Oracle Planning

8/7/2019 Oracle Planning

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Oracle Planning

Explanation and Guide


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Agenda

Current MRP Blueprint Overview of Process

MRP Workbench

How On Time Delivery is Affected

Inventory Planning Options Filter Methods (timeframe)

Sub-inventory Replenishment Min-Max

Reorder Point Planning

Demonstrate MRP Planning


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MRP

MRP is what you do to get supply to meet demand

In Oracle it is limited to a single inventory organization

MRP can be setup to run overnight and provide updates based onthe previous days production and demand changes

Material requirements planning (MRP) calculates net requirementsfrom gross requirements by evaluating: the master schedule

bills of material scheduled receipts

on-hand inventory balances

lead times

order modifiers

It then plans replenishments by creating a set of recommendations

to release or reschedule orders for material based on net materialrequirements. These planned recommendations are stated in: discrete quantities, with due dates


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The MRP Process

Planning

Forecast

Sales Order

Demand

MDS/MPS

MRP

PurchaseRequisitions

Work Orders

BOM

Inventory

WIPPurchasing
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MRP Workbench


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Inventory Workbench


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Job Workbench


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How On Time Delivery is Affected

MRP Schedules Based on Order Deliver minus Lead

Times

MRP is very Sensitive to Data Accuracy

MRP Produces an Exceptions List on every MRP Run

MRP Helps Maintain a Consistent Production Schedule

but Un-forecasted Demand can Effect OTD


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Planning without MRP

Other Planning Options


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Other Planning Processes

Min/Max Planning

Reorder Point Planning Kanban Replenishment

Beyond MRP

Advanced Supply Chain Planning


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Min/Max Planning

With min-max planning, you specify minimum and

maximum inventory levels for your items. When the

inventory level for an item (on-hand quantities plus

quantities on order) drops below the minimum, Oracle

Inventory suggests a new purchase requisition, internal

requisition, move order, or job to bring the balance back

up to the maximum.


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Min/Max Planning


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Reorder point planning uses demand forecasts to decide when toorder a new quantity to avoid dipping into safety stock. Reorder point

planning suggests a new order for an item when the availablequantity-on-hand quantity plus planned receipts-drops below theitems safety stock level plus forecast demand for the item during itsreplenishment lead time. The suggested order quantity is aneconomic order quantity that minimizes the total cost of ordering andcarrying inventory.


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Kanban Replenishment

Kanban is a means of supporting pull-based

replenishment in manufacturing systems. A Kanban

system is a self-regulating pull system that leads to

shorter lead times and reduced inventory. Kanban

systems are typically applied to items that have relatively

constant demand and medium-to-high production

volume. The system includes an API that can be called by

external systems, such as bar code readers, to trigger

replenishment signals.


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Kanban Replenishment


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Advanced Supply Chain Planning

Oracle Advanced Supply Chain Planning (ASCP) is a

comprehensive, Internet-based planning solution that

decides when and where supplies (for example,

inventory, purchase orders and work orders) should be

deployed within an extended supply chain.

ASCP works across many inventory organizations

ASCP can run on a separate server to allow for multiple

planning runs during day or evening


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INV ORG 1

INV ORG 2INV ORG 3

Demand

ASCP

MRP vs ASCP

MRP

INV ORG 1

INV ORG 2

MRP

MRP ASCP


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Questions

Oracle Planning

Documents

Transcript of Oracle Planning