Chapter 4.

Advanced Supply Chain Planning

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4.1. Advanced Supply Chain Planning
The various steps of ASCP are
Forecasting and Demand planning : Specify sources of demand by loading the adjusted forecasts into a Master
Demand Schedule using Oracle Demand Planning.
Run collections to bring planning data from the source instance to the planning server, where the data will be accessible
to Oracle ASCP.
Create a Production, Manufacturing or Distribution plan.
Launch the Plan. Once your plan has completed running, you can evaluate the performance of the plan by comparing it
to Key Performance Indicators (KPIs). The Key Indicators compare actual plan values to target values defined in the
Target Repository. Evaluating plans against KPIs lets you select the plan which best meets organizational objectives
that you have defined.
Evaluate the plan based on the number and types of exceptions it generates. Reviewing the exceptions generated by a
plan lets you evaluate a plans performance in more detail than a KPI comparison provides. Oracle ASCP provides a
range of exception messages for all plans. You can easily manage your plan by displaying only those items and orders
that require your attention. By saving the exception messages each time you replan simulations, you can compare
different versions of the same plan or analyze the strengths and weaknesses of a single plan.
4.1.1. Architecture of Advanced planning and Scheduling
A three-machine deployment strategy: A separate machine for source transactions. Another machine for doing
planning calculations on the planning server. One separate machine for the manipulation of large-scale demand
planning data to occur.
Oracle Applications Data Store (ADS): The set of source data tables in each transaction instance that contain data
relevant to planning.
Operational Data Store (ODS): The planning data tables in the planning server that act as destination for the
collected data from each of the data sources (both ADS and Legacy).
Planning Data Store (PDS): The outputs of the planning process. The PDS resides in the same data tables as the
ODS. However, PDS data are marked with plan IDs that show which plans they correspond to, while ODS data
are marked with plan ID = -1.
Oracle Demand Planning generates statistical demand forecasts considering Sales history from Oracle Order
Management. These forecasts are then input into Oracle Inventory Optimization. Oracle Inventory Optimization
generates an optimal time-phased safety stock plan considering Variability of forecast demand and Variability of
supplier lead times. Oracle ASCP considers three streams of independent demand. Safety stock planned demand
from Oracle Inventory Optimization, Forecasts from Oracle Demand Planning, Sales order demand from Oracle
Order Management.
Oracle ASCP considers three streams of independent demand viz: Safety stock planned from Oracle Inventory
Optimization, Forecasts from Oracle Demand Planning & Sales order from Oracle Order Management.
Oracle ASCP generates a time-phased supply plan (planned orders) that can then be released directly to the
appropriate execution systems viz: PO, INV or WIP.
4.1.2. Run Collections
There are two types of collections process viz: standard and continuous.
4.1.2.1. Standard collections process
Standard data collection consists of the following processes:
Pull program: Collects data from the ADS and stores the data into the staging tables.
ODS Load: Performs the data transformation and moves the data from the staging tables to the ODS.
Collection methods:
The Complete Refresh method clears all transaction data for all business entities from the planning server (for the source
instance being collected), then copies over information about the user-selected entities. This method can be time consuming.
The Targeted Refresh method clears transaction data for only the user-selected business entities from the planning server,
and then copies the entity information over from the transaction instance. Information about unselected entities remains
intact on the planning server.
The Net Change Refresh method copies only incremental changes to business entities to the planning server (and is thus
faster), but is supported mainly for demand and supply business entities only.
Transactions (supply and demand) change more frequently than setup entities. After data collections, the collections program
maintains snapshots of transaction entities. Each time you run data collections, the collections program looks at the snapshot
to determine if the transaction entity has changed since the previous collections. If it has, the collections program collects the
incremental data changes and updates the snapshot. As setup entities change less frequently, the collections process does not
keep snapshots for these and cannot perform net change collections on them. Schedule either targeted or complete refresh
for setup data.
4.1.2.2. Continuous collections process
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An automated process of data collection that efficiently synchronizes the data on the planning server by looking up the
sources. System automatically determine the type of collection that needs to be run on entities selected by you.
It synchronizes snapshot-enabled data entities (supply and demand) and snapshot-disabled setup entities (suppliers,
customers and supplier rules) between the sources and the planning server. You can schedule separate collection programs
for collecting data entities and setup entities.
You have to select only those business entities for which the collections process needs to run automatically. The Continuous
Collections concurrent program determines the appropriate mode of performing collections for the selected business entities.
You can run continuous collections on the following entities:
For entities that have snapshots associated with the source, you need to specify a threshold value (as a percent). Based on
this value, the Continuous Collections concurrent program determines whether the collections should run in the
Targeted mode or the Net Change refresh mode. If continuous collections are run frequently, then for most entities, the data
collections are performed in the Net Change Refresh mode.
If the changed records percent is below the threshold percent, the concurrent process collects only the changed records
(Net Change Refresh) from the snapshot log.
If the changed records percent is higher than the threshold percent, the concurrent process collects all of the rows (Targeted
Change Refresh) from the snapshot.
If there are no changed records, the concurrent process does not collect any data.
4.1.1. Advanced Supply Chain Planning
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Plan types in ASCP:
Master Plan
Production Plan
Manufacturing Plan
The production planners of your company want to plan the top level items and sub-assemblies. The buyers and MRP
planners want to see the demands for their MRP planned items based on an approved production schedule from the
production planners. In addition, there is a difference in frequency that each plan is run. The production is run once or twice a
week while the MRP is run every night.
In such a scenario, you can employ a two plan process.
The top level plan, an MPP for example:
Has independent demands including MDS, forecasts, and sales orders.
Plans all MPP, MPS/MPP, MRP/MPP planned items.
Plans critical components that are MRP planned items marked as critical components
Releases orders as required, either manually or auto-release, for MPP, MPS/MPP or MRP/MPP items.
Planners manually review, adjust, and release orders as needed by the shop floor.
The planned orders and reschedules are visible to the MRP after the MRP is launched. Therefore, the planners do not have
to release them until needed by the shop floor.
The lower level plan, the MRP:
Has independent demands for MRP planned items, including MDSs, forecasts and sales orders.
Has the MPP or MPS as a demand schedule This brings into the MRP, the independent demands and supplies for all
MPP or MPS planned items with components that are MRP planned items.
The MRP explodes downwards from the MPP or MPS supplies including planned orders, creating demands for MRP
planned items.
Plans all MRP items and any other planned items that are not planned by the MPP or MPS plans.
Items that are sandwiched between two MPP or two MPS items are designated as MRP planned by MRP and are re-
planned by MRP.
Item attribute MRP Planning Type :
MPP Planned
MPS Planning
MRP Planning
MRP/MPP Planned
MPS/MPP Planned
The inventory planning method in General planning should be "Not planned".
Run a Master plan to generate planned orders for all items
except for the components and subcomponents of M12. This
combination of plan type and MRP Planning Type item attribute
values creates cross-supply chain planned orders for A01, M11,
B13, B21, and M12 and omits M22, B23, B31.
Run a Production Plan using the Master plan (DRP-1) as a
demand schedule. This generates planned orders M12(MPS).
Run a Manufacturing plan, using the Production plan (MPS-1) as
an input demand schedule. This generates planned orders for
M12, M22, B23 and B31
4.1.2. The items in ASCP plan
There are three interdependent ways of controlling which items are planned in and which are excluded from an ASCP plan:
1. Setting the Planning Method item attribute in conjunction with selecting the Plan Type.
2. Setting critical items in conjunction with setting the Include Critical Components flag in ASCP plan options
An item can be set to be critical in two ways:
Explicitly, by checking its Critical Component item attribute
Implicitly, by having a routing (primary or alternate) that includes a resource in the ASCP plans bottleneck resource group
3. Setting the value for the Planned Items plan option, along with setting the organization-level Include Sales Order flag in the
Organizations tab of the Plan Options form. Valid values for the Planned Items plan option are:
All planned items
Demand schedule items only
Supply schedule items only
Demand & Supply schedule items
Demand schedule and WIP components
Demand schedule items and all sales orders
Demand schedule items/WIP components/all sales orders
4.1.3. Sourcing Rules
Sourcing rules and bills of distribution determine the movement of materials between organizations
Specify the Supplier and Supplier Site. Select the mode of transport to be used to convey goods
Specify the sourcing rank. Rank 1 will be exhausted first and then next rank.
In-transit time associated with Shipping Method is automatically populated
Shipping Method Air Freight has instransit lead time of 2 days and no capacity limit.
4.1.4. Bill of Distribution
When material flows through three or more organizations, bills of distribution describe supply chain links more efficiently than
do sourcing rules.
Sourcing rule and BOD is assigned to the assignment set and assignment set is attached to the plan
The assignment hierarchy for sourcing, which is used to finalize on a sourcing rule/BOD for an item is given below.
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