management
Oracle InventoryRelease 11i
Oracle InventoryRelease 11i
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Overview of Inventory ManagementChapter 1 - Page 3
Objectives
Copyright Oracle Corporation, 2000. All rights reserved.®
ObjectivesObjectives
After completing this course, you should be able todescribe how to:• Define inventory structures that correspond to
your sites• Define and maintain item numbers• Implement controls to track items in your inventory• Record movement of items within your inventory
structures• Check accuracy of on-hand quantities by
performing physical inventory and cycle counting• Perform inventory forecasting and planning
After completing this course, you should be able todescribe how to:• Define inventory structures that correspond to
your sites• Define and maintain item numbers• Implement controls to track items in your inventory• Record movement of items within your inventory
structures• Check accuracy of on-hand quantities by
performing physical inventory and cycle counting• Perform inventory forecasting and planning
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Overview of Inventory ManagementChapter 1 - Page 4
Agenda
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• Overview of Inventory Enterprise Structure• Overview of Creating and Maintaining Items• Overview of Inventory Controls• Overview of Transactions• Overview of Inventory Accuracy Controls• Overview of Inventory Planning
• Introduction to Oracle Inventory• Introduction to Oracle Inventory
AgendaAgenda
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Overview of Inventory ManagementChapter 1 - Page 5
Overview
Copyright Oracle Corporation, 2000. All rights reserved.®
OverviewOverview
Oracle Inventory enables you to satisfy yourcompany’s business needs, area such as:
– Defining part numbers– Modeling organization structures– Tracking perpetual inventory– Maintaining accurate on-hand balances– Planning material replenishments– Forecasting anticipated demand
Oracle Inventory enables you to satisfy yourcompany’s business needs, area such as:
– Defining part numbers– Modeling organization structures– Tracking perpetual inventory– Maintaining accurate on-hand balances– Planning material replenishments– Forecasting anticipated demand
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Overview of Inventory ManagementChapter 1 - Page 6
Inventory Flow Process
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Inventory Flow ProcessInventory Flow Process
Enterprise Structure
Items
ABC AnalysisInventory Controls InventoryPlanning
PhysicalInventory
CycleCountingTransactions
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Overview of Inventory ManagementChapter 1 - Page 7
Oracle Inventory Integration with ManufacturingApplications
Copyright Oracle Corporation, 2000. All rights reserved.®
Oracle Inventory Integration withManufacturing Applications
Oracle Inventory Integration withManufacturing Applications
OracleOraclePurchasingPurchasing
OracleOracleInventoryInventory
ExternalSystems
OracleOracleWIPWIP
Oracle CostOracle CostManagementManagement
OracleOracleEngineeringEngineering Oracle BillsOracle Bills
of Materialof Material
Oracle Order Oracle Order ManagementManagement Oracle MasterOracle Master
Scheduling/MRPScheduling/MRP
OracleOracleFlow ManufacturingFlow Manufacturing
OracleOracleShippingShipping
OracleOracleProjectProject
ManufacturingManufacturing
Integration of Oracle Inventory to Manufacturing ApplicationsOracle Inventory interacts with the other applications by sharing information:
• Oracle Cost Management: From cost Information to transaction rates• Oracle Work in Progress: From WIP activity and ATP supply information to
UOM, items, and on-hand quantity.• Oracle Master Scheduling/MRP: From ATP supply information to on-hand
quantity and forecasts• Oracle Bill of Materials to UOM and items• Oracle Engineering: From engineering item information to UOM and items• Oracle Order Management: From Shipping, reservations, and demand to UOM,
items, and ATP/on-hand quantity• Oracle Purchasing: From receipts/deliveries, ATP supply, and planning supply to
UOM, items, requisition, and inter-org shipments
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Overview of Inventory ManagementChapter 1 - Page 8
Integration of Oracle Inventory to FinancialApplications
Copyright Oracle Corporation, 2000. All rights reserved.®
Integration of Oracle Inventory toFinancial Applications
Integration of Oracle Inventory toFinancial Applications
OracleOracleAssetsAssets
OracleOracleReceivablesReceivables
OracleOraclePayablesPayables
OracleOracleGeneralGeneralLedgerLedger
OracleOracleInventoryInventory
ExternalSystems
Integration of Oracle Inventory to Financial ApplicationsOracle General Ledger
• From: Set of Books and Currency Exchange Rates• To: Transaction Accounting Summary or Detail
Oracle Payables• To: UOM and Items
Oracle Receivables• To: UOM and items• From: Intercompany Invoice
Oracle Assets• To: UOM and Items
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Overview of Inventory ManagementChapter 1 - Page 9
Agenda
Copyright Oracle Corporation, 2000. All rights reserved.®
• Introduction to Oracle Inventory
• Overview of Creating and Maintaining Items• Overview of Inventory Controls• Overview of Transactions• Overview of Inventory Accuracy Controls• Overview of Inventory Planning
• Overview of Inventory Enterprise Structure• Overview of Inventory Enterprise Structure
AgendaAgenda
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 10
Inventory Enterprise Structure
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Inventory Enterprise StructureInventory Enterprise Structure
• Creating organization structures in inventory• Defining a unit of measure• Creating a workday calendar
• Creating organization structures in inventory• Defining a unit of measure• Creating a workday calendar
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Overview of Inventory ManagementChapter 1 - Page 11
Inventory Organizations
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Inventory OrganizationsInventory Organizations
• Defining an organization– An organization is an inventory location with
its own set of books, costing method, workdaycalendar, and list of items.
– An organization can be a company, subsidiary,or warehouse.
• Defining an organization– An organization is an inventory location with
its own set of books, costing method, workdaycalendar, and list of items.
– An organization can be a company, subsidiary,or warehouse.
Inventory Enterprise StructureConsider the following issues when you plan your enterprise structure:
• Sets of Books: You can tie one Oracle General Ledger set of books to eachinventory organization.
• Costing Methods: You can choose your costing method (Standard or Average)only at the organizational level. Costing organization is determined by the itemattribute control level.
• Item Costs: Oracle Inventory keeps one cost per item per inventory organization.• Movement Between Inventory Sites: You can use intransit inventory for
interorganization transfers.• Planning Method
– You can perform reorder point planning at the organization level.– You can perform min-max planning at both the organization and the
subinventory levels.– You can only perform replenishment counting at the subinventory level.
• Forecasting: Oracle Inventory forecasts item usage at the organization level only.• Accuracy Analysis
– You can perform physical inventory at both the organization and thesubinventory levels.
– You can perform ABC classifications at both the organization and thesubinventory levels.
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Overview of Inventory ManagementChapter 1 - Page 12
– You can perform cycle counting at both the organization and thesubinventory levels.
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Overview of Inventory ManagementChapter 1 - Page 13
Inventory Organizations Flow Chart
Copyright Oracle Corporation, 2000. All rights reserved.®
Inventory Organizations Flow ChartInventory Organizations Flow Chart
Organization ALocation B
Organization B
Set of Books 2
Set of Books 1
Location A
Locator Locator Locator Locator Locator
Subinventory Subinventory Subinventory Subinventory
Defining OrganizationsClassify the Organization
• Choose an organization classification to describe the general purpose of yourorganization.
• Examples of organization classifications are inventory organization, legalcompany, and HR organization.
• Choose inventory organization as your organization classification to use yourorganization for inventory management.
Set of Books• Tie each organization to an operating unit, which is associated to a legal entity
and a general ledger set of books.Inventory Parameters
• Use the Organization Parameters window to complete your organizationdefinition for inventory purposes.
• Define receiving parameters if you receive items on purchase orders, internalorders, and intransit interorganization shipments.
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Overview of Inventory ManagementChapter 1 - Page 14
Oracle Organization
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Oracle OrganizationOracle Organization
Legal Entity
Operating Unit
InventoryOrganizations
Vision Ops
Vision Ops
M2M1D2
V1 V1Vision Ops
Setof
Books
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 15
Unit of Measure
Copyright Oracle Corporation, 2000. All rights reserved.®
Unit of MeasureUnit of Measure
Defining a unit of measure:• A unit of measure (UOM) is a term that you must
use, along with a numeric value, to specify thequantity of an item. For example, “each” is a unitof measure that you would use to specify thenumber of units of an item.
• Defining a unit of measure class:• A unit of measure class is a group of units of
measure with similar characteristics. For example,“weight” can be a unit of measure class with unitsof measure such as kilogram, gram, pound, andounce.
Defining a unit of measure:• A unit of measure (UOM) is a term that you must
use, along with a numeric value, to specify thequantity of an item. For example, “each” is a unitof measure that you would use to specify thenumber of units of an item.
• Defining a unit of measure class:• A unit of measure class is a group of units of
measure with similar characteristics. For example,“weight” can be a unit of measure class with unitsof measure such as kilogram, gram, pound, andounce.
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Overview of Inventory ManagementChapter 1 - Page 16
Unit of Measure
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Unit of MeasureUnit of Measure
Defining a unit of measure conversion:• A unit of measure conversion is a mathematical
relationship between two different units ofmeasure. For example, 16 ounces = 1 pound, or 2.2pounds = 1 kilogram.
Defining a unit of measure conversion:• A unit of measure conversion is a mathematical
relationship between two different units ofmeasure. For example, 16 ounces = 1 pound, or 2.2pounds = 1 kilogram.
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Overview of Inventory ManagementChapter 1 - Page 17
Organization Calendar
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Organization CalendarOrganization Calendar
• If you perform inventory forecasting, reorder-pointplanning, available-to-promise analysis, or cyclecounting, you must define your workday calendar.
• Oracle Inventory automatically generates aworkday pattern (the base calendar) that includesall days, including non-workdays, between thestart and end dates you specify.
• You can assign workday exceptions to the basecalendar to denote holidays, scheduledmaintenance, or overtime.
• If you perform inventory forecasting, reorder-pointplanning, available-to-promise analysis, or cyclecounting, you must define your workday calendar.
• Oracle Inventory automatically generates aworkday pattern (the base calendar) that includesall days, including non-workdays, between thestart and end dates you specify.
• You can assign workday exceptions to the basecalendar to denote holidays, scheduledmaintenance, or overtime.
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Overview of Inventory ManagementChapter 1 - Page 18
Review Question
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Review QuestionReview Question
To define an inventory structure, you need to set up1. Organization only2. Organization and UOM3. UOM and workday calendar4. Organization, UOM, and workday calendar5. None of the above
To define an inventory structure, you need to set up1. Organization only2. Organization and UOM3. UOM and workday calendar4. Organization, UOM, and workday calendar5. None of the above
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Overview of Inventory ManagementChapter 1 - Page 19
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
To define an inventory structure, you need to set up1. Organization only2. Organization and UOM3. UOM and workday calendar4.5. None of the above
To define an inventory structure, you need to set up1. Organization only2. Organization and UOM3. UOM and workday calendar4.5. None of the above4. Organization, UOM, and workday calendar4. Organization, UOM, and workday calendar
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Overview of Inventory ManagementChapter 1 - Page 20
Agenda
Copyright Oracle Corporation, 2000. All rights reserved.®
• Introduction to Oracle Inventory• Overview of Inventory Enterprise Structure
• Overview of Inventory Controls• Overview of Transactions• Overview of Inventory Accuracy Controls• Overview of Inventory Planning
• Overview of Creating and Maintaining Items• Overview of Creating and Maintaining Items
AgendaAgenda
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Overview of Inventory ManagementChapter 1 - Page 21
Creating and Maintaining Items
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Creating and Maintaining ItemsCreating and Maintaining Items
• Defining item statuses and attributes• Defining items• Defining categories and category sets
• Defining item statuses and attributes• Defining items• Defining categories and category sets
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Overview of Inventory ManagementChapter 1 - Page 22
Item Statuses and Attributes
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Item Statuses and AttributesItem Statuses and Attributes
• Status attributes are item attributes that enablekey functionality for each item.
• An item status is defined by selecting the valuecheck boxes for the status attributes.
• Both status attributes and item status can becontrolled at the item level or organization levels.
• Status attributes are item attributes that enablekey functionality for each item.
• An item status is defined by selecting the valuecheck boxes for the status attributes.
• Both status attributes and item status can becontrolled at the item level or organization levels.
Status Attribute Functional Area Functionality
Stockable Oracle Inventory You can stock the item Transactable Inventory, Order Entry, You can transact the item
Purchasing, Work in Process in Inventory, OE,Purchasing, or WIP
Purchasable Oracle Purchasing You can place the item on a PO Build in WIP Oracle Work in Process You can build the item on a
discrete job or a repetitive schedule
Customer OrdersEnabled Oracle Order Management You can place the item on a
sales orderInternal Orders Enabled Inventory, Order Entry, You can create an internal Purchasing sales order for the item BOM Allowed Oracle Bills of Material You can create a bill of material
for the item Invoice Enabled Oracle Revenue Accounting You can create an invoice for
the item
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 23
Item Statuses and Attributes
Copyright Oracle Corporation, 2000. All rights reserved.®
Item Statuses and AttributesItem Statuses and Attributes
By giving an item status, you can control keyfunctionality of an item.By giving an item status, you can control keyfunctionality of an item.
Build in WIP = Yes
Customer OrdersEnabled = Yes
Status AttributesStatus Attributes
Item StatusItem Status
Active
BOM Allowed = Yes
Internal OrdersEnabled = Yes
Invoice Enabled =Yes
Transactable = Yes
Purchasable = Yes
Stockable = Yes
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 24
Status Attributes
Copyright Oracle Corporation, 2000. All rights reserved.®
Status AttributesStatus Attributes
Master-Level Control• An attribute that you maintain at the master level
has identical values for an item in all organizationsthat use it.
Organization-Level Control• An attribute that you maintain at the organization
level may have different values for an item in eachorganization that uses it.
Master-Level Control• An attribute that you maintain at the master level
has identical values for an item in all organizationsthat use it.
Organization-Level Control• An attribute that you maintain at the organization
level may have different values for an item in eachorganization that uses it.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 25
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
Status attributes cannot be controlled at the itemlevel or organization levels.1. True2. False
Status attributes cannot be controlled at the itemlevel or organization levels.1. True2. False
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 26
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
Status attributes cannot be controlled at the itemlevel or organization levels.1. True2.
Status attributes cannot be controlled at the itemlevel or organization levels.1. True2.2. FalseFalse
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 27
Defining Items
Copyright Oracle Corporation, 2000. All rights reserved.®
Defining ItemsDefining Items
An item is a part or service that you purchase, sell,plan, manufacture, stock, distribute, or prototype. Thefollowing Oracle Applications use items:
An item is a part or service that you purchase, sell,plan, manufacture, stock, distribute, or prototype. Thefollowing Oracle Applications use items:
Items
Lead Time
Attributes
Inventory
Attributes
Invoicing
Attributes
MRP/MPS
Attributes
Costing
Attributes
Bills of Material
Attributes
Order Management
Attributes
Purchasing
Attributes
Planning
Attributes
Physical
Attributes
Work in Process
Attributes
Receiving
Attributes
Service
Attributes
Main
Attributes
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 28
Defining Items
Copyright Oracle Corporation, 2000. All rights reserved.®
Defining ItemsDefining Items
Choose Item Attribute Control Levels
DefineStatusControlLevels
DefineStatuses
DefineCategory
Sets
1
DefineDefault
CategorySets
DefineUOMs
DefineCategories
CreateTemplates
DefineCatalogs
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 29
Defining Items
Copyright Oracle Corporation, 2000. All rights reserved.®
Defining ItemsDefining Items
Copy items
Enter attribute values
Enable in child organizations
Update organization level attributes
Define item costs
Copy templates
1
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 30
Creating Item Templates
Copyright Oracle Corporation, 2000. All rights reserved.®
Creating Item TemplatesCreating Item Templates
• If you regularly define many items that share thesame values for a number of attributes, you maywant to define item templates to avoid duplicatingeffort.
• An item template contains values for any numberof item attributes. Oracle Inventory has severalpredefined templates that you can use to defineand update items. Use your own terminology todefine templates.
• If you regularly define many items that share thesame values for a number of attributes, you maywant to define item templates to avoid duplicatingeffort.
• An item template contains values for any numberof item attributes. Oracle Inventory has severalpredefined templates that you can use to defineand update items. Use your own terminology todefine templates.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 31
Enabling Attributes in a Template
Copyright Oracle Corporation, 2000. All rights reserved.®
Enabling Attributes in a TemplateEnabling Attributes in a Template
• You can enable attributes and assign them valuesin each template that you create.
• When you apply a template to an item, OracleInventory updates only the attributes that areenabled for the template.
• You can define templates with relatively fewattributes enabled because you can apply morethan one template to define one item.
• You can enable attributes and assign them valuesin each template that you create.
• When you apply a template to an item, OracleInventory updates only the attributes that areenabled for the template.
• You can define templates with relatively fewattributes enabled because you can apply morethan one template to define one item.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 32
Defining Item Relationships
Copyright Oracle Corporation, 2000. All rights reserved.®
Defining Item RelationshipsDefining Item Relationships
• You can specify the following types ofrelationships for items:– Item cross-references– Substitute items– Related items– Manufacturer part numbers– Customer item numbers
• You can define relationships between items toimprove purchasing management and itemsearching capabilities. You can receive substituteitems in Oracle Purchasing.
• You can specify the following types ofrelationships for items:– Item cross-references– Substitute items– Related items– Manufacturer part numbers– Customer item numbers
• You can define relationships between items toimprove purchasing management and itemsearching capabilities. You can receive substituteitems in Oracle Purchasing.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 33
Defining Items in Item Master
Copyright Oracle Corporation, 2000. All rights reserved.®
Defining Items in Item MasterDefining Items in Item Master
• Always define items in the master item. Oracleautomatically changes your current organizationto the master organization.
• Enable your item in as many child organizationsas you want.
• Always define items in the master item. Oracleautomatically changes your current organizationto the master organization.
• Enable your item in as many child organizationsas you want.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 34
Organization Assignment and Organization Item
Copyright Oracle Corporation, 2000. All rights reserved.®
Organization Assignment andOrganization Item
Organization Assignment andOrganization Item
• You can enable your item in all child organizationsunder your master organization or choose childorganizations where you use the item.
• Oracle Inventory propagates your item to allorganizations in which you want to define it.
• You can use the master item in each organizationto enter or change organization-level attributevalues for items enabled in the organization. Forexample, go to an organization to choose reorderpoint planning for an item, and then go to anotherorganization and choose Min-Max planning for thesame item.
• You can enable your item in all child organizationsunder your master organization or choose childorganizations where you use the item.
• Oracle Inventory propagates your item to allorganizations in which you want to define it.
• You can use the master item in each organizationto enter or change organization-level attributevalues for items enabled in the organization. Forexample, go to an organization to choose reorderpoint planning for an item, and then go to anotherorganization and choose Min-Max planning for thesame item.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 35
Deletion Constraints and Deletion Groups
Copyright Oracle Corporation, 2000. All rights reserved.®
Deletion Constraints and Deletion GroupsDeletion Constraints and Deletion Groups
• If you want to enforce specific business rules andadd custom checks before Oracle Inventoryallows deletion of an item, you must define itemdeletion constraints to supplement the standardpredefined item deletion conditions.
• You can delete items that have incorrect attributeinformation. For example, if you make a mistake inentering an item number, use the Deletion Groupswindow to delete the item.
• If you decide to purge the item immediately afterincorrectly defining it and before using itanywhere in the system, you will be able to deleteit.
• If you want to enforce specific business rules andadd custom checks before Oracle Inventoryallows deletion of an item, you must define itemdeletion constraints to supplement the standardpredefined item deletion conditions.
• You can delete items that have incorrect attributeinformation. For example, if you make a mistake inentering an item number, use the Deletion Groupswindow to delete the item.
• If you decide to purge the item immediately afterincorrectly defining it and before using itanywhere in the system, you will be able to deleteit.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 36
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
When you apply a template to an item, OracleInventory updates only the attributes that areenabled for the template.1. True2. False
When you apply a template to an item, OracleInventory updates only the attributes that areenabled for the template.1. True2. False
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 37
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
When you apply a template to an item, OracleInventory updates only the attributes that areenabled for the template.1.2. False
When you apply a template to an item, OracleInventory updates only the attributes that areenabled for the template.1.2. False1. True
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 38
Categories and Category Sets
Copyright Oracle Corporation, 2000. All rights reserved.®
Categories and Category SetsCategories and Category Sets
Category Grouping SchemesCategory Grouping Schemes
Finished GoodFinished Good
InventoryCategory SetInventoryCategory Set
SubassemblySubassembly
HardwareHardware
PurchasingCategory Set
PurchasingCategory Set
SoftwareSoftware
PCPC
CraigCategory Set
CraigCategory Set
OtherOther
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 39
Categories and Category Sets
Copyright Oracle Corporation, 2000. All rights reserved.®
Categories and Category SetsCategories and Category Sets
• Categories are logical groupings of items thathave similar characteristics.
• A category set is a distinct category groupingscheme and consists of categories.
• Categories are logical groupings of items thathave similar characteristics.
• A category set is a distinct category groupingscheme and consists of categories.
Defining the Item Categories FlexfieldEach category grouping scheme can use different terminology for its categories, as wellas different naming structures based on number of segments.You can define multiple structures for your Item Categories flexfield. You canconfigure each flexfield structure by using as many segments and any level of value setvalidation that you need.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 40
Uses of Categories in Oracle Inventory
Copyright Oracle Corporation, 2000. All rights reserved.®
Uses of Categories in Oracle InventoryUses of Categories in Oracle Inventory
• Inventory Items: You can use categories to groupinventory items.
• Item Category Group: For each item categorygroup, you can enter a list of recommendedcategories to use for items in that catalog group.
• Summarizing Demand Histories: You cansummarize demand history for a particularcategory of items.
• Loading Forecasts: You can compile a statisticalor focus forecast for a particular category of items.
• Inventory Items: You can use categories to groupinventory items.
• Item Category Group: For each item categorygroup, you can enter a list of recommendedcategories to use for items in that catalog group.
• Summarizing Demand Histories: You cansummarize demand history for a particularcategory of items.
• Loading Forecasts: You can compile a statisticalor focus forecast for a particular category of items.
NoteYou can also perform min-max planning or reorder point planning for a particularcategory of items.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 41
Defining Category Sets
Copyright Oracle Corporation, 2000. All rights reserved.®
Defining Category SetsDefining Category Sets
Personalized Lists of Items• You can define categories and category sets to
create personalized lists of items to limit theranges of items appearing on reports orprocesses.
• This now enables planners to submit any reportjust for items under their responsibility.
Personalized Lists of Items• You can define categories and category sets to
create personalized lists of items to limit theranges of items appearing on reports orprocesses.
• This now enables planners to submit any reportjust for items under their responsibility.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 42
Assigning Multiple Categories
Copyright Oracle Corporation, 2000. All rights reserved.®
Assigning Multiple CategoriesAssigning Multiple Categories
• You can choose one category for each additionalcategory set that you want to associate with theitem.
• If you assign an item or organization-levelcategory set in the item master (for example, in theMaster Item window), Oracle Inventory does notpropagate that category set to the childorganizations, unless it is a default category set.
• You can choose one category for each additionalcategory set that you want to associate with theitem.
• If you assign an item or organization-levelcategory set in the item master (for example, in theMaster Item window), Oracle Inventory does notpropagate that category set to the childorganizations, unless it is a default category set.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 43
Agenda
Copyright Oracle Corporation, 2000. All rights reserved.®
• Introduction to Oracle Inventory• Overview of Inventory Enterprise Structure• Overview of Creating and Maintaining Items
• Overview of Transactions• Overview of Inventory Accuracy Controls• Overview of Inventory Planning
• Overview of Inventory Controls• Overview of Inventory Controls
AgendaAgenda
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 44
Inventory Controls
Copyright Oracle Corporation, 2000. All rights reserved.®
Inventory ControlsInventory Controls
• Defining locator control• Defining revision control• Defining lot control• Defining serial number control• Defining serial genealogy
• Defining locator control• Defining revision control• Defining lot control• Defining serial number control• Defining serial genealogy
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 45
Overview
Copyright Oracle Corporation, 2000. All rights reserved.®
OverviewOverview
• With Oracle Inventory you can implement locator,revision, lot, and serial number control.
• Flexible Controls– You can implement any combination of the
four controls (locator, revision, lot, and serialnumber) for each item.
– Inventory controls are optional for all items.You can choose to implement inventorycontrols for specific items.
• With Oracle Inventory you can implement locator,revision, lot, and serial number control.
• Flexible Controls– You can implement any combination of the
four controls (locator, revision, lot, and serialnumber) for each item.
– Inventory controls are optional for all items.You can choose to implement inventorycontrols for specific items.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 46
Locator Control
Copyright Oracle Corporation, 2000. All rights reserved.®
Locator ControlLocator Control
Item with locator controlItem with locator controlin this subinventoryin this subinventory
Locator
Subinventory
Item without locator controlItem without locator controlin this subinventoryin this subinventory
Subinventory
OrganizationOrganization
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 47
Locator Control
Copyright Oracle Corporation, 2000. All rights reserved.®
Locator ControlLocator Control
• Locators are structures within subinventories.• Locators are the third level in the enterprise
structuring scheme of Oracle Inventory .• Locators may represent rows, aisles, or bins in
warehouses. You can receive items directly intoand ship items directly from locators.
• Locators are structures within subinventories.• Locators are the third level in the enterprise
structuring scheme of Oracle Inventory .• Locators may represent rows, aisles, or bins in
warehouses. You can receive items directly intoand ship items directly from locators.
Locator StructuringYou can structure your Oracle Inventory installation so that some of the subinventoriesand items have locator control while others do not. Each locator you define mustbelong to a subinventory. Each subinventory can have multiple locators.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 48
Revision Quality Control
Copyright Oracle Corporation, 2000. All rights reserved.®
Revision Quality ControlRevision Quality Control
Revision ARevision ARevision A Revision BRevision B
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 49
Revision Quality Control
Copyright Oracle Corporation, 2000. All rights reserved.®
Revision Quality ControlRevision Quality Control
• A revision is a particular version of an item, bill ofmaterial, or routing. By using the revision quantitycontrol option you can track item quantities byitem revision. To do so you must specify arevision for each material transaction.
• You can enable revision quantity control for itemsfor which you must track version changes orchanges that are significant enough to track butare not affecting the function and feature of theitem and therefore do not require an item change.
• A revision is a particular version of an item, bill ofmaterial, or routing. By using the revision quantitycontrol option you can track item quantities byitem revision. To do so you must specify arevision for each material transaction.
• You can enable revision quantity control for itemsfor which you must track version changes orchanges that are significant enough to track butare not affecting the function and feature of theitem and therefore do not require an item change.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 50
Lot Control
Copyright Oracle Corporation, 2000. All rights reserved.®
Lot ControlLot Control
Lot#032698
• A lot is a specific batch of an item that you receiveand store in your organization.
• Lot control is a technique for enforcing the use oflot numbers during material transactions, thusenabling the tracking of batches of itemsthroughout their movement in and out ofinventory.
• A lot is a specific batch of an item that you receiveand store in your organization.
• Lot control is a technique for enforcing the use oflot numbers during material transactions, thusenabling the tracking of batches of itemsthroughout their movement in and out ofinventory.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 51
Serial Number Control
Copyright Oracle Corporation, 2000. All rights reserved.®
Serial Number ControlSerial Number Control
SN#0101549
• A serial number is an alphanumeric piece ofinformation that you assign to an individual unit ofan item. A serialized unit is a combination of anitem and a serial number.
• You can track individual units of items by usingserial numbers. Serial number control is a systemtechnique for enforcing the use of serial numbersduring a material transaction. You can use serialnumbers to track items over which you want tomaintain very tight control.
• A serial number is an alphanumeric piece ofinformation that you assign to an individual unit ofan item. A serialized unit is a combination of anitem and a serial number.
• You can track individual units of items by usingserial numbers. Serial number control is a systemtechnique for enforcing the use of serial numbersduring a material transaction. You can use serialnumbers to track items over which you want tomaintain very tight control.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 52
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
Which of the following sentences describes “Lot”properly?1. An alphanumeric piece of information that youassign to an individual unit of an item.2. A specific batch of an item that you receive andstore in your organization.3. A particular version of an item, bill of material, orrouting.4. None of the above.
Which of the following sentences describes “Lot”properly?1. An alphanumeric piece of information that youassign to an individual unit of an item.2. A specific batch of an item that you receive andstore in your organization.3. A particular version of an item, bill of material, orrouting.4. None of the above.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 53
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
Which of the following sentences describes “Lot”properly?1. An alphanumeric piece of information that youassign to an individual unit of an item.2.
3. A particular version of an item, bill of material, orrouting.4. None of the above.
Which of the following sentences describes “Lot”properly?1. An alphanumeric piece of information that youassign to an individual unit of an item.2.
3. A particular version of an item, bill of material, orrouting.4. None of the above.
2. A specific batch of an item that you receive andstore in your organization.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 54
Serial Genealogy
Copyright Oracle Corporation, 2000. All rights reserved.®
Serial GenealogySerial Genealogy
Using serial genealogy enables you to:• Easily trace from end item to all components• Trace from component to final assembly• Isolate the compromised assemblies after finding
a defect with components• Isolate source of defects by tracing from problem
assembly to components
Using serial genealogy enables you to:• Easily trace from end item to all components• Trace from component to final assembly• Isolate the compromised assemblies after finding
a defect with components• Isolate source of defects by tracing from problem
assembly to components
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 55
Tracked Transactions
Copyright Oracle Corporation, 2000. All rights reserved.®
Tracked TransactionsTracked Transactions
ManufactureManufacture
ShippingShipping
InventoryInventoryInventoryInventory
P.O. P.O. receiptreceipt
Associate component Associate component and assembly serial numbersand assembly serial numbers
Component and assembly serial numbers may beassociated with each other at WIP issue, operationcompletion, or assembly completion.
Component and assembly serial numbers may beassociated with each other at WIP issue, operationcompletion, or assembly completion.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 56
Serial Genealogy Example
Copyright Oracle Corporation, 2000. All rights reserved.®
Serial Genealogy ExampleSerial Genealogy Example
Serial number Serial number CD6541CD6541
Serial Serial number number EF2165EF2165
Serial Serial numbernumberAS1234AS1234
Serial numberSerial numberXY654XY654
Serial numberSerial numberAS1234AS1234
Serial numberSerial numberZZ321ZZ321
Serial numberSerial numberJK9874JK9874
C
hild
Gen
ealo
gy
Chi
ld G
enea
logy
Parent Genealogy
Parent Genealogy
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 57
Agenda
Copyright Oracle Corporation, 2000. All rights reserved.®
• Introduction to Oracle Inventory• Overview of Inventory Enterprise Structure• Overview of Creating and Maintaining Items• Overview of Inventory Controls
• Overview of Inventory Accuracy Controls• Overview of Inventory Planning
• Overview of Transactions• Overview of Transactions
AgendaAgenda
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 58
Inventory Transactions
Copyright Oracle Corporation, 2000. All rights reserved.®
Inventory TransactionsInventory Transactions
• Customizing and processing transactions• Performing miscellaneous inventory transactions• Move orders• Shortage alerts and shortage notifications• Movement statistics
• Customizing and processing transactions• Performing miscellaneous inventory transactions• Move orders• Shortage alerts and shortage notifications• Movement statistics
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 59
Overview of Inventory Transactions
Copyright Oracle Corporation, 2000. All rights reserved.®
Overview of Inventory TransactionsOverview of Inventory Transactions
Material FlowMaterial Flow Business FlowBusiness Flow
Receive GoodsReceive Goods
Ship GoodsShip Goods
Move GoodsMove Goods
MRPMRP Order EntryOrder Entry
PurchasingPurchasing
InventoryInventory
WIPWIP
Transaction• A transaction is an item movement into, within, or out of inventory.• A transaction changes the quantity, location, or cost of an item.• Oracle Inventory supports a number of predefined and user-defined transaction
types.• Every material movement has a corresponding set of accounting transactions that
Oracle Inventory automatically generates.• All transactions validate the various controls (revision, locator, lot number, and
serial number) you enable for your items.• You can choose your own transaction processing methods to use available
computing resources most effectively.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 60
Defining Transaction Source Types
Copyright Oracle Corporation, 2000. All rights reserved.®
Defining Transaction Source TypesDefining Transaction Source Types
A transaction source type and transaction actionmake up a transaction type.A transaction source type and transaction actionmake up a transaction type.
Transaction
Source Type
TransactionType
Transaction
Action
Transaction Source TypesYou can add user-defined transaction types to the list of predefined transaction types.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 61
Customizing Transaction Entry
Copyright Oracle Corporation, 2000. All rights reserved.®
Customizing Transaction EntryCustomizing Transaction Entry
• Define a new transaction source type• Use the new transaction source type and a
transaction action to define a new transaction typeReasons to Customize Transactions• Flexibility to use your own terminology to name
common transactions• Unlimited number of transactions to use for
recording material movement• Ability to record and review material movement
using customized transaction names and sourcetypes
• Define a new transaction source type• Use the new transaction source type and a
transaction action to define a new transaction typeReasons to Customize Transactions• Flexibility to use your own terminology to name
common transactions• Unlimited number of transactions to use for
recording material movement• Ability to record and review material movement
using customized transaction names and sourcetypes
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 62
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
A transaction is an item movement into, within, or outof inventory.1. True2. False
A transaction is an item movement into, within, or outof inventory.1. True2. False
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 63
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
A transaction is an item movement into, within, or outof inventory.1.2. False
A transaction is an item movement into, within, or outof inventory.1.2. False1. True1. True
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 64
Performing Miscellaneous Inventory Transactions
Copyright Oracle Corporation, 2000. All rights reserved.®
Performing Miscellaneous InventoryTransactions
Performing Miscellaneous InventoryTransactions
OrganizationOrganization
SubinventorySubinventoryTransferTransfer
SubinventoryLocator
Locator
SubinventoryTransfer
SubinventoryLocator
Locator
MiscellaneousMiscellaneousReceiptReceipt
MiscellaneousMiscellaneousIssueIssue
Organization
DirectDirectInterorganizationInterorganizationTransferTransfer
InterorganizationInterorganizationTransfer by WayTransfer by Way
of intransitof intransit
OrganizationOrganization
SubinventorySubinventoryTransferTransfer
SubinventoryLocator
Locator
SubinventoryTransfer
SubinventoryLocator
Locator
You Can Perform the Following Oracle Inventory Transactions• Receive items into your organization from a general ledger account number• Issue items from your organization to a general ledger account number• Transfer items from a subinventory in your organization to another subinventory
in the same organization• Transfer items directly between organizations• Transfer items between organizations by way of intransit• Reserve items for a specific account or temporarily prevent the release of items
onto the shop floor
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 65
Transferring Between Organizations
Copyright Oracle Corporation, 2000. All rights reserved.®
Transferring Between OrganizationsTransferring Between Organizations
You can define shipping networks before enteringinterorganization transfers.You can define shipping networks before enteringinterorganization transfers.
LondonOrganization
SingaporeOrganization
SacramentoOrganization
New YorkOrganization
Use IntransitUse IntransitInventoryInventory
(FOB = Receiving)(FOB = Receiving)
AustinOrganization
RequireRequireInternal OrderInternal Order
to Shipto Ship
Use IntransitUse IntransitInventoryInventory(FOB = Shipping)(FOB = Shipping)
DirectDirectTransferTransfer
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 66
Inventory Transactions Without Documents andRequisitions
Copyright Oracle Corporation, 2000. All rights reserved.®
Inventory Transactions WithoutDocuments and Requisitions
Inventory Transactions WithoutDocuments and Requisitions
WarehousesWarehousesM1Seattle
D1Singapore
M3 Dallas(Ave Cost)
FGI Stores
Subinv Subinv transfertransfer
Subinv Subinv transfertransfer
Direct Direct org transferorg transfer
Intransit
Misc IssueMisc Issue
Misc ReceiptMisc Receipt
Intransit orgIntransit orgtransfer shipmenttransfer shipment
Intransit Intransit org transfer org transfer
receiptreceipt
SubinventoriesSubinventories
Row 1, Rack 1, Bin 1Row 1, Rack 1, Bin 1Row 1, Rack 1, Bin 2Row 1, Rack 1, Bin 2Row 1, Rack 2, Bin 1 ...Row 1, Rack 2, Bin 1 ...
LocatorsLocators
Moving InventoryInventory organization transfers may be accomplished without using an internalrequisition/internal sales order.
• You can use miscellaneous receipts to receive material without a purchase ordernumber.
• Use miscellaneous issues to receive material without approvals or a documentnumber.
• Use subinventory transfers to transfer the location of material without adocument number.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 67
Inventory Transactions With Documents andRequisitions
Copyright Oracle Corporation, 2000. All rights reserved.®
Inventory Transactions WithDocuments and RequisitionsInventory Transactions WithDocuments and Requisitions
Row 1, Rack 1, Bin 1Row 1, Rack 1, Bin 1Row 1, Rack 1, Bin 2Row 1, Rack 1, Bin 2Row 1, Rack 2, Bin 1 ...Row 1, Rack 2, Bin 1 ...
WarehousesWarehousesM1Seattle
D1Singapore
M3Dallas
FGI Stores
Move order:Move order:subinv transfersubinv transfer
Move order:Move order:subinv transfersubinv transfer
InternalInternal SO ship SO ship confirmconfirmIntransit
Move order:Move order:account transferaccount transfer
PO receiptPO receipt
Internal SOInternal SOship confirmship confirm
Internal Internal PO receiptPO receipt
LocatorsLocators
SubinventoriesSubinventories
Moving Inventory (continued)You can use internal requisitions and internal sales orders as an approval mechanismand to provide a document to track when you transport material between warehouses ortransfer material across inventory organizations.Use miscellaneous receipts to receive material without a purchase order number.
• Use move orders with an Account Transfer transaction type to approve atransaction and to provide a document to track the issue of the material.Previously, sales orders with approvals in the order cycle were used to issue thematerial and track the movement.
• Use move orders with a Subinventory Transfer transaction type to approve atransfer and to provide a document to track the transfer of the material.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 68
Move Orders
Copyright Oracle Corporation, 2000. All rights reserved.®
Move OrdersMove Orders
• A move order is a request for a subinventorytransfer or account issue (also called an accounttransfer). When using an account transfer, theactual movement is an issue, not a transfer fromsubinventory to subinventory.
• Using move orders, you can manage all materialrequisitions and request processes within anorganization by manually or automaticallycreating, approving, and transacting a move order.
• A move order is a request for a subinventorytransfer or account issue (also called an accounttransfer). When using an account transfer, theactual movement is an issue, not a transfer fromsubinventory to subinventory.
• Using move orders, you can manage all materialrequisitions and request processes within anorganization by manually or automaticallycreating, approving, and transacting a move order.
OverviewPreviously, these transactions have been one-step occurrences, and there has been noway to plan these intraorganization material movements. Move orders allow plannersand facility managers to request the movement of material within the four walls of awarehouse or facility for replenishment, material storage relocations, quality handlingor other purposes.Individual users can request move orders, and Oracle Inventory automatically createsmove orders when warranted for inventory replenishment and order picking.This lesson covers the basic types of move orders, their uses, and the benefits ofmanaging inventory movement by using move orders.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 69
Move Orders
Copyright Oracle Corporation, 2000. All rights reserved.®
Move OrdersMove Orders
Managed Material Flow• Oracle Inventory uses move orders to distinguish
the user roles that should manage inventory levelsfrom those who carry out actual transactions. Thisprovides:
• Faster response– Warehouse visibility– Tracking
Managed Material Flow• Oracle Inventory uses move orders to distinguish
the user roles that should manage inventory levelsfrom those who carry out actual transactions. Thisprovides:
• Faster response– Warehouse visibility– Tracking
Managed Material FlowOracle Inventory uses move orders to distinguish the user roles that should manageinventory levels from those who carry out actual transactions. This provides:Faster Response: You can now request a transaction and forward the request on to apicker for actual transaction execution. The request is tracked in Oracle Inventory toavoid manual systems that can result in inaccurate information transfer. Whenwarranted, replenishment mechanisms can automatically generate move orders withoutthe intervention of an item planner for simple cases where the material is drawn fromwithin the facility. This results in faster inventory replenishment with minimal humanintervention.Warehouse Visibility: Move orders use inventory picking rules to determine where tosource material for a subinventory or account transfer. This ensures that the samemechanisms created to rotate material properly for deliveries can be used to rotatematerial within the facility. It also uses the material visibility in Oracle’s Inventory tosuggest source locations, lots, and so on automatically.Tracking: Move orders can be transacted through Application Program Interface. APIsallow you to use mobile devices to transact, giving you better material visibility andaccuracy. Move orders can also be created to cross-dock material to staging locations.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 70
Move Order Source Types
Copyright Oracle Corporation, 2000. All rights reserved.®
Move Order Source TypesMove Order Source Types
Move OrderRequisition
• Account Transfer• Subinventory Transfer
• Manually Generated• Optional Approval• Processing
ReplenishmentMove Orders
• Kanban• Min Max• Replenishment Count
• Automatically Generated• Preapproved• Ready for Transaction
Pick Wave Move Orders
Subinventory Transfer
• Automatically Generated• Preapproved• Ready for Transaction
Source TypesOracle Inventory provides two types of move orders. The move order type refers to theentity that created the move order. For all move orders, the final result is one of the twosupported transactions: subinventory or account transfer.Move Order Requisition: The requisition is a manually generated request for a moveorder. You must create a move order requisition. You can generate requests forsubinventory transfers or account transfers. The requisition can optionally go throughan Oracle Workflow approval process before it becomes a move order. If no approvalprocess is used, the requisition becomes a move order immediately.Replenishment Move Order: These move orders are generated by Kanban cards wherethe pull sequence calls for a subinventory transfer (intraorganization kanbans), or bymin-max planned items where the item’s replenishment source (set at the item-subinventory level) is another subinventory. In this case, the min max or replenishmentcount report automatically generates a move order. Replenishment move orders arepreapproved and ready to be transacted.Pick Wave Move Orders: The pick release process generates move orders to bring thematerial from its source location in stores to a staging location, which you define as asubinventory in Oracle Inventory. This transaction is a subinventory transfer.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 71
Move Orders Process Flow
Copyright Oracle Corporation, 2000. All rights reserved.®
Move Orders Process FlowMove Orders Process Flow
PickingPickingSourceSourcelocationlocation
Destinationlocation
Put awayPut away
PickPickTicketTicket
Move order locatesMove order locatesmaterial sourcesmaterial sources
In case of shortageIn case of shortagemove ordermove order
can be re-plannedcan be re-planned
Move orderMove orderrequisitionrequisition
createdcreated
ApproveApprovemovemoveorderorder
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 72
Shortage Alerts and Shortage Notifications
Copyright Oracle Corporation, 2000. All rights reserved.®
Shortage Alerts and ShortageNotifications
Shortage Alerts and ShortageNotifications
• Shortage Messages: Alerting or notifyingindividuals that material needed elsewhere in theorganization is newly available.
• Shortage messages may alert the user to a crossdocking opportunity.
• Shortage Messages: Alerting or notifyingindividuals that material needed elsewhere in theorganization is newly available.
• Shortage messages may alert the user to a crossdocking opportunity.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 73
Shortage Alerts and Shortage Notifications Example
Copyright Oracle Corporation, 2000. All rights reserved.®
Shortage Alerts and ShortageNotifications Example
Shortage Alerts and ShortageNotifications Example
WaitingWaitingWIP job/WIP job/scheduleschedule
Material shortage
DirectDirectreceivingreceiving
ReceiveReceiveinto bulkinto bulkBegin POBegin PO
receiptreceipt
BulkBulk
Raw inRaw inprocessprocess
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 74
Opportunistic Cross Docking
Copyright Oracle Corporation, 2000. All rights reserved.®
Opportunistic Cross DockingOpportunistic Cross Docking
Receive
InboundStaging
Transact Pick Wave Move OrderLine
Receiveand transactPick Wave
Move OrderLine
OutboundStaging
Bulk
Putaway to Bulk InventoryCross Docking Opportunity
Backorderedsales order
Begin PO Receipt
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 75
Collecting and Reporting Movement Statistics
Copyright Oracle Corporation, 2000. All rights reserved.®
Collecting and Reporting MovementStatistics
Collecting and Reporting MovementStatistics
Follow these steps to collect and report movementstatistics:Follow these steps to collect and report movementstatistics:
1. Define movement statistics parameters
3. Link movement statistics to invoices
4. Report and review movement statistics
5. Freeze movement statistics
2. Enter movement statistics information
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 76
Agenda
Copyright Oracle Corporation, 2000. All rights reserved.®
• Introduction to Oracle Inventory• Overview of Inventory Enterprise Structure• Overview of Creating and Maintaining Items• Overview of Inventory Controls• Overview of Transactions
• Overview of Inventory Planning• Overview of Inventory Accuracy Controls• Overview of Inventory Accuracy Controls
AgendaAgenda
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 77
Inventory Accuracy Controls
Copyright Oracle Corporation, 2000. All rights reserved.®
Inventory Accuracy ControlsInventory Accuracy Controls
• Cycle counting• Physical inventory• Cycle counting• Physical inventory
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 78
Cycle Counting
Copyright Oracle Corporation, 2000. All rights reserved.®
Cycle CountingCycle Counting
• Cycle counting is the periodic counting ofindividual items throughout the year. Count itemsof higher value more frequently than items oflower value.
• Perform cycle counting instead of performingphysical inventory. You can use both techniquesto verify the accuracy of on-hand quantities andvalues.
• Cycle counting is the periodic counting ofindividual items throughout the year. Count itemsof higher value more frequently than items oflower value.
• Perform cycle counting instead of performingphysical inventory. You can use both techniquesto verify the accuracy of on-hand quantities andvalues.
InitializationInitialization is the process of identifying the items to cycle count. Initialize your cyclecount by choosing an ABC group that you define.
Automatic SchedulingAutomatic scheduling is the process of choosing the specific items to count in a timeinterval. Oracle enables you to choose how frequently you want to run the automaticscheduler. How frequently you run the automatic scheduler determines the time intervalfor which Oracle Inventory schedules items to cycle count.
Manual SchedulingManual scheduling is the process of requesting counts for any item at any time. Youcan request counts for specific subinventories, locators, and items, and you can set thecount for any date.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 79
Cycle Counting
Copyright Oracle Corporation, 2000. All rights reserved.®
Cycle CountingCycle Counting
High-Value Item to CountHigh-Value Item to Count
Low-Value Item to CountLow-Value Item to Count
Day 3 of Cycle CountDay 3 of Cycle Count
High-Value Item to CountHigh-Value Item to Count
Low-Value Item to CountLow-Value Item to Count
Day 1 of Cycle CountDay 1 of Cycle Count
High-Value Item to CountHigh-Value Item to Count
Low-Value Item to CountLow-Value Item to Count
Day 2 of Cycle CountDay 2 of Cycle Count
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 80
Cycle Counting
Copyright Oracle Corporation, 2000. All rights reserved.®
Cycle CountingCycle Counting
Define cycle count header1
Update cycle-count items2
Schedule items to count3
Generate count requests4
Enter cycle counts5
Approve cycle counts6
Uses in Oracle Inventory• You can reconcile system on-hand balances with actual counts in inventory.• You can maintain tighter control of items of higher relative value.• You can perform cycle count for the entire organization or for specific
subinventories within an organization.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 81
Cycle Counting ABC Analysis
Copyright Oracle Corporation, 2000. All rights reserved.®
Cycle CountingABC Analysis
Cycle CountingABC Analysis
Define ABC group2
Assign items to ABC classes3
Update class assignments4
Purge ABC information5
Define ABC compilation1a
Define ABC classes1b
Reasons for ABC Analysis• You can perform an ABC analysis to decide how frequently you want to count
items in each ABC class.• Typically you count items of higher value more frequently than you count items
of lower value.• The principle of ABC analysis is that effort saved through relaxed controls on
low-value items can be applied to improve control of high-value items.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 82
Cycle Counting ABC Analysis
Copyright Oracle Corporation, 2000. All rights reserved.®
Cycle CountingABC Analysis
Cycle CountingABC Analysis
MouseMouseItem CItem C
ComputerComputerItem AItem A
PrinterPrinterItem BItem B
• ABC analysis is a method of determining therelative value of items in your inventory sites.
• An ABC analysis involves ranking your itemsaccording to a criterion and then grouping itemsinto classes. ABC refers to the rankings youassign your items as a result of this analysis,where A items are more valuable than B items, andso on.
• ABC analysis is a method of determining therelative value of items in your inventory sites.
• An ABC analysis involves ranking your itemsaccording to a criterion and then grouping itemsinto classes. ABC refers to the rankings youassign your items as a result of this analysis,where A items are more valuable than B items, andso on.
ABC ClassificationABC classification is the process of assigning items to groups called ABC classes.With Oracle Inventory you can use your own terminology to define ABC classes.
ABC RankingWith Oracle Inventory you can choose one of 11 compilation criteria for performing anABC analysis. You can also maintain multiple rankings of the same set of items.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 83
Physical Inventory
Copyright Oracle Corporation, 2000. All rights reserved.®
Physical InventoryPhysical Inventory
• A physical inventory is a periodic reconciliation ofsystem on-hand balances with physical counts ininventory.
• You can perform a physical inventory wheneveryou choose to verify the accuracy of your systemon-hand quantities.
• You can perform a physical inventory for the entireorganization or for particular subinventories withinan organization.
• A physical inventory is a periodic reconciliation ofsystem on-hand balances with physical counts ininventory.
• You can perform a physical inventory wheneveryou choose to verify the accuracy of your systemon-hand quantities.
• You can perform a physical inventory for the entireorganization or for particular subinventories withinan organization.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 84
Physical Inventory
Copyright Oracle Corporation, 2000. All rights reserved.®
Physical InventoryPhysical Inventory
Define physical inventory
Take snapshot of on-hand quantities
Generate tags
Count items
Enter counts
Void tags
Approve counts
Run adjustment program
Purge physical inventory
Reasons for Performing Physical InventoriesAccurate on-hand quantities are essential for effective planning and for minimizinginventory investment. Accurate on-hand quantities are required for tax and auditpurposes.
Physical Inventory TagsA tag is a tool for recording the on-hand quantity of a specific item in a particularlocation. Usually a tag is a slip of paper posted at the item’s location. You refer to a tagby using alphanumeric notation. Oracle can automatically generate tag numbers thatyou can use to enter physical inventory counts. You can enter tag numbers that thesystem does not generate for you.
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 85
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
You cannot perform a physical inventory for theentire organization or for particular subinventorieswithin an organization.1. True2. False
You cannot perform a physical inventory for theentire organization or for particular subinventorieswithin an organization.1. True2. False
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 86
Review Question
Copyright Oracle Corporation, 2000. All rights reserved.®
Review QuestionReview Question
You cannot perform a physical inventory for theentire organization or for particular subinventorieswithin an organization.1. True2.
You cannot perform a physical inventory for theentire organization or for particular subinventorieswithin an organization.1. True2.2. False2. False
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 87
Agenda
Copyright Oracle Corporation, 2000. All rights reserved.®
• Introduction to Oracle Inventory• Overview of Inventory Enterprise Structure• Overview of Creating and Maintaining Items• Overview of Inventory Controls• Overview of Transactions• Overview of Inventory Accuracy Controls• Overview of Inventory Planning• Overview of Inventory Planning
AgendaAgenda
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Copyright © Oracle Corporation, 2000. All rights reserved.
Overview of Inventory ManagementChapter 1 - Page 88
Inventory Planning and Replenishment
Copyright Oracle Corporation, 2000. All rights reserved.®
Inventory Planning and ReplenishmentInventory Planning and Replenishment
Planning methods:• Performing reorder-point planning• Performing Min-Max planning• Subinventory replenishment planning• Creating and executing Kanban cardsReplenishment source:• Suppliers• Inventory organizations• Subinventories• Manufacturing
Planning methods:• Performing reorder-point planning• Performing Min-Max planning• Subinventory replenishment planning• Creating and executing Kanban cardsReplenishment source:• Suppliers• Inventory organizations• Subinventories• Manufacturing
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Overview of Inventory ManagementChapter 1 - Page 89
Inventory Planning and Replenishment
Copyright Oracle Corporation, 2000. All rights reserved.®
Inventory Planning and ReplenishmentInventory Planning and Replenishment
Statistical andStatistical andFocus ForecastsFocus Forecasts
WIPWIPIssuesIssues
Inter-OrgInter-OrgShipmentsShipments
Sales OrderSales OrderShipmentsShipments
MiscellaneousMiscellaneousIssuesIssues
When to Order?Typically, you should order when: On-hand quantity + supply − demand < minimuminventory level.The minimum level is a safety stock designed to be on an exception basis to meetdemand or inventory while waiting for replenishment.How Much to Order?Typically you should order a quantity that balances the cost of placing an order withthe cost of carrying inventory while covering expected demand. You then create arequisition to replenish inventory from another organization or a supplier.
Planning Methods• Reorder-point planning (organization)• Min-max planning (organization and subinventory)• Material-requirements planning: Master Production Scheduling/Master Demand
Scheduling (organization)
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Overview of Inventory ManagementChapter 1 - Page 90
Reorder-Point Planning
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Reorder-Point PlanningReorder-Point Planning
• Reorder-point planning is a method of determiningthe size and timing of item replenishment orders.
• Reorder-point planning uses the following piecesof information:– Safety stock– Replenishment lead time– Item demand– Order cost– Carrying cost
• Reorder-point planning is a method of determiningthe size and timing of item replenishment orders.
• Reorder-point planning uses the following piecesof information:– Safety stock– Replenishment lead time– Item demand– Order cost– Carrying cost
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Overview of Inventory ManagementChapter 1 - Page 91
Reorder-Point Planning
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Reorder-Point PlanningReorder-Point Planning
QuantityQuantity
TimeTime
Reorder PointReorder Point
Safety StockSafety Stock
Uses in Oracle InventoryYou can perform reorder-point planning for the entire organization. You can usereorder point planning for items under independent demand.You can specify reorder point planning as the inventory planning method when youdefine an item. You can use reorder point planning for items that you do not need tocontrol very tightly and that are not very expensive to carry in inventory.
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Overview of Inventory ManagementChapter 1 - Page 92
Min-Max Planning
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Min-Max PlanningMin-Max Planning
• Min-max planning is a method of determiningwhen and how much to order based on user-defined minimum and maximum inventory levels.
• In Oracle Inventory you can perform min-maxplanning at two levels:– Organization: To perform organization-level
min-max planning for an item, you mustspecify organization-level minimum andmaximum quantities.
– Subinventory: To perform subinventory-levelmin-max planning for an item, you mustspecify subinventory-level minimum andmaximum quantities.
• Min-max planning is a method of determiningwhen and how much to order based on user-defined minimum and maximum inventory levels.
• In Oracle Inventory you can perform min-maxplanning at two levels:– Organization: To perform organization-level
min-max planning for an item, you mustspecify organization-level minimum andmaximum quantities.
– Subinventory: To perform subinventory-levelmin-max planning for an item, you mustspecify subinventory-level minimum andmaximum quantities.
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Overview of Inventory ManagementChapter 1 - Page 93
Min-Max Planning
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Min-Max PlanningMin-Max Planning
Enter minimum quantity
Enter maximum quantity
Enter fixed lot increments
Enter minimum order quantity
Enter maximum order quantityRun min-max report
YesYes
NoNo
Do you wantspecific lot
increments?
Determine minimumand maximum
quantities
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Overview of Inventory ManagementChapter 1 - Page 94
Replenishment from Suppliers and Other InventoryOrganizations
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Replenishment from Suppliers and OtherInventory Organizations
Replenishment from Suppliers and OtherInventory Organizations
Oracle Inventory ProcessesOracle Inventory Processes
Oracle Purchasing ProcessesOracle Purchasing Processes
Run Order ImportOracle Order Entry ProcessesOracle Order Entry Processes
Min-MaxPlanning
Reorder-PointPlanning
SubinventoryReplenishment
Populate RequisitionInterface
Run Req. Import
Create PurchaseRequisition
Create PurchaseOrder
Create InternalRequisition
Create InternalOrder
Kanban
Uses in Oracle InventoryOrganization-Level Planning: You can perform min-max planning for the entireorganization.
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Overview of Inventory ManagementChapter 1 - Page 95
Kanban Management
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Kanban ManagementKanban Management
Techniques used•Define pull sequences•Calculate number of cards and Kanban size•Kanban requirements simulation•Generate nonreplenishable Kanbans•Automate transactions; generate requisitionsKanban Cards Replenish From Doc. CreatedSupplier Supplier Purchase Req.Inter-org Inventory Org Internal Req.Intra-org Subinventory Move orderProduction Manufacturing Work order/Flow schedule
Techniques used•Define pull sequences•Calculate number of cards and Kanban size•Kanban requirements simulation•Generate nonreplenishable Kanbans•Automate transactions; generate requisitionsKanban Cards Replenish From Doc. CreatedSupplier Supplier Purchase Req.Inter-org Inventory Org Internal Req.Intra-org Subinventory Move orderProduction Manufacturing Work order/Flow schedule
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Overview of Inventory ManagementChapter 1 - Page 96
Kanban Execution
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Kanban ExecutionKanban Execution
CardStatus ?
SourceType ?
Error
MaterialReceipt
SignalReplenishment(Scan Card or
ManuallySignal)
CardCreation
(Automaticor Manual)
PullSequence
SourcingRules
KanbanQuantity
Calculation
Aggregationreqd ?
Wait
Card Printing(Batch orindividual)
POCreation
InternalOrder
Creation
Work Order Creation
Move OrderCreation
Processing Kanban SignalsThe example above gives you a map of how Oracle Inventory executes the followingKanban signals:
• Request supplier Kanbans(PO)• Request inter-Org Kanbans (Internal order)• Request production Kanbans (work order)• Request intra-org Kanbans• Aggregate Kanban Signals• Replenishable and Nonreplenishable
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Overview of Inventory ManagementChapter 1 - Page 97
Summary
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SummarySummary
In this lesson, you should have learned how to:• Define inventory structures that correspond to
your sites• Define and maintain item numbers• Implement controls to track items in your inventory• Record movement of items within your inventory
structures• Check accuracy of on-hand quantities by
performing physical inventory and cycle counting• Perform inventory forecasting and planning
In this lesson, you should have learned how to:• Define inventory structures that correspond to
your sites• Define and maintain item numbers• Implement controls to track items in your inventory• Record movement of items within your inventory
structures• Check accuracy of on-hand quantities by
performing physical inventory and cycle counting• Perform inventory forecasting and planning
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Overview of Inventory ManagementChapter 1 - Page 98