11i Inventory Management Fundamentals - Volume2 - D

11i Inventory Management
Fundamentals
Volume 2 - Student Guide
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D16356GC20
Edition 2.0
January 2005
D40250
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Copyright Oracle Corporation, 2005. All rights reserved.

This documentation contains proprietary information of Oracle Corporation. It is provided under a license agreement containing
restrictions on use and disclosure and is also protected by copyright law. Reverse engineering of the software is prohibited. If this
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Author
Tyra Crockett, Yuvaraj Kandhaswamy
Technical Contributors and Reviewers
Jennifer Sherman, Alain Roth, Mary Hartman, Lata Sundar, Vanessa Graziano, April Nelson, Neeta Gera
This book was published using:
oracletutor
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Table of Contents
11i Receipt to Issue ..........................................................................................................................................1-1
11i Receipt to Issue........................................................................................................................................1-2
Objectives ......................................................................................................................................................1-3
Agenda...........................................................................................................................................................1-4
Overview .......................................................................................................................................................1-5
Agenda...........................................................................................................................................................1-7
Receipt to Issue Life Cycle............................................................................................................................1-8
Agenda...........................................................................................................................................................1-10
Receiving Inventory ......................................................................................................................................1-11
Agenda...........................................................................................................................................................1-14
Transferring Inventory...................................................................................................................................1-15
Agenda...........................................................................................................................................................1-16
Issuing Inventory ...........................................................................................................................................1-17
Agenda...........................................................................................................................................................1-19
Oracle Inventory Application Integration.....................................................................................................1-20
Integration of Oracle Inventory to Financial Applications ...........................................................................1-22
Agenda...........................................................................................................................................................1-23
Summary........................................................................................................................................................1-24
11i Defining Inventory Organizations............................................................................................................2-1
11i Defining Inventory Organizations ...........................................................................................................2-2
Objective........................................................................................................................................................2-3
Agenda...........................................................................................................................................................2-4
Multi-Org Structure .......................................................................................................................................2-5
Organization Model.......................................................................................................................................2-6
Sample Organization Structure......................................................................................................................2-8
Enterprise Structure Considerations ..............................................................................................................2-10
Inventory Organizations ................................................................................................................................2-12
Inventory Organization Structure ..................................................................................................................2-13
Sample Inventory Organization.....................................................................................................................2-14
Agenda...........................................................................................................................................................2-15
Setting up Locations ......................................................................................................................................2-16
Defining Organizations..................................................................................................................................2-17
Organization Setup ........................................................................................................................................2-18
Additional Set Up Steps ................................................................................................................................2-20
Additional Organizational Setups..................................................................................................................2-21
Guided Demonstration: Creating an Inventory Organization ........................................................................2-22
Guided Demonstration - Setting Up Locations..........................................................................................2-23
Guided Demonstration - Setting Up Organizations ...................................................................................2-24
Agenda...........................................................................................................................................................2-27
Summary........................................................................................................................................................2-28
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11i Overview of Defining and Maintaining Items .........................................................................................3-1

11i Overview of Defining and Maintaining Items .........................................................................................3-2
Objective........................................................................................................................................................3-3
Agenda...........................................................................................................................................................3-4
Items ..............................................................................................................................................................3-5
Agenda...........................................................................................................................................................3-6
Oracle Organization.......................................................................................................................................3-7
Inventory Organizations ................................................................................................................................3-8
Defining Organizations..................................................................................................................................3-9
Agenda...........................................................................................................................................................3-10
Defining Items in Item Master.......................................................................................................................3-11
Copyright Oracle, 2005. All rights reserved.
11i Inventory Management Fundamentals Table of Contents

i
Steps to Setup, Define, and Maintain Items..................................................................................................3-12

Defining Items ...............................................................................................................................................3-13
Agenda...........................................................................................................................................................3-14
Item Attributes...............................................................................................................................................3-15
Item Statuses and Attributes ..........................................................................................................................3-16
Item Attribute Groups....................................................................................................................................3-17
Agenda...........................................................................................................................................................3-18
Creating Item Templates ...............................................................................................................................3-19
Enabling Attributes in a Template .................................................................................................................3-20
Agenda...........................................................................................................................................................3-21
Organization Assignment and Organization Item..........................................................................................3-22
Agenda...........................................................................................................................................................3-23
Deletion Constraints and Deletion Groups ....................................................................................................3-24
Agenda...........................................................................................................................................................3-25
Summary........................................................................................................................................................3-26
11i Defining and Maintaining Items Fundamentals .....................................................................................4-1
11i Defining and Maintaining Items Fundamentals.......................................................................................4-2
Objectives ......................................................................................................................................................4-3
Agenda...........................................................................................................................................................4-4
Unit of Measure .............................................................................................................................................4-5
Units of Measure ...........................................................................................................................................4-7
Use of Units of Measure ................................................................................................................................4-8
Defining UOM Classes..................................................................................................................................4-9
Units of Measure Conversions.......................................................................................................................4-10
Units of Measure Setup .................................................................................................................................4-11
Guided Demonstration Overview: Units of Measure ....................................................................................4-12
Guided Demonstration - Units of Measure................................................................................................4-13
Practice Overview: Units of Measure............................................................................................................4-15
Practice - Defining Units of Measure ........................................................................................................4-16
Solution Defining Units of Measure .......................................................................................................4-18
Agenda...........................................................................................................................................................4-21
Item Statuses and Attributes ..........................................................................................................................4-22
Item Status .....................................................................................................................................................4-23
Status Attributes ............................................................................................................................................4-24
Item Attribute Relationships..........................................................................................................................4-25
Status Attribute Interdependencies ................................................................................................................4-26
Status Attributes and Functionality ...............................................................................................................4-29
Guided Demonstration Overview: Viewing Item Attributes .........................................................................4-31
Guided Demonstration - Viewing Item Attributes.....................................................................................4-32
Practice Overview: Viewing Item Attributes.................................................................................................4-33
Practice - Viewing Item Attributes ............................................................................................................4-34
Solution Viewing Item Attributes...........................................................................................................4-35
Agenda...........................................................................................................................................................4-41
Defining the Item Master Organization .........................................................................................................4-42
Agenda...........................................................................................................................................................4-44
Defining Items ...............................................................................................................................................4-45
Steps to Setup, Define, and Maintain Items..................................................................................................4-46
Defining Items ...............................................................................................................................................4-47
Item Templates ..............................................................................................................................................4-48
Organization Assignment and Organization Item..........................................................................................4-49
Item Control Level.........................................................................................................................................4-50
Guided Demonstration: Defining Items.........................................................................................................4-52
Guided Demonstration - Define Item ........................................................................................................4-53
Practice Overview: Defining Items................................................................................................................4-54
Defining Items ...........................................................................................................................................4-55
Solution - Defining Items ..........................................................................................................................4-57
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Agenda...........................................................................................................................................................4-61
Deletion Constraints ......................................................................................................................................4-62
Agenda...........................................................................................................................................................4-64
Profile Values ................................................................................................................................................4-65
Item Profile Options ......................................................................................................................................4-67
Agenda...........................................................................................................................................................4-69
Implementation Considerations .....................................................................................................................4-70
Agenda...........................................................................................................................................................4-71
Summary........................................................................................................................................................4-72
11i Inventory Controls Concepts....................................................................................................................5-1
11i Inventory Controls Concepts ...................................................................................................................5-2
Objectives ......................................................................................................................................................5-3
Agenda...........................................................................................................................................................5-4
Inventory Control Overview..........................................................................................................................5-5
Agenda...........................................................................................................................................................5-6
Subinventories Overview ..............................................................................................................................5-7
Agenda...........................................................................................................................................................5-8
Locator Control Overview.............................................................................................................................5-9
Agenda...........................................................................................................................................................5-10
Revision Control Overview ...........................................................................................................................5-11
Agenda...........................................................................................................................................................5-12
Lot Control Overview....................................................................................................................................5-13
Agenda...........................................................................................................................................................5-14
Serial Number Overview ...............................................................................................................................5-15
Agenda...........................................................................................................................................................5-16
Summary........................................................................................................................................................5-17
11i Inventory Controls Fundamentals ...........................................................................................................6-1
11i Inventory Controls Fundamentals............................................................................................................6-2
Objectives ......................................................................................................................................................6-3
Agenda...........................................................................................................................................................6-4
Inventory Control Overview..........................................................................................................................6-5
Agenda...........................................................................................................................................................6-6
Defining Subinventories ................................................................................................................................6-7
Subinventory-Locator Relationship...............................................................................................................6-8
Locator Structuring........................................................................................................................................6-10
Locator Control Reports ................................................................................................................................6-11
Guided Demonstration Overview: Defining Subinventories .........................................................................6-12
Guided Demonstration - Creating Subinventories .....................................................................................6-13
Practice Overview: Defining Subinventories.................................................................................................6-14
Practice - Creating Subinventories ............................................................................................................6-15
Solution - Creating Subinventories............................................................................................................6-16
Guided Demonstration Overview Setting Up Locator Control......................................................................6-20
Guided Demonstration - Locator Control ..................................................................................................6-21
Practice Overview Setting Up Locator Control .............................................................................................6-23
Practice - Setting Up Locator Control .......................................................................................................6-24
Solution Setting Up Locator Control ......................................................................................................6-26
Agenda...........................................................................................................................................................6-33
Revision Control............................................................................................................................................6-34
Agenda...........................................................................................................................................................6-36
Lot Control ....................................................................................................................................................6-37
Lot Number Purging......................................................................................................................................6-38
Maintaining Lot Information .........................................................................................................................6-39
Cycle Counts Under Lot Control...................................................................................................................6-40
Physical Inventory Under Lot Control...........................................................................................................6-41
Disabled Lots.................................................................................................................................................6-42
Lot Control Reports .......................................................................................................................................6-43
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Agenda...........................................................................................................................................................6-44
Generating Serial Numbers............................................................................................................................6-45
Maintaining Serial Numbers..........................................................................................................................6-46
Serial Genealogy ...........................................................................................................................................6-47
Serial Number Control Reports .....................................................................................................................6-48
Guided Demonstration Overview: Revision, Lot, and Serial Controls..........................................................6-49
Guided Demonstration - Revision, Lot, and Serial Controls .....................................................................6-50
Practice Overview: Revision, Lot, and Serial Controls .................................................................................6-53
Practice - Revision, Lot, and Serial Controls.............................................................................................6-54
Solution Revision, Lot and Serial Controls ............................................................................................6-56
Agenda...........................................................................................................................................................6-67
Locator Flexfield Structure............................................................................................................................6-68
Changing Locator Control .............................................................................................................................6-69
Transacting Controlled Items ........................................................................................................................6-70
Agenda...........................................................................................................................................................6-72
Summary........................................................................................................................................................6-73
11i Transacting Inventory Concepts ..............................................................................................................7-1
11i Transacting Inventory Concepts ..............................................................................................................7-2
Module Objectives.........................................................................................................................................7-3
Agenda...........................................................................................................................................................7-4
Inventory Structure ........................................................................................................................................7-5
Overview .......................................................................................................................................................7-6
Agenda...........................................................................................................................................................7-7
Inventory Transactions ..................................................................................................................................7-8
Agenda...........................................................................................................................................................7-9
Transaction Types..........................................................................................................................................7-10
Transaction Source Types..............................................................................................................................7-11
Transaction Action ........................................................................................................................................7-13
Transaction Reasons ......................................................................................................................................7-15
Transaction Managers....................................................................................................................................7-16
Agenda...........................................................................................................................................................7-17
Move Orders..................................................................................................................................................7-18
Agenda...........................................................................................................................................................7-19
Shortage Alerts and Notifications..................................................................................................................7-20
Agenda...........................................................................................................................................................7-21
Mobile Transactions ......................................................................................................................................7-22
Agenda...........................................................................................................................................................7-23
Summary........................................................................................................................................................7-24
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11i Transaction Setup......................................................................................................................................8-1

11i Transaction Setup ....................................................................................................................................8-2
Objectives ......................................................................................................................................................8-3
Agenda...........................................................................................................................................................8-4
Running Transaction Managers.....................................................................................................................8-5
Predefined Transaction Types .......................................................................................................................8-7
Guided Demonstration Overview: Defining a Customized Transaction .......................................................8-8
Guided Demonstration - Customized Transactions ...................................................................................8-9
Practice Overview: Defining a Customized Transaction...............................................................................8-11
Practice - Defining a Customized Transaction ..........................................................................................8-12
Solution Defining a Customized Transaction .........................................................................................8-13
Agenda...........................................................................................................................................................8-18
Interorganization Shipping Network ...........................................................................................................8-19
Shipping Method ...........................................................................................................................................8-21
Agenda...........................................................................................................................................................8-22
Movement Statistics ......................................................................................................................................8-23
Movement Statistics Parameters....................................................................................................................8-25
Collecting and Reporting Movement Statistics .............................................................................................8-26
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Agenda...........................................................................................................................................................8-28
Account Aliases.............................................................................................................................................8-29
Agenda...........................................................................................................................................................8-30
Setting Up for Move Orders ..........................................................................................................................8-31
Setup Steps for Move Orders.........................................................................................................................8-33
Agenda...........................................................................................................................................................8-35
Material Shortage Alerts and Notifications ...................................................................................................8-36
Setting Up Shortage Alerts and Notifications................................................................................................8-38
Movement Statistics Reports .........................................................................................................................8-39
Transaction Reports and Inquiries .................................................................................................................8-41
Agenda...........................................................................................................................................................8-42
Transaction Profile Options...........................................................................................................................8-43
Agenda...........................................................................................................................................................8-49
Implementation Considerations .....................................................................................................................8-50
Implementation Considerations for Shortage Messages................................................................................8-51
Agenda...........................................................................................................................................................8-52
Summary........................................................................................................................................................8-53
11i Issue and Transfer Material .....................................................................................................................9-1
11i Issue and Transfer Material .....................................................................................................................9-2
Module Objectives.........................................................................................................................................9-3
Agenda...........................................................................................................................................................9-4
Transaction Flows..........................................................................................................................................9-5
Inventory Transactions ..................................................................................................................................9-6
Inventory Transactions Without Documents and Requisitions......................................................................9-7
Inventory Transactions With Documents and Requisitions...........................................................................9-8
Agenda...........................................................................................................................................................9-9
Control Options and Restrictions...................................................................................................................9-10
Agenda...........................................................................................................................................................9-11
Subinventory Transfer ...................................................................................................................................9-12
Guided Demonstration: Subinventory Transfer.............................................................................................9-13
Guided Demonstration - Subinventory Transfers ......................................................................................9-14
Miscellaneous Transaction (Account Receipt) ..............................................................................................9-15
Application of Miscellaneous Transactions...................................................................................................9-17
Inter-organization Direct Shipment ...............................................................................................................9-18
Interorganization Intransit Shipment .............................................................................................................9-20
Guided Demonstration Overview: Interorganization Transfer ......................................................................9-22
Guided Demonstration - Interorganization Transfer..................................................................................9-23
Practice Overview: Interorganization Transfer..............................................................................................9-24
Practice - InterOrganization Transfer ........................................................................................................9-25
Solution InterOrganization Transfer .......................................................................................................9-26
Agenda...........................................................................................................................................................9-29
Managing Receipts ........................................................................................................................................9-30
Using Locations in Receiving........................................................................................................................9-31
Entering Receipt Lines ..................................................................................................................................9-32
Express Receipts and Receiving Transactions...............................................................................................9-34
Receiving Unordered Items ...........................................................................................................................9-35
Direct Receipts ..............................................................................................................................................9-37
Inspecting Received Items.............................................................................................................................9-39
Guided Demonstration Overview: Receiving Items into Inventory ..............................................................9-41
Guided Demonstration - Receiving Stock into Inventory..........................................................................9-42
Practice Overview: Receiving Items into Inventory ......................................................................................9-44
Practice - Receiving Material into Inventory.............................................................................................9-45
Solution Receiving Material into Stock..................................................................................................9-46
Returns to Receiving .....................................................................................................................................9-51
Returns to Inventory ......................................................................................................................................9-52
Entering Returns ............................................................................................................................................9-53
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Guided Demonstration Overview: Receiving Returns to Inventory ..............................................................9-55

Guided Demonstration - Receiving Returns ..............................................................................................9-56
Agenda...........................................................................................................................................................9-57
Receiving Reports..........................................................................................................................................9-58
Agenda...........................................................................................................................................................9-59
Move Orders Process Flow............................................................................................................................9-60
Move Order Requisition Approval Process ...................................................................................................9-61
Benefits of Managed Material Flow in a Facility ..........................................................................................9-63
Move Order Source Types.............................................................................................................................9-65
Move Order Components ..............................................................................................................................9-67
Move Order Allocating..................................................................................................................................9-69
Generate Move Orders...................................................................................................................................9-71
Item Allocation ..............................................................................................................................................9-73
Transact Move Orders ...................................................................................................................................9-74
Guided Demonstration Overview: Transacting Move orders ........................................................................9-75
Guided Demonstration - Transacting Move Orders...................................................................................9-76
Practice Overview: Transacting Move orders................................................................................................9-78
Practice - Transacting Move Orders ..........................................................................................................9-79
Solution Transacting Move Orders.........................................................................................................9-81
Agenda...........................................................................................................................................................9-91
Transactions Using a Mobile Device.............................................................................................................9-92
Guided Demonstration Overview: Mobile Transactions ...............................................................................9-94
Guided Demonstration - Mobile Application Inter-organization Transfer ................................................9-95
Practice Overview: Mobile Transactions.......................................................................................................9-96
Practice - Mobile Transactions ..................................................................................................................9-97
Solution Mobile Transactions.................................................................................................................9-98
Agenda...........................................................................................................................................................9-103
Managing Shipments .....................................................................................................................................9-104
Agenda...........................................................................................................................................................9-105
Summary........................................................................................................................................................9-106
11i Replenishment Concepts...........................................................................................................................10-1
11i Replenishment Concepts .........................................................................................................................10-2
Objectives ......................................................................................................................................................10-3
Agenda...........................................................................................................................................................10-4
Overview .......................................................................................................................................................10-5
Overview of Inventory Planning ...................................................................................................................10-6
Order Planning...............................................................................................................................................10-7
How Much to Order.......................................................................................................................................10-8
Replenishment Process for Intra-Org Supply Sources...................................................................................10-9
Replenishment Process for Supplier Supply Sources ....................................................................................10-10
Replenishment Process for Inter-Org Supply Sources...................................................................................10-11
Replenishment Process for Product Supply Sources .....................................................................................10-12
Agenda...........................................................................................................................................................10-13
Overview of Oracle Inventory Forecasting....................................................................................................10-14
Forecast Types...............................................................................................................................................10-15
Agenda...........................................................................................................................................................10-16
Oracle Inventory Replenishment Methods ....................................................................................................10-17
Replenishment Methods Levels.....................................................................................................................10-18
Safety Stock...................................................................................................................................................10-19
Economic Order Quantity..............................................................................................................................10-20
Overview of Reorder-Point Planning ............................................................................................................10-21
Overview of Min-max Planning ....................................................................................................................10-22
Overview of Kanban Replenishment.............................................................................................................10-23
Overview of Replenishment Counting ..........................................................................................................10-25
Overview of PAR Counting...........................................................................................................................10-26
Agenda...........................................................................................................................................................10-27
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Mobile Replenishment Count Overview .......................................................................................................10-28

Agenda...........................................................................................................................................................10-29
Summary........................................................................................................................................................10-30
11i Replenishment Fundamentals ..................................................................................................................11-1
11i Replenishment Fundamentals.................................................................................................................11-2
Objectives ......................................................................................................................................................11-3
Agenda...........................................................................................................................................................11-4
Overview .......................................................................................................................................................11-5
Agenda...........................................................................................................................................................11-6
Focus Forecasting ..........................................................................................................................................11-7
Focus-Forecasting (continued) ......................................................................................................................11-8
Using Focus Forecasting ...............................................................................................................................11-10
Focus Forecasting Example...........................................................................................................................11-11
Statistical Forecasting....................................................................................................................................11-13
Exponential Smoothing Forecast (ESF) ........................................................................................................11-14
Trend-Enhanced Forecast (TEF) ...................................................................................................................11-16
Season-Enhanced Forecast (SEF)..................................................................................................................11-18
Trend- and Season-Enhanced Forecast (TSEF).............................................................................................11-20
Forecast Setup and Maintenance ...................................................................................................................11-22
Guided Demonstration Overview: Creating a Manual Forecast ....................................................................11-23
Guided Demonstration - Creating a Manual Forecast ...............................................................................11-24
Practice Overview: Creating a Manual Forecast ...........................................................................................11-26
Practice - Creating a Manual Forecast .......................................................................................................11-27
Solution Creating a Manual Forecast......................................................................................................11-28
Agenda...........................................................................................................................................................11-31
Uses of Reorder-point Planning.....................................................................................................................11-32
Reorder-point Planning: Safety Stock ...........................................................................................................11-33
Reorder-Point Planning: Lead Time ..............................................................................................................11-34
Reorder-Point Planning: Reorder Quantity....................................................................................................11-35
Reorder-Point Planning Steps........................................................................................................................11-37
Entering Item Planning Attributes .................................................................................................................11-38
Entering General Planning Attributes for Reorder-point Planning................................................................11-39
Entering Lead Times .....................................................................................................................................11-41
Entering Safety Stocks...................................................................................................................................11-42
Performing Reorder-point Planning...............................................................................................................11-44
Guided Demonstration: Reorder Point Planning ...........................................................................................11-46
Guided Demonstration - Reorder Point Planning ......................................................................................11-47
Agenda...........................................................................................................................................................11-48
Uses of Min-max Planning ............................................................................................................................11-49
Min-max Planning .........................................................................................................................................11-50
Min-max Planning: When to Order? ............................................................................................................11-51
Min-max Planning: How Much to Order? ....................................................................................................11-52
Min-max Planning Steps ...............................................................................................................................11-53
Item Planning Attributes................................................................................................................................11-54
Min-max Planning Setup Procedure ..............................................................................................................11-55
Selecting a Planning Level ............................................................................................................................11-56
Entering Planning Attributes .........................................................................................................................11-57
Submitting the Min-max Planning Requests .................................................................................................11-58
Guided Demonstration Overview: Min-max Planning ..................................................................................11-60
Guided Demonstration - Min-max Planning..............................................................................................11-61
Practice Overview: Min-max Planning..........................................................................................................11-63
Practice - Performing Min-max Planning ..................................................................................................11-64
Solution Performing Min-max Planning.................................................................................................11-65
Agenda...........................................................................................................................................................11-71
Uses of Replenishment Counting ..................................................................................................................11-72
Replenishment Planning Steps ......................................................................................................................11-73
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Subinventories Window ................................................................................................................................11-75

Item Subinventories Window ........................................................................................................................11-76
Item Subinventories: Order Modifier Tab ....................................................................................................11-77
Replenishment Count Headers ......................................................................................................................11-78
Replenishment Count Lines...........................................................................................................................11-79
Processing Replenishment Counts................................................................................................................11-81
Practice Overview: Performing a Replenishment Count Using Forms..........................................................11-83
Practice - Performing a Replenishment Count Using Forms .....................................................................11-84
Solution - Performing a Replenishment Count Using Forms ....................................................................11-86
Practice Overview: Performing a Replenishment Count Using the Mobile Application...............................11-91
Practice - Performing a Replenishment Count Using the Mobile Application ..........................................11-92
Solution - Performing a Replenishment Count Using the Mobile Application .........................................11-94
Processing PAR Counts.................................................................................................................................11-102
Reorder Quantity For PAR Count .................................................................................................................11-103
Agenda...........................................................................................................................................................11-105
Kanban Cards ................................................................................................................................................11-106
Kanban Planned Items ...................................................................................................................................11-107
Kanban Cards ................................................................................................................................................11-109
Kanban Supply Status....................................................................................................................................11-111
Kanban Replenishment Sources ....................................................................................................................11-112
Kanban Card Printing ....................................................................................................................................11-113
Guided Demonstration Overview: Generating Kanban Cards.......................................................................11-114
Guided Demonstration - Kanban ...............................................................................................................11-115
Practice Overview: Generating Kanban Cards ..............................................................................................11-116
Practice - Generating Kanban Cards..........................................................................................................11-117
Solution Generating Kanban Cards ........................................................................................................11-118
Agenda...........................................................................................................................................................11-122
Available to Promise .....................................................................................................................................11-123
ATP Rules and ATP Checks..........................................................................................................................11-124
Uses of ATP in Oracle Inventory ..................................................................................................................11-125
Steps for Checking ATP ................................................................................................................................11-126
ATP Rules Setup Steps..................................................................................................................................11-127
Defining Computation Options......................................................................................................................11-128
Specifying Supply and Demand Time Fences ...............................................................................................11-130
Specifying Demand Sources..........................................................................................................................11-134
Specifying Supply Sources ............................................................................................................................11-136
Setting Up Item and Bills for ATP Checking ................................................................................................11-137
ATP Checking ...............................................................................................................................................11-138
Viewing ATP Criteria....................................................................................................................................11-141
Agenda...........................................................................................................................................................11-142
Planning and Forecasting Profile Options .....................................................................................................11-143
Setting Up the Min-Max System Profile Value.............................................................................................11-145
Subinventory Setup Windows .......................................................................................................................11-146
Agenda...........................................................................................................................................................11-147
Min-Max Order Type and Order Source .......................................................................................................11-148
Replenishment Method Selection ..................................................................................................................11-151
Agenda...........................................................................................................................................................11-152
Summary........................................................................................................................................................11-153
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11i Inventory Accuracy Concepts ..................................................................................................................12-1

11i Inventory Accuracy Concepts..................................................................................................................12-2
Objectives ......................................................................................................................................................12-3
Agenda...........................................................................................................................................................12-4
Overview of Inventory Accuracy ..................................................................................................................12-5
Agenda...........................................................................................................................................................12-6
ABC Analysis Overview ...............................................................................................................................12-7
Agenda...........................................................................................................................................................12-8

viii
Cycle Counting Overview .............................................................................................................................12-9

Agenda...........................................................................................................................................................12-10
Physical Inventory Overview ........................................................................................................................12-11
Why Perform Physical Inventories? ..............................................................................................................12-12
Agenda...........................................................................................................................................................12-13
Mobile Inventory Accuracy Overview ..........................................................................................................12-14
Agenda...........................................................................................................................................................12-15
Summary........................................................................................................................................................12-16
11i Inventory Accuracy Fundamentals..........................................................................................................13-1
11i Inventory Accuracy Fundamentals ..........................................................................................................13-2
Objectives ......................................................................................................................................................13-3
Agenda...........................................................................................................................................................13-4
Defining an ABC Analysis ............................................................................................................................13-5
Define and Run an ABC Compilation ...........................................................................................................13-6
ABC Compilation Criteria.............................................................................................................................13-7
Agenda...........................................................................................................................................................13-9
ABC Valuation Scope ...................................................................................................................................13-10
Agenda...........................................................................................................................................................13-11
Defining ABC Groups ...................................................................................................................................13-12
Defining ABC Classes...................................................................................................................................13-13
ABC Item Assignments .................................................................................................................................13-14
Guided Demonstration Overview: Compiling an ABC Analysis ..................................................................13-16
Guided Demonstration - ABC Analysis ....................................................................................................13-17
Practice Overview: Compiling an ABC Analysis..........................................................................................13-19
Practice - Compiling an ABC Analysis .....................................................................................................13-20
Solution Compiling an ABC Analysis....................................................................................................13-22
Agenda...........................................................................................................................................................13-28
Defining and Maintaining a Cycle Count ......................................................................................................13-29
Agenda...........................................................................................................................................................13-30
Cycle Count Approval Tolerance ..................................................................................................................13-31
Approval Tolerances......................................................................................................................................13-32
Hit/Miss Tolerance ........................................................................................................................................13-34
Measurement Errors ......................................................................................................................................13-35
Cycle Count Items .........................................................................................................................................13-36
Agenda...........................................................................................................................................................13-38
Automatic Scheduling ...................................................................................................................................13-39
Manual Scheduling ........................................................................................................................................13-40
Count Requests ..............................................................................................................................................13-41
Entering Cycle Counts...................................................................................................................................13-43
Cycle Count Open Interface ..........................................................................................................................13-44
Agenda...........................................................................................................................................................13-45
Count Adjustments and Approvals ................................................................................................................13-46
Automatic Recounts ......................................................................................................................................13-47
Approving Cycle Counts and Adjustments ...................................................................................................13-48
Guided Demonstration Overview: Performing Cycle Counts .......................................................................13-50
Guided Demonstration - Cycle Counting ..................................................................................................13-51
Practice Overview: Performing Cycle Counts...............................................................................................13-54
Practice - Performing a Cycle Count .........................................................................................................13-55
Solution Performing a Cycle Count........................................................................................................13-57
Practice Overview: Mobile Counting ............................................................................................................13-66
Practice - Mobile Counting........................................................................................................................13-67
Solution Mobile Counting ......................................................................................................................13-68
Agenda...........................................................................................................................................................13-73
Summary........................................................................................................................................................13-74
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Preface
Profile
Before You Begin This Course
Before you begin this course, you should have the following qualifications:
Working experience with Oracle Applications.
Prerequisites
There are no prerequisites for this course.
How This Course Is Organized

11i Inventory Management Fundamentals is an instructor-led course featuring lecture and handson exercises. Online demonstrations and written practice sessions reinforce the concepts and
skills introduced.
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Related Publications
Oracle Publications
Title
Part Number
Oracle Inventory Users Guide
A8350708
Additional Publications
None
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xii
Typographic Conventions
Typographic Conventions in Text
Convention
Bold italic
Caps and
lowercase
Courier new,
case sensitive
(default is
lowercase)
Initial cap
Element
Glossary term (if
there is a glossary)
Buttons,
check boxes,
triggers,
windows
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames
Arrow
Brackets
Commas
Graphics labels
(unless the term is a
proper noun)
Emphasized words
and phrases,
titles of books and
courses,
variables
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in crossreferences
SQL column
names, commands,
functions, schemas,
table names
Menu paths
Key names
Key sequences
Plus signs
Key combinations
Italic
Quotation
marks
Uppercase
Example
The algorithm inserts the new key.
Click the Executable button.
Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.
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\projects
URL: Go to http://www.oracle.com
User input: Enter 300
Username: Log on as scott
Customer address (but Oracle Payables)
Do not save changes to the database.
For further information, see Oracle7 Server SQL Language
Reference Manual.
Enter user_id@us.oracle.com, where user_id is the
name of the user.
Select Include a reusable module component and click Finish.
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This subject is covered in Unit II, Lesson 3, Working with

Objects.
Use the SELECT command to view information stored in the

LAST_NAME
column of the EMP table.
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Select File > Save.

Press [Enter].
Press and release keys one at a time:
[Alternate], [F], [D]
Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

xiii
Typographic Conventions in Code

Convention
Caps and
lowercase
Lowercase
Element
Oracle Forms
triggers
Column names,
table names
Example
When-Validate-Item
Passwords
DROP USER scott

IDENTIFIED BY tiger;
OG_ACTIVATE_LAYER
(OG_GET_LAYER (prod_pie_layer))
SELECT last_name
FROM s_emp;
PL/SQL objects
Lowercase
italic
Uppercase
Syntax variables
CREATE ROLE role
SQL commands and SELECT userid

FROM emp;
functions
Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct 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 then Entry then Invoice Batches
Summary.
2.
(M) From the menu, select Query then Find.
3.
(B) Click the Approve button.
Notations:
(N) = Navigator
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(M) = Menu
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(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab

xiv
Typographical Conventions in Oracle Application Help System Paths

This course uses a navigation path convention to represent actions you perform to 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 General Ledger 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 the help system
window.
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xvi
11i Issue and Transfer

Material
Chapter 9
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11i Issue and Transfer Material

Chapter 9 - Page 1
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Chapter 9 - Page 2
Module Objectives
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Chapter 9 - Page 3
Agenda
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Chapter 9 - Page 4
Transaction Flows
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Transaction Flows
A transaction is an item movement into, within, or out of inventory.
A transaction can change the quantity, location, and inventory value 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) that you enable for your items.
You can choose your own transaction processing methods to use available computing
resources most effectively.
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Chapter 9 - Page 5
Inventory Transactions
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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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Chapter 9 - Page 6
Inventory Transactions Without Documents and Requisitions
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Inventory Transactions Without Documents and Requisitions

Inventory organization transfers can be accomplished without using an internal
requisition or internal sales order.
You can use miscellaneous receipts to receive material without a purchase order number.
Use miscellaneous issues to issue material without approvals or a document number.
Use subinventory transfers to transfer the location of material without a document
number.
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Chapter 9 - Page 7
Inventory Transactions With Documents and Requisitions
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Inventory Transactions with Documents and Requisitions

You can use internal requisitions and internal sales orders as an approval mechanism and to
provide a document to track when you transport material between warehouses or transfer
material across inventory organizations.
Within a single warehouse or inventory organization:
Use move orders with a Move Order Issue transaction type to approve a transaction 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 the material and track the movement.
Use move orders with a Subinventory Transfer transaction type to approve a transfer and
to provide a document to track the transfer of the material.
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Chapter 9 - Page 8
Agenda
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Chapter 9 - Page 9
Control Options and Restrictions
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Chapter 9 - Page 10
Agenda
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Chapter 9 - Page 11
Subinventory Transfer
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Subinventory Transfer
(N) Transactions > Subinventory Transfer (B) Transaction Lines
Choosing a Transaction Type
You can use one of your user-defined transaction types or one of the system predefined
transaction type, Subinventory Transfer.
Entering a Transaction Source
You can enter source information for the source type associated with the transaction type you
chose. The source type corresponding to the transaction type determines whether Oracle
Inventory validates the source information.
Application of Subinventory Transfers
You can move items from one bin to another.
You can replenish floor stock inventories or move items from one stockroom to another.
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Transferring
Between Subinventories
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Chapter 9 - Page 12
Guided Demonstration: Subinventory Transfer
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Chapter 9 - Page 13
Guided Demonstration - Subinventory Transfers

Responsibility: Inventory, Vision Operations USA
1.
(N) > Transactions > Subinventory Transfer
2.
Enter Subinventory Transfer as the Type.
3.
Choose Transaction Lines.
4.
Enter the following transfer information.

Item:
AS18947
Subinventory:
FGI
Quantity:
45
To Subinventory:
Stores
5.
(M) File > Save.
6.
(M) File > Close Form.
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Chapter 9 - Page 14
Miscellaneous Transaction (Account Receipt)
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Miscellaneous Transaction
(N) Transactions > Miscellaneous Transaction
Choosing a Transaction Type
You can use one of your user-defined transaction types or
one of the system-defined transaction types:
Account alias issue
Account alias receipt
Account issue
Account receipt
Miscellaneous issue
Miscellaneous receipt
Enter source information for the source type associated with the transaction type you chose.
The source type corresponding to the transaction type determines whether Oracle Inventory
validates the source information.
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Chapter 9 - Page 15
If you enter an account or an account alias, the account is credited or debited depending on
whether you are conducting an issue or a receipt. When your transaction type has a userdefined source type, enter a source for your miscellaneous transaction. For example if your
transaction type is Issue to Charity, you might enter Goodwill as your source and the expense
account corresponding to Goodwill or Charities in the Account field.
Entering an Account Number
Charge each miscellaneous transaction to an account number or an account alias. If your source
type is Account alias, your account number is not displayed but Oracle Inventory uses the
account identified by your account alias.
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > Performing
Miscellaneous Transactions
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Chapter 9 - Page 16
Application of Miscellaneous Transactions
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When do You Perform Miscellaneous Transactions

Initial loading of item on-hand quantities when you start implementing Oracle Inventory
Scrapping items by issuing them to expense accounts denoting scrap
Issuing items to individuals, departments, or projects
Receiving items that were acquired by assorted means (without purchase orders)
Entering adjustments and corrections to system quantities due to theft, vandalism, loss,
shelf-life expiration, or inaccurate record keeping
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Chapter 9 - Page 17
Inter-organization Direct Shipment
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Inventory Direct Shipment

(N) Transactions > Inter-organization Transfer (B) Transaction Lines
Transaction Type
You must use a transaction type that corresponds to the type of transfer (direct or intransit).
Use either a user-defined or a system-defined transaction type.
You can enter source information for each interorganization transfer transaction. Enter source
information for the source type associated with the transaction type you chose.The source type
corresponding to the transaction type determines whether Oracle Inventory validates the source
information.
Entering Freight Information
You can choose the freight carrier to use for your shipment. Update the default interorganization transfer accounts, freight charge, and transfer credit information.
You can specify the expected receipt date for your shipment. Oracle Inventory and MRP/MPS
use intransit shipments as supply sources for ATP checking and the planning processes.
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Chapter 9 - Page 18
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > InterOrganization Transfers
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Chapter 9 - Page 19
Interorganization Intransit Shipment
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Intransit Shipment
(N) Transactions > Inter-organization Transfer > (B) Transaction Lines
When you use the Intransit Shipment window to perform the transfer transaction:
You do not need to specify the delivery location.
You only need to enter the subinventory you are shipping from, a shipment number, the
freight information, and a percentage of the transaction value or a discrete amount that
Oracle Inventory uses to compute transfer charges.
Transaction Type
You must use a transaction type that corresponds to the type of transfer (direct or intransit).
Use either a user-defined or a system-defined transaction type.
You can enter source information for each interorganization transfer transaction. Enter source
information for the source type associated with the transaction type you chose. The source type
corresponding to the transaction type determines whether Oracle Inventory validates the source
information.
Entering Freight Information
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Chapter 9 - Page 20
You can choose the freight carrier to use for your shipment. Update the default
interorganization transfer accounts, freight charge, and transfer credit information.
You can specify the expected receipt date for your shipment. Oracle Inventory and MRP/MPS
use intransit shipments as supply sources for ATP checking and the planning processes.
(Help) Oracle Manufacturing Applications > Oracle Inventory > Transactions > InterOrganization Transfers
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Chapter 9 - Page 21
Guided Demonstration Overview: Interorganization Transfer
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Chapter 9 - Page 22
Guided Demonstration - Interorganization Transfer

1.
(N) Transactions > Inter-organization Transfer

Note: Verify a shipping network exists between the shipping organization and the receiving
organization.
2.
Enter the following transaction information:

To Org:
M2
Type:
Intransit Shipment
Freight:
DHL
Shipment Number:
001
Containers:
2
3.
Choose Transaction Lines
4.

Item:
AS18947
From Subinventory:
FGI
To Subinventory:
Stores
Quantity:
10
5.
(M) File > Save.
6.
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Chapter 9 - Page 23
Practice Overview: Interorganization Transfer
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Chapter 9 - Page 24
Practice - InterOrganization Transfer

Overview
Your instructor has validated the shipment of product from the Seattle, WA organization (M1) to
the Boston, MA Organization (M2). Now we will ship a part between M1 and M2.
Note: Make sure the part you decide to ship has been assigned to both M1 and M2.
Assumptions
You are skilled in Oracle navigation.
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Transacting Items
Transfer an item from M1 Seattle Manufacturing to M2 Boston Manufacturing using the
following information:
Transact Type:
Inventory Intransit shipment
Shipment Number:
T##
Freight:
DHL
Waybill:
T##
Containers:
Expected Receipt date:
1 week from today.
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Chapter 9 - Page 25
Solution InterOrganization Transfer

Transacting Items
Responsibility = Inventory, Vision Operations USA
1.
Navigate to the Inter Organization Transfer Window.
2.
(N) Transactions > Inter-organization Transfer

To Org:
M2 Boston Manufacturing
Transact Type:
Intransit shipment
Shipment Number:
T##
Freight:
DHL
Waybill:
T##
Containers:
1
Expected Receipt date:
1 week from today.
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Select Transaction Lines.

Item:
From subinventory:
To subinventory:
Quantity:
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Your Choice
##-FGI
FGI (this is Bostons subinventory)
1

Chapter 9 - Page 26
NOTE: If you choose an item that has inventory controls, the system requires you to enter
that information for both the shipping organization and the receiving organization.
3.
(M) File > Save.
4.
Viewing Transactions
5.
Navigate to the Material Transactions window.
6.
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(N) Transactions > Material Transactions.
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Enter your part number and select the Find button.

Chapter 9 - Page 27
7.
8.
Select the Intransit tab.
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Chapter 9 - Page 28
Agenda
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Chapter 9 - Page 29
Managing Receipts
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Managing Receipts
Receive both internally and externally sourced shipments. You can deliver to inventory, shop
floor, and expense destinations.
You can satisfy the following receiving business needs:
Increased receiving process control
Streamlined receiving throughput
Increased transaction visibility and traceability
A common process for all receipt types
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Chapter 9 - Page 30
Using Locations in Receiving
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Using Locations in Receiving

This slide shows the use of several receiving locations and the delivery of ten items each to
multiple destinations.
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Chapter 9 - Page 31
Entering Receipt Lines
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Specifying Receipt Line Information (Oracle Purchasing)

You typically process receipts by selecting the items you want to receive and noting actual
quantities. There are minor differences between the different Receiving transactions you will
process. See the next few slides for information on these different types and when each should
be used.
Purchasing displays the Quantity due for the shipment. If you change the unit of measure, the
receipt quantity is adjusted to reflect the new unit of measure. You can override this value if
you are recording a partial receipt or an over-receipt.
The quantity received on the corresponding purchase order or return material authorization
(RMA) is updated to reflect the received quantity.
Substitutions
You can receive predefined substitute items when you allow suppliers to ship alternatives to
the items that you order.
Scenario
You sell bicycles and assign unique internal item numbers to mountain bikes of the same
model but different colors.
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Chapter 9 - Page 32
You also have an agreement with your mountain bike supplier that allows him to ship
white bikes in place of the blue bikes you order if that is all he has in stock.
Specifying Substitute Receipt Details
You can select a substitute item in the Lines region based on the following restrictions:
You must allow substitute receipts for the shipments you want to receive.
You have defined substitutes for the items you want to receive.
When you query in the list of values for the item, Oracle Purchasing displays all valid
substitutes for the item you want to receive. All subsequent receipt processing is identical to
other standard and direct receipts.
Supplying Handling of Substitute Items
When you receive a substitute item, Oracle Purchasing removes the purchase order supply for
the original item.
If you perform a standard receipt, Purchasing creates receiving supply for the new item.
If you perform a direct receipt, Oracle increments on-hand balances for the new item.
(Help) Oracle Manufacturing Applications > Oracle Purchasing >
Receiving > Entering Receipt Lines
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Chapter 9 - Page 33
Express Receipts and Receiving Transactions
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Specifying Express Receipt Details Options

Create a new receipt or add to an existing receipt for the supplier who shipped the items
you want to transact.
Specify the supplier for new receipts.
Click Express to select either the final destination or the default receiving location.
Omit individual shipments that you do not want to process by selecting the Omit action in
the Receipt Lines region.
Any receipts that cannot be transacted with an express receipt will remain in the Receipt
Line region after you save your work.
In order to enable the Express button, the Find Expected Receipts window must be able to
derive the supplier either by specifying the supplier or a PO number.
Receiving > Express Receipts and Receiving Transactions
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Chapter 9 - Page 34
Receiving Unordered Items
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Unordered Items
You can receive items for which there is no corresponding purchase order. The first step is to
create a record of the receipts, citing Supplier, Item, and Quantity details. Match these received
items to an existing purchase order in a second step, and then continue transacting them as you
would any other supplier receipt.
Scenario
You receive items that you actually did order, but the shipping documentation is illegible
or missing.
You have an agreement with the supplier that allows overruns against existing orders;
however, you do not allow over-receipts for this item.
In both cases you want to receive the items so you can track them on the system while you wait
for a buyer to decide which purchase order to use for the match transaction.
Receipt Header window (Oracle Purchasing)
Navigate to the Find Expected Receipts window.
Choose the Supplier and Internal tabbed region to create an unordered receipt that will later be
matched to a purchase order or release.
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Chapter 9 - Page 35
Choose the Customer tabbed region to create an unordered receipt that will later be matched to
a Return Material Authorization (RMA). An RMA is created in Order Management to
authorize a customer's returning an item to your company.
Initiating an Unordered Receipt
Click Unordered in the Find Expected Receipts window.
Enter receipt header information such as Freight Carrier, Packing Slip, Number of
Containers in the Receipt Header window.
You cannot add to an unordered receipt header but you can attach detail lines to that
header.
Specifying Unordered Receipt Lines
Enter specific line information such as quantity, unit of measure, item, or item description for
all unordered items received. This information is critical to the subsequent process of matching
this receipt to its actual order.
Create a new receipt for the supplier who shipped the unordered items.
Perform a standard receipt for the unordered item shipment quantity.
Note that the Destination Type defaults to Receiving.
Location is a required field and must be a receiving location.
Optionally, you can provide receipt details or attachments for this transaction.
Specifying Unordered Receipt Details (Oracle Purchasing)
You can enter specific line information such as quantity, unit of measure, item, or item
description.
Supplying Handling of Unordered Items
When you receive unordered items, the supply is invisible to Oracles planning and inventory
products until you match this receipt to a purchase order.
When you perform the match, Oracle Purchasing reduces the purchase order supply by the
received quantity and replaces it with a receiving supply for that same quantity
Receiving > Unordered Receipts
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Chapter 9 - Page 36
Direct Receipts
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Performing a Direct Receipt

If the associated receipt Routing is Standard Receipt or Inspection Required, you cannot
perform a direct receipt unless your Allow Routing Override profile is set to Yes.
You can specify the quantity you want to receive in your selected unit of measure. Optionally
you can enter receipt line details and attachments for this shipment.
Delivery Requirements for Direct Receipts
Oracle Purchasing requires that all destination details be complete for direct receipts. When
you save your work, Oracle Purchasing prompts you for any missing destination details,
including:
Destination Type Destination Details
Inventory
Lot and serial numbers if required by Inventory setup
Inventory
Subinventory
Inventory
Locator if required by Inventory setup
Inventory
Item revision if required by Inventory setup
Expense
Deliver to location
Direct Receipts with Multiple Distributions
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Chapter 9 - Page 37
If you record a direct receipt for a shipment with multiple distributions, Oracle Purchasing also
prompts you to allocate your receipt quantity manually across these distributions. You can
double-click the plus sign to expand, or the minus sign to collapse, the multiple distributions.
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Chapter 9 - Page 38
Inspecting Received Items
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Specifying Inspection Details (Oracle Purchasing)

Select Accept or Reject for each transaction you want to inspect.
Enter the quantity associated with this inspection result.
You can add additional information, including a user-defined Quality Code.
Multiple Inspection Results by Transaction
You can record multiple inspection results for each transaction. For example, if a lot of 15
items fails inspection due to four discrete quality problems, you can record four Reject actions
for the inspected quantity. Oracle Purchasing constructs this transaction history as follows:
Receive
15
Reject
15
Reject
15
Reject
15
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Receiving > Inspections
and

Chapter 9 - Page 39

Receiving > Inspecting Received Items
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Chapter 9 - Page 40
Guided Demonstration Overview: Receiving Items into Inventory
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Chapter 9 - Page 41
Guided Demonstration - Receiving Stock into Inventory

Receipts
1.
(N) Change Organization.

2.
(N) Transactions > Receiving > Receipts.
3.

Source Type:
Internal
Item:
AS18947
4.
Choose Find.
5.
Select the Item to receive.
6.
Enter the receiving Location.
7.
(M) File > Save.
8.
Receiving Stock
9.
(N) Transactions > Receiving > Receiving Transactions.
10. Enter the following transaction information:

Type:
Internal
Item:
AS18947
11. Choose Find.
12. Select the transaction to deliver.
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13. Enter the following receiving information:

Location:
M2 Boston
Subinventory: Stores
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14. (M) File > Save.
15. (M) File > Close Form.
Verifying Receipts and Receiving Transacitons

16. (N) Transactions > Receiving > View Receiving Transactions

Chapter 9 - Page 42

Type:
Internal
Item:
AS18947
18. Choose Find.
19. Select the appropriate receipt number.
20. Choose Transactions.
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Chapter 9 - Page 43
Practice Overview: Receiving Items into Inventory
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Chapter 9 - Page 44
Practice - Receiving Material into Inventory

Overview
In this practice you learn how to receive items into inventory.
Assumptions
You are skilled in Oracle Navigation
You completed the defining items practice
You completed the interorganization transfer practice
Tasks
Receiving Inventory
Receive the item into stock that you transferred in the interorganization transfer practice.
Moving Items from Receiving into Inventory
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After you take delivery of the item in receiving, move it into inventory.
Verifying the Items are in Inventory
Verify that the transaction is processed and the resulting on-hand quantity.
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Chapter 9 - Page 45
Solution Receiving Material into Stock

Receiving Inventory
1.
Change Organization to M2 Boston.
2.
(N) Change Organization

Navigate to the Receiving Receipts window.
(N) Transactions > Receiving > Receipts

Source Type:
Internal
Item:
The item you transferred in the Interorganization practice.
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3.
Select Find.
4.
Close the Header when it opens
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Chapter 9 - Page 46
5.
Select the item you want to receive
6.
Verify the item quantity
7.
Verify the UOM.
8.
Enter the appropriate inventory control information if necessary.
9.
Enter M2 Boston in the Location column
10. Save and Close window
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(M) File > Save
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(M) File > Close Form
Moving Items from Receiving into Inventory

11. Navigate to the Receiving Transactions window.
(N) Transactions > Receiving > Receiving Transaction.
12. Find your item in the Find Receiving Transactions window.

Chapter 9 - Page 47
13. Select the Item to receive.

14. Enter M2 Boston as the Location.
15. Verify FGI is the subinventory.
16. Save and Close window
(M) File > Save
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Verifying the Items are in Inventory
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17. Verify the transaction processed.
(N) Transaction > Receiving > View Receiving Transaction

Find your item
View the Receipt Headers Summary

Chapter 9 - Page 48
Select Transactions
Verify the transaction receipt and delivery.
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Chapter 9 - Page 49
18. Close the window.
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Chapter 9 - Page 50
Returns to Receiving
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Returns
Oracle Purchasing allows you to perform returns to suppliers and returns to customers in the
Receiving Returns window. Use the Receiving Returns window to return delivered items to
Receiving and to return received or delivered externally sourced items to the Supplier if the
purchase order has neither been cancelled nor final closed. For controlled items, you must
specify lot numbers, serial numbers or locators as appropriate. If the Quality module is
installed, you can enter quality information.
You can use the Receiving Returns window to return items back to a customer. For example, a
customer returns to your company a part that does not work properly. You receive and fix the
part, then return the part to the customer.
Note: You cannot enter returns for internal shipments.
For more information on returns, refer to the Online Help:
Receiving > Returns
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Chapter 9 - Page 51
Returns to Inventory
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Chapter 9 - Page 52
Entering Returns
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Receiving Returns (Oracle Purchasing)

You can return both received and delivered items to the source supplier when you experience
quality problems, purchased the wrong item, or have excess inventory.
Specifying Return to Supplier Details
You can choose the Return To Supplier action and enter the quantity you want to return. Oracle
Purchasing populates the Return To field with the source supplier for your items.
You can update the Return From subinventory for Inventory deliveries. You cannot update the
Return From information for Expense and Shop Floor deliveries. You can specify additional
return information such as Reason Code and RMA Number and a lot and serial information, if
required.
Purchase Order Effects
When you perform a Return To Supplier transaction, Oracle Purchasing reopens the associated
purchase order for the return quantity by reducing the original receipt quantity. You cannot
perform a Return To Supplier transaction against a Finally Closed or Cancelled purchase order.
Return to Supplier Transaction History
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Chapter 9 - Page 53
When you perform a Return To Supplier transaction, Oracle Purchasing automatically creates
both a Return To Receiving and a Return To Supplier transaction.
For example, if you receive, deliver, and return ten items to their supplier, Oracle Purchasing
constructs your transaction history as follows:
Receive
10
Deliver10
Step 1
Return to receiving 10
Step 2
Return to supplier
10
Receiving > Entering Returns
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Chapter 9 - Page 54
Guided Demonstration Overview: Receiving Returns to Inventory
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Chapter 9 - Page 55
Guided Demonstration - Receiving Returns

Receiving Returns
1.
(N) Change Organization.

M1 Seattle Manufacturing
2.
(N) Transactions > Receiving > Receipts.
3.
(T) Customer.
4.
Enter the RMA number.
5.
Choose Find.
6.
Close the Receipt Header
7.
Verify the receipt information.
8.
Select M1 Seattle as the receiving location.
9.
Select the subinventory from the list of values.
10. (M) File> Save.

Viewing Returns
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(N) Transactions > Receiving > View Receiving Transactions

12. (T) Customer.
13. Enter the Item number.
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14. Choose Find.
15. Choose Transactions.

Chapter 9 - Page 56
Agenda
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Chapter 9 - Page 57
Receiving Reports
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Further Help
For more information on expected receipts or overdue supplier shipments, refer to the Online
Help:
Reports and Processes
../ Expected Receipts Report
../ Overdue Supplier Shipments Report
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Chapter 9 - Page 58
Agenda
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Chapter 9 - Page 59
Move Orders Process Flow
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Move Order Requisition Process Flow

Move orders can be created manually or automatically. Oracle Order Management
automatically creates them to support the staging of Picking Waves.
Move Orders can be one of the following three types:
Requisition Move Order - to relocate material or adjust perpetual inventory records
Inventory Replenishment Move Orders - to refill depleted inventory locations
Pick Release Move Orders - to replenish forward pick locations
Move orders will be manually or automatically generated, depending on the source of the
transaction.
Move orders must be assigned detailed source and destination locations, or used to identify
shortages for further action. This process is called Allocating, and must occur for all move
orders.
If the material could not be fully sourced because of a lack of available quantity, the Move
Order is in backorder and the unsourced balance can be re-released at a later time.
Move instructions can now be issued for available quantities either through printing of a paper
pick slip or transmission to a mobile device through Move Order APIs.
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Chapter 9 - Page 60
Move Order Requisition Approval Process
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Move Order Approvals

If approvals are required on Move Order requisitions, Oracle Inventory manages the approval
process through Oracle Workflow.
When the requisition is created, the workflow approval process sends a notification to the item
planner that a move order requisition line is awaiting approval.
Timeout Period is an organization-level attribute that determines the number of days the order
can wait for an approval action. After one timeout period, if the order is still not approved or
rejected, a reminder notice is sent to the item planner. After another timeout period the order is
automatically approved or rejected depending on the move order timeout action you determine
at the organization level.
The Move Order Timeout Period and Timeout Action are both inventory organization
parameters. These inventory parameters do not override any periods set up by Oracle
Workflow.
The Item Planner is an item attribute. If no planner is specified for the item, the requisition line
is automatically approved.
If no approvals are required in your organization, set the Timeout Period to 0 and the timeout
action to Approve Automatically.
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Chapter 9 - Page 61
Once the order line is approved, notices are sent to a notification list that is attached to the
source and destination subinventories to let the subinventory planners know that material will
be moved to or from their areas.
Note: Replenishment and pick wave move orders are pre-approved.
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Chapter 9 - Page 62
Benefits of Managed Material Flow in a Facility
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Benefits of Managed Material Flow

Oracle Inventory uses move orders to distinguish the user roles that should manage inventory
levels from those who carry out actual transactions. The following are the benefits of managed
material flow through move orders:
Quick Response - You can now request a transaction and forward the request on to a
picker for actual transaction execution. The request is tracked in Oracle Inventory to
minimize inaccurate information transfer. When required, replenishment mechanisms
automatically generate move orders without the intervention of an item planner for
simple cases where the material is drawn from within the facility. This results in faster
inventory replenishment with minimal human intervention.
Warehouse Visibility - Move orders use inventory picking rules to determine where to
source material for a subinventory or Move Order Issue. This ensures that the same
mechanisms created to rotate material properly for deliveries is used to rotate material
within the facility. It also uses the material visibility in Oracle Inventory to automatically
suggest source locations, lots, and so on.
Tracking - Move orders can be transacted through Application Program Interfaces
(APIs). APIs enable you to use mobile devices to transact, giving you better material
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Chapter 9 - Page 63
visibility and accuracy. Move orders can also be created to cross-dock material to staging
locations.
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Chapter 9 - Page 64
Move Order Source Types
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Move Order Source Types

Oracle Inventory provides three types of move orders:
Move Order Requisitions
Replenishment Move Orders
Pick Wave Move Orders
The move order type refers to the entity that created the move order. For all move orders, the
final result is one of the two supported transactions: subinventory or move order issue.
Move Order Requisition
The requisition is a manually generated request for a move order. You can generate requests
for subinventory transfers or move order issues. The requisition can optionally go through an
Oracle Workflow approval process before it becomes a move order. If no approval process is
used, the requisition becomes a move order immediately.
Replenishment Move Order
These move orders are generated automatically. For example, kanban cards can create a
replenishment move order where the pull sequence calls for a subinventory transfer (intraorganization kanbans), or by min-max planned items where the items replenishment source
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Chapter 9 - Page 65
(set at the item-subinventory level) is another subinventory. In this case, the min-max or
replenishment count report automatically generates a move order. Replenishment move orders
are pre-approved and ready to be transacted.
The type of move order generated depends on the replenishment source:
If the replenishment source is a supplier, then a move order requisition is created.
If the replenishment source is another inventory organization, then an internal requisition
is created.
If the replenishment source is a subinventory then a replenishment move order is created.
Note that the source subinventory must be set up at the item subinventory level. For the
min-max report to generate a move order, the report must be generated at the
subinventory level.
For kanban to generate a move order, the pull sequence source type must be set to Intra-org.
Pick Wave Move Order
The pick release process generates move orders to bring the material from its source location in
stores to a staging location, which you define as a subinventory in Oracle Inventory. This
transaction is a subinventory transfer.
These move orders are generated automatically by the Oracle Shipping Execution pick release
process.
These orders are pre-approved and ready to transact. Pick slips and other shipping and
inventory reports will also be available with Oracle.
WIP Issue Move Orders
An optional process in Oracle WIP allows you to run pick release for the components of a
range of jobs or schedules. This process creates move orders to either directly issue the
material to WIP, or to move the material to the backflush locator. These orders are
automatically approved, the picking rules are sued to allocated material for the job, and pick
slips can be printed for warehouse users.
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Chapter 9 - Page 66
Move Order Components
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Move Order Components

Move Order Header
The move order header contains the move order source type. This refers to the entity that
created the move order. An order could be a pick wave for sales order picks, a replenishment
type move order, a requisition for subinventory transfer, and so on. The move order header also
contains the default source and destination if available, the order number, and the requested
date.
Move Order Lines
Move order lines are the requests on a move order. They contain the item, requested quantity,
the completed quantity (if the move order has been partially fulfilled), and a source and
destination, if known. The move order lines also include any project and task references, if the
organization is project-manufacturing enabled. You can also enter specific serial or lot
numbers on the move order lines.
Move Order Line Details
The line details are the inventory transactions that will occur to fulfill a particular request line
(move order line). If the material is locator-, lot-, or serial-controlled, this information is filled
in at the line detail level. These details are automatically filled in by Oracle Inventory using the
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Chapter 9 - Page 67
inventory picking rules and the item-transaction defaults for destination locators or you can
manually fill in the details. You can edit these details prior to transaction.
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Chapter 9 - Page 68
Move Order Allocating
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Allocating Move Orders

Allocating is the process in Oracle Inventory that uses picking rules and item transaction
defaults to suggest move order line details to fulfill a move order line. The line details are the
inventory transactions that must be fulfilled to complete the move order allocation. You can
consider the allocating process as a sourcing process. Allocating occurs when you click the
Allocate button in the Transact Move Orders window.
Suggesting Sources
Oracle Inventory uses the picking rules you set up at the organization or organization-item
level to suggest source locators, revisions, and lots to source the material in order to fulfill a
move order allocation.
Suggesting a Destination
The picking rules only suggest source locations. If the destination subinventory is locatorcontrolled and no locator is specified on the move order line, Oracle Inventory generates a
suggestion based on the item subinventory locator default you set up for move orders. You can
set up a default locator for each item that you want to move around the warehouse on a move
order. This is not the same default type that you would use for receiving or shipping.
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Chapter 9 - Page 69
You have two choices in transacting the move orders to transfer the material to the destination
location:
Automatic Pick Confirmation: The move order is transacted instantly after the order is
allocated without any further human intervention. On-hand inquiries will show the
material in staging. You can then perform ship confirmation.
Manual Pick Confirmation: You can confirm the pick of the move order allocation. You
can also update any picking details such as the source locations, lots or serials and to
report shortages or inventory inaccuracies and allow the system to generate more pick
suggestions. Reporting inventory inaccuracies enables you to request a cycle count in the
inventory area where the material was not found if so desired.
Oracle Shipping
Oracle Shipping provides two choices for when and how you can fill in the line details. These
choices are made by setting up an organization parameter but can be overridden at pick release.
Auto allocate - the allocating process is done at pick release instantly after the move
order is created. No more human intervention is needed and the pick slip can be printed
automatically.
Pick release only creates move orders but does not fill in the line details. You must
navigate to the move order form after pick release and click on the Allocate button. This
option allows warehouse managers to determine when to release the pick to the floor and
might be a better solution for implementations running a global order entry with
distributed warehouse management and/or shipping. In these cases, orders can be
released to regional warehouses from the central order management location in advance
and individual warehouses can schedule picks closer to actual ship time.
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Chapter 9 - Page 70
Generate Move Orders
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Generating Move Order Requisitions

You use the Move Orders window to create move order requisitions by specifying item,
quantity, source, destination, locations, and other order information.
For each move order, an order number is required. A number is defaulted for you if you leave
the field without entering a value.
In the Default region, you can set up values that default to the lines. Default fields are not
required. You can set up a default transaction type of either Subinventory Transfer or Move
Order Issue. A Move Order Issue is the same as an account issue. You can specify the Move
Order Issue for accounts and account aliases. You can define a default source subinventory,
destination subinventory or account, for Move Order Issues, as well as the requested delivery
date (date required) for the material.
The lines are the actual material requests for the move order. In the Item tabbed region, you
can specify the item, revision, and quantity, and you can update the delivery date for that item.
A move order requisition manually requests subinventory transfers or Move Order Issues.
These requests can optionally go through an approval process before they become move orders
that are ready to be sourced and transacted. The approval process does not include dollar
amount constraints.
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Chapter 9 - Page 71
Defining Project and Task Information

If the organization is a project manufacturing-enabled organization, you specify the project and
task in the Project and Task tabbed region.
Defining Source Information
You use the Source tabbed region to specify the subinventory from which to draw the material.
This field defaults from the header-level default block but can be overridden if necessary. You
can also specify the locator, lot, and serial numbers if known to use for the transactions. Only
the subinventory field is required. If you do not know from where the items should come, the
On Hand button takes you to an on-hand inquiry window for that item to locate the material
within your organization.
Defining Destination Information
You use the Destination tabbed region to specify the subinventory or account for Move Order
Issues that the material should be delivered. This field defaults from the header-level default
block but can be overridden if necessary. You can also specify the destination locator for
subinventory transfer move orders if known.
Defining Control Information
You use the Control tabbed region to request a subinventory transfer or Move Order Issue at
the line level by selecting a transaction type. This field defaults from the header-level default
block but can be overridden if necessary. You can optionally specify a reason and reference
code on the inventory transactions.
(Help) Oracle Manufacturing Applications > Oracle Inventory >
Transactions > Overview of Move Orders
.. / Generating Move Order Requisitions
../ Generating Replenishment Move Orders
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Chapter 9 - Page 72
Item Allocation
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Allocating Items
Reservation
A reservation is a line in the inventory reservations table. In the reservation table, supply, such
as on-hand inventory, is matched with a demand source such as a sales order. A reservation is
used to earmark your inventory for a particular use.
Pending Transaction
A pending transaction is a transaction that Oracle Inventory expects to occur shortly, but
confirmation of the transaction has not yet been recorded. This is a material pick that has not
yet been completed. Move order line details are an example of the pending transaction. A pick
slip may have already been printed, but the picker has not yet indicated that they have
deposited the material in the destination location.
Neither reserved material nor a pending transaction quantity is included in any availability
calculation for the source location.
You should not allocate a move order line too soon in the business process, because the
allocating process for a move order creates pending transactions and removes that quantity
from an availability picture. Allocating should not be done until you are ready to print the pick
slip and move the material.
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Chapter 9 - Page 73
Transact Move Orders
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Transacting Move Order Lines

Use the Transact Move Order Line Allocations window to view, allocate, transact move order
allocations, view the move order line details, and transact move order allocations. Transacting
move orders will post all movement activity immediately for the selected move order line and
its related details.
Transact
Once the lines have been allocated, you can commit all of the transactions for a single move
order line by selecting the lines you want to transact and clicking the Transact button. You can
save and exit the move order line details without transacting if you need to print a pick slip
report. This enables you to transact each detail line before or after picking the material.
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(Help) Oracle Manufacturing Applications > Oracle Inventory >Transactions > Overview of
Move Orders > Transacting Move Orders

Chapter 9 - Page 74
Guided Demonstration Overview: Transacting Move orders
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Chapter 9 - Page 75
Guided Demonstration - Transacting Move Orders

Create an Item
1.
(N) Items >Master Items.
2.
Create an Item using the following information:

Item:
CM11445
Description:
Mother Board
3.
(M) Tools > Copy from.
4.
Enter Finished Good in the template field.
5.
Choose Apply.
6.
Choose Done.
7.
(T) Inventory.
8.
Use the following information to enable the Locator Control attribute:

Locator Control:
Dynamic Entry
9.
(M) File > Save.
10. (M) Tools > Organization Assignment.
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11. Enable item CM11445 in the following organizations:

M1 Seattle
M2 Boston
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Receive the Item
14. (N) Transactions > Miscellaneous Transaction

Type:
Miscellaneous Receipt
Account:
Miscellaneous
16. Choose Transaction Lines
17. Use the following information to complete a miscellaneous receipt:


Chapter 9 - Page 76
Item:
Subinventory:
Locator:
Quantity:
CM11445
FGI
1.2.1
500

Generate Move Order
20. (N) Move Orders > Move Orders
21. Use the following information to generate a move order:
Number:
001
Description:
Mother Board Move Order
Transaction Type:
Move Order Transfer
Source Subinventory:
FGI
Destination Subinventory:
Stores
Item:
CM11445
Quantity:
200
22. Choose Approve.
Transact Move Orders
24. (N) Move Orders > Transact Move Orders.
25. Find move order 001.
26. Choose View / Update Allocations.
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27. Use the following information to update the move order:

Source Subinventory Locator:
1.2.1
Destination Subinventory Locator:
1.1.2
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28. Choose Transact.

Chapter 9 - Page 77
Practice Overview: Transacting Move orders
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Chapter 9 - Page 78
Practice - Transacting Move Orders

Overview
In this practice you will generate and transact move orders.
Assumptions
You are skilled in Oracle navigation
You completed the Define Items practice
You completed the Locator controls practice
You completed the define subinventory practice
Tasks
Create an Item
Create an item using the following information.
Name:
##-1234
Template:
Purchased Item
Locator Control:
Dynamic Entry
Organizations:
M1, M2
Receive your item
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Create a miscellaneous receipt for 500 pieces of your item and receive them into at least two
locators of your ##FGI subinventory.
Create a Move Order
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Create a move order for your item and move 10 pieces from the ##FGI subinventory to the FGI
subinventory using the following information:
Number:
##-1
Description:
Team ## Move order
Transaction Type:
Move Order Transfer
Item:
##-1234
Transact Move Order
Verify your move order, and make changes such as locator control. When complete transact your
move order.

Chapter 9 - Page 79
Verify the Results

Verify your transaction was processed.
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Chapter 9 - Page 80
Solution Transacting Move Orders

Create an Item
1.
Navigate to the Master Item window.
(N) Item > Master Items
2.
Define an item using the following information:

Name:
##-1234
Description:
Move Order Item
3.
Apply the Purchased Item template
(M) Tools > Copy From.
Select the Purchased Item Template from the LOV.
Select Apply.
Select Done.
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Chapter 9 - Page 81
4.
Enable Inventory Control.
5.
Dynamic Entry
Save your work.
6.
(T) Inventory
Locator Control:
(M) File > Save.
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Assign your item to organizations M1 and M2.
(M) Tools > Organization Assignment.
Enable item in M1 Seattle and M2 Boston.
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Chapter 9 - Page 82
7.
Save and Close window.
(M) File > Save.
Receive Your Item

8.
Receive 500 pieces of your item into stock.
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(N) Transactions > Miscellaneous Transaction

Type:
Account: Miscellaneous (From LOV)
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Select Transaction Lines.
Enter the following information in the subsequent fields:

Item:
##-1234
Subinventory:
##FGI
Locator:
##.1.1
Quantity
250
Item:
Subinventory:
Locator:
##-1234
##FGI
##.1.2

Chapter 9 - Page 83
Quantity
9.
250
(M) File > Save.
Create a Move Order

10. Navigate to the Move Order window.
(N) Move Orders > Move Orders
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11. Define a Move Order Using the following Information:

Number:
##-1
Description:
Team ## move order
Transaction Type:
Move Order Transfer
Source Subinventory: ##FGI
Item:
##-1234
Quantity:
10

Chapter 9 - Page 84
12. (T) Destination.

Subinventory:
FGI
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Chapter 9 - Page 85
13. Save and Close window.
Choose Approve.
Transact Move Order
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14. Navigate to the Transact Move Orders window.
(N) Move Orders > Transact Move Orders
15. Find your move order.
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Numbers:
##-1
Choose Find.

Chapter 9 - Page 86
16. Update your Move Order.
Select View/Update Allocations
Verify/Update the following:

Subinventory:
##FGI
Locator:
##.1.1
To Subinventory: FGI
To Locator:
1.2.1
Quantity:
10
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Chapter 9 - Page 87
17. Choose Transact.

18. (M) File > Close Form
Verify the Results
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19. View the results to verify the transaction processed.
(N) On-hand, Availability > On-hand Quantity

Subinventory:
FGI
Locator:
1.2.1
Item:
##-1234
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Chapter 9 - Page 88
Select Find.
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Chapter 9 - Page 89
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Chapter 9 - Page 90
Agenda
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Chapter 9 - Page 91
Transactions Using a Mobile Device
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Transactions Using a Mobile Device

You can perform inventory transactions using a mobile device. You can perform the following
transactions:
Alias Receipt
Inventory Issues
Subinventory Transfers
Move Orders
Organization Transfers
PO
RMA
Intransit Shipment
Internal Requisition
Receipts
Sales Orders
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Chapter 9 - Page 92
Internal Order Shipments

Cycle Count
Physical Inventory Entries
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Chapter 9 - Page 93
Guided Demonstration Overview: Mobile Transactions
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Chapter 9 - Page 94
Guided Demonstration - Mobile Application Inter-organization

Transfer
1.
Enter telnet esxxxx.oracle.com 7070 in the Windows Run dialog box, where xxxx is the
instance number.
2.
Select Default from the Device List.
3.
Enter your user name and password. Note that the responsibility, Materials & Mfg must
be assigned to your user name.
4.
If there is more than one responsibility assigned to your user name, select Materials & Mfg
from the Responsibilities list.
5.
Select Inventory from the Materials & Mfg menu.
6.
Select Transfers.
7.
Select Org Transfer.
8.
Enter M1 as the Org code.
9.
Enter M2 as the To Org.
10. Enter Intransit Shipment as the transaction type.

11. Enter 001 as the shipment number.
12. Enter AS18947 as the item to ship.
13. Enter FGI as the from subinventory
14. Enter 5 as the quantity to transfer.
15. Select Done.
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Chapter 9 - Page 95
Practice Overview: Mobile Transactions
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Chapter 9 - Page 96
Practice - Mobile Transactions

Overview
In this lab you will transfer items from one organization to another.
Assumptions
Tasks
Interorganization Transfers Using the Mobile Interface
Use the Mobile interface to conduct an interorganization transfer using the following
information:
From Organization:
M1 Seattle
To Organization:
M2 Boston
Item:
your choice
Quantity:
5
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Chapter 9 - Page 97
Solution Mobile Transactions

Interorganization Transfers Using the Mobile Interface
Responsibility = Materials & Mfg
1.
Start the Telnet session.

Windows Start menu > Run
Enter telnet esxxxx.oracle.com 7070 in the Run dialog box, where xxxx is the
instance number.
2.
3.
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Enter your user name and password. Note that Materials & Mfg responsibility must be
assigned to your user name.

Chapter 9 - Page 98
4.
5.
If more than one responsibility had been assigned to your user name, then select Materials &
Mfg from the list.
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Select Inventory from the Materials & Mfg Menu.

Chapter 9 - Page 99
6.
7.
Select Transfers from the Inventory Menu.
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Select Org Transfer from the Transfers Menu.

Chapter 9 - Page 100
8.
Enter your item to transfer using the following information:

Org Code:
M1
To Org:
M2
Trx Type:
Intransit Shipment
Shipment Number:
##
Item:
Your Choice
From Sub:
##FGI
Quantity:
1
To Sub:
Stores
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9.
Select Done
Note: Use the down arrow to advance to Done.
10. Select Logout
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Agenda
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Managing Shipments
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Managing Shipments (Oracle Purchasing)

You can review and update intransit shipments between inventory organizations.
Shipment Visibility: You can access all incoming and outgoing shipments associated
with the current organization.
Shipment Header: You can update information pertaining to the shipment header such as
Ship-to Location and Number of Containers. If you change the Expected Receipt Date,
Oracle Purchasing updates Shipment Supply to reflect the new due date.
Shipment Lines: You can update information pertaining to the shipment lines such as
Expected Receipt Date, Receipt Routing, Packing Slip, and Note to Receiver. The receipt
routing that you specify in Maintain Shipments overrides routings specified at the item,
organization, or system levels.
Receiving > Managing Shipments
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Agenda
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Summary
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11i Replenishment Concepts

Chapter 10
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Chapter 10 - Page 1
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Chapter 10 - Page 2
Objectives
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Chapter 10 - Page 3
Agenda
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Chapter 10 - Page 4
Overview
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Course Overview
This module provides an overview of Oracle Inventory forecasting and replenishment methods.
(Help) Oracle Inventory > Inventory Planning and Replenishment > Overview of Inventory Planning
and Replenishment > Forecasting.
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Chapter 10 - Page 5
Overview of Inventory Planning
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Overview of Oracle Inventory

Inventory planning involves answering two questions:
When should you place a new order?
How much should you order?
Using the Oracle Inventory application, you can set up the following types of inventory
replenishment plans:
Min-max planning
Reorder-point planning
Kanban replenishment planning
Replenishment counting (for non-quantity tracked subinventories)
After you select the replenishment method that you want to use, Oracle Inventory concurrent
programs populate the requisition interface.
Oracle Inventory planning interfaces with Oracle Purchasing, and indirectly with Oracle Order
Management.
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Chapter 10 - Page 6
Order Planning
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Replenishment Considerations
Before you replenish your inventory, you should consider the following:
Order time
Order size
Planning method
When to Order
Typically, you should order when the on-hand quantity plus incoming supply minus demand is
less than the specified minimum inventory level. On-hand quantity refers to what you currently
have in stock. Supply represents on-hand stock plus inventory coming into the organization.
Demand represents the need for a particular item.
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Chapter 10 - Page 7
How Much to Order
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How Much to Order

Ideally, you should order a quantity that balances the cost of placing an order with the cost of
managing inventory while covering expected demand. After you determine the amount to
order, you can create a requisition to replenish inventory from another organization or a
supplier. Note: Suppliers may have minimum order quantities.
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Chapter 10 - Page 8
Replenishment Process for Intra-Org Supply Sources
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Chapter 10 - Page 9
Replenishment Process for Supplier Supply Sources
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Replenishment Process for Inter-Org Supply Sources
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Replenishment Process for Product Supply Sources
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Agenda
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Overview of Oracle Inventory Forecasting
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Inventory Planning and Forecasting

Forecasts generated by Oracle Inventory are based on historical transaction activity only. When
creating a forecast, you can select the type of transactions that you want to use. You can also
specify how far into the future that you want to forecast demand.
After you complete a forecast, you can use it to determine reorder-point planning. You can also
load forecasts into the master schedule, which is a component of the Oracle Material
Requirements Planning (MRP) application.
Note: You can manually create forecasts using Oracle Inventory or Oracle MRP. There are no
constraints for manually created forecasts. So, manually created forecasts can be based on
transaction activity other than historical data.
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Forecast Types
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Forecast Types
Forecast generation uses mathematical algorithms to calculate a prediction of future demand.
You can calculate estimated future demand for items using historical data and focus or
statistical forecasting techniques. You can create multiple forecasts and group complementing
forecasts into forecast sets. Oracle Inventory supports the following forecast types:
Focus
Statistical
Focus forecasting enables you to simulate various methods of calculating demand so that you
can select the best forecasting model. Statistical forecasting enables you to use detailed history
and applies weighted factors to exponentially smooth the data. Statistical forecasting also
enables you to apply exponentially weighted trend and seasonality factors to predict demand.
You typically use Focus forecasting to produce single period forecasts, whereas you can use
Statistical forecasting to forecast any number of periods into the future.
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Agenda
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Oracle Inventory Replenishment Methods
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Oracle Inventory Replenishment Methods

With Oracle Inventory, you can set up specific replenishment methods to help you decide the
size, timing, and amount to order. Oracle Inventory supports the following replenishment
methods:
Reorder-Point-planning
Min-Max planning
Kanban replenishment
Replenishment counting
For more information see: (Help) Inventory Planning and Replenishment > Overview of
Planning and Replenishment.
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Replenishment Methods Levels
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Oracle Inventory Replenishment Methods (continued)

Based on the replenishment method that you select, you can perform replenishment planning at
the organization or subinventory level. The table in the slide summarizes the levels at which
you can perform a specific replenishment method.
Note that Kanban is done at the locator level. Also Periodic Automatic Replenishment which is
a type of Replenishment Counting is also done at the locator level.
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Safety Stock
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Safety Stock
Safety Stock is a base level of inventory from which Oracle inventory performs planning. In
other words, the item is planned as if the safety stock quantity for the period is the zero
inventory balance of the item. This ensures that the safety stock quantity remains in inventory
to cover any fluctuations in demand.
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Economic Order Quantity
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Economic Order Quantity

The economic order quantity (EOQ) is a type of fixed order quantity that determines the
amount of an item to be purchased or manufactured at one time. The intent is to minimize the
combined costs of acquiring and managing inventory.
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Overview of Reorder-Point Planning
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Reorder-Point Planning Overview

As shown in the graphic, with reorder-point planning, you order a quantity when the quantity
falls to a predetermined reorder-point. Ideally it is best to reorder at some point before
inventory levels fall into the safety zone. Safety stock typically provides a buffer from which to
fill orders between reorder-points. At the end of the lead time, the onhand quantity should
equal the safety stock.
The essential feature of reorder-point planning is that it projects what the stock level will be
based on forecast demand and no visibility of sales ordersat the end of the item's lead time.
This projection is then used to decide whether or not the reorder-point has been reached.
The reorder-point is calculated by adding expected demand during lead time to safety stock.
You perform reorder-point planning for the entire organization. You can use reorder-point
planning for items under independent demand. That is, demand for items (or materials) that are
independent of the demand for other items (or materials). When you define an item, you can
specify reorder-point planning as the inventory planning method.
For more information see: (Help) Oracle Inventory > Inventory Planning and Replenishment >
Overview of Reorder Point Planning.
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Overview of Min-max Planning
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Min-max Planning Overview

Min-max planning is a method of inventory planning that determines how much to order based
on user-defined minimum and maximum inventory levels. In contrast to reorder-point
planning, min-max planning is not based on demand projections and does not consider lead
time. With Oracle Inventory, you can perform min-max planning at the both the organization
and the subinventory levels. To perform organization-level min-max planning for an item, you
must specify organization-level minimum and maximum quantities. Min-max planning is
typically used to control low value inventory items that do not need great control. To perform
subinventory-level min-max planning for an item, you must specify subinventory-level
minimum and maximum quantities.
Overview of Min-Max Planning.
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Overview of Kanban Replenishment
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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 with relatively constant demand and
medium-to-high production volume.
Kanbans represent replenishment signals that are manual and highly visible, such as a colorcode card that moves with the material, a light that goes on when replenishment is required, or
an empty bin that is moved to the supply location to trigger replenishment.
Kanban systems typically provide support for external devices, such as bar code readers to read
kanban cards and trigger a replenishment signal.
Kanban System Features
Kanban systems include the following characteristics:
Close cooperation between the users and the supply channel
Short re-supply lead times
Relatively small quantities reordered at a time
Relative frequent ordering
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Overview of Kanban Replenishment.
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Overview of Replenishment Counting
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Replenishment Counting
Replenishment counting enables you to perform counts for non-tracked subinventories and
then direct Oracle Inventory to check these counts against the minimum quantities that you
specified.
A non-tracked subinventory is an expense subinventory for which Oracle Inventory does not
maintain on-hand quantity information. When you move valued material to a non-tracked
subinventory, Oracle Inventory automatically charges the appropriate expense account and
discards that quantity. Non-tracked subinventories typically store items of low value, such as
office stationery. You can also use replenishment counting if you do your own planning. In this
case you may order either a specific quantity or the maximum quantity specified in the MinMax values. Non-tracked subinventories might include hospital storerooms, where there is no
opportunity to record accurate and timely issue-transaction information.
Overview of Replenishment Counting.
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Overview of PAR Counting
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Periodic Automatic Replenishment (PAR) Counting

PAR counting is replenishment counting done at the locator level in a subinventory.
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Agenda
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Mobile Replenishment Count Overview
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Mobile Device Replenishment Count

Oracle Mobile Materials Management provides windows to perform mobile replenishments.
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Agenda
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Summary
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11i Replenishment
Fundamentals
Chapter 11
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11i Replenishment Fundamentals

Chapter 11 - Page 1
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Chapter 11 - Page 2
Objectives
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Chapter 11 - Page 3
Agenda
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Chapter 11 - Page 4
Overview
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Chapter 11 - Page 5
Agenda
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Chapter 11 - Page 6
Focus Forecasting
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Describing Focus Forecasting Methods

Focus forecasting simulates five forecast methods to determine the best forecasting model to
use. An example of each focus forecast method is shown in this slide and on the following
pages. Each method generates a forecast for the current period based on demand from
previous periods.
Note: If not using daily time buckets, focus forecast methods 1 and 4 require at least one year
of historical data. When you use daily time buckets, a week is used instead of a year in
calculating Models 1 and 4. Fifty-two week years are presumed in yearly calculations with
weekly time buckets. This means that the same week last year is taken to be the week fifty-two
weeks before the current week.
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Chapter 11 - Page 7
Focus-Forecasting (continued)
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Chapter 11 - Page 8
Focus-Forecasting (continued)
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Chapter 11 - Page 9
Using Focus Forecasting
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Determining the Best Forecast Method

The system uses the absolute percentage error (APE) to determine the best forecasting method
to use. The APE is the difference between the actual demand and the forecast associated with
the actual demand. You calculate the APE using actual and forecast demand. Oracle
Inventory selects the model with the smallest APE to calculate the current period forecast.
The following formula determines the APE:
APE = ( |actual demand - forecast demand| ) / actual demand
Note: Focus forecasting provides a one-period forecast. If you request a focus forecast for
multiple periods, then Oracle Inventory uses the forecast of the first period for all of the
forecast periods in the request. If actual demand is available for the current period, then you
can recompile the focus forecast to update the forecast.
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Focus Forecasting Example
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Example of Focus Forecasting

To evaluate which forecasting model produced the best forecast, last period, the absolute
percentage error (APE) is calculated for the five forecasts. The forecast model with the
smallest APE is then chosen to calculate the forecast for the next period.
In this example, to determine the best forecast model to use, you would first calculate the
forecast and APE for March 2001 for each of the five focus forecasting methods. Then, to
forecast demand for April 2001, select the the focus forecast method that yielded the smallest
APE.
Forecast Model 4 represents the best model for March of 2001, because the APE associated
with this forecast is only 5 percent compared to the higher APEs for Models 1, 2, 3 and 5.
Note: This example shows the calculation for Method 4 only.
Forecast = actual demand in the same period last year (actual demand in the previous period
this year / actual demand in the previous period before the same period last year)
Calculating the Forecast and APE for Model 4:
March 2001 = March 2000 (February 2001 / February 2000)
= 250 (255 / 210)
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= 303.57142, rounded to 304

APE for model 4:
APE = (| actual demand - forecast demand |) / actual demand
= (|290 - 304|) / 290
= 0.05 or 5%
Calculating the Demand Forecast for April 2001:
Because 5% is the smallest error of the five models, you would select Model 4 to calculate the
April 2001 forecast.
April 2001 = April 2000 (March 2001 / March 2000)
= 260 (290 / 250)
= 301.6000 or 302
Note: Results have been rounded to the nearest whole number.
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Statistical Forecasting
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Exponential Smoothing Forecast (ESF)
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Describing the Exponential Smoothing Forecast (ESF)

Exponential smoothing uses the forecast from the prior period and adds an adjustment to obtain
the forecast for the next period. With ESF, demand is forecast by averaging all of the past
periods of actual demand. This forecasting method weighs more recent data to give it greater
influence over the forecast results than older data.
You can calculate the current period forecast by using a weighted average of the most recent
and forecasted demand. The alpha factor, also called the smoothing constant, is multiplied by
the forecast error to determine the adjustment. You can specify an alpha factor between zero
and one. The larger the alpha factor, the less impact the older data has on the new forecast.
The current forecast is equal to the old forecast, plus a portion of the forecast error from the
previous period. You can use this method when trend or seasonality patterns do not exist.
Example of Exponential Smoothing Forecasting
This example shows the ESF calculations for a 9-step ahead forecast assuming an alpha ()
value of 0.2, At-1 of 270, and ESFt-1 of 288.
So the forecast for period 9 for the assumed values of , At-1, and ESFt-1 is:
ESFt = At-1 + (1 - ) ESFt-1
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ESF9 = 0.2 A8 + (1 0.2) ESF8

= 0.2 270 + 0.8 288
= 284.4
Note: ESF always lags behind the trend by at least one period.
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Trend-Enhanced Forecast (TEF)
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Describing the Trend-Enhanced Forecast (TEF)

For longer-range forecasts, you can use the trend-enhanced forecast to estimate the amount of
persistent change in basic demand from period to period.
TEF is based on the exponential smoothing factor (), but also considers the trend ().
Both the exponential smoothing and trend values closer to zero are weighted towards the past
trend and values closer to one are weighted more heavily towards the current trend.
Example of Trend-Enhanced Forecasting
This example shows the effect of adding the trend enhancement to the ESF calculation. With
the trend-enhanced forecast, you can reflect the current trend in a forecast. The trend-enhanced
forecast for period 9 is derived by performing the following calculations:
Determining base value
Updating the trend index
Adding the two for the current period trend-enhanced forecast
This example shows the TEF calculations for a 9-step ahead forecast for the following assumed
values:
= 0.2
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= 0.1
A8 = 270
TEF8 = 306
B8 = 287
R8 = 19
Determining the Base Value
Bt = At-1 + (1 ) TEFt-1
B9 = 0.2 A8 + (1 0.2) TEF8
= 0.2 270 + 0.8 306
= 298.8
Updating the Trend Index
Rt = (Bt - Bt-1) + (1 - ) Rt-1
R9 = 0.1 (B9 - B8) + (1 - 0.1) R8
= 0.1 (298.8 287) + 0.9 19
= 18.28
Adding the Base and Trend Index to determine the Period 9 Trend Forecast
Recall that the calculated base value was 298.8 and the trend index was 18.28.
TEFt = Bt + Rt
TEF9 = B9 + R9
= 298.8 + 18.28
= 317.08 = Period 9 Forecast
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Season-Enhanced Forecast (SEF)
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Describing the Season-Enhanced Forecast (SEF)

You can use seasonality indexes to indicate the degree of seasonal variation for a product. You
can specify a seasonality factor to estimate how much demand during the season will be above
or below the average demand for the product.
Values closer to zero give more weight to past seasonal indexes, and values closer to one one
give more weight to current seasonal indexes. This method produces a more consistent pattern
of seasonal demand from period to period over the course of the forecast.
You can use SEF to track changes in demand that result from annual promotions and expected
peaks in demand. For example, you might use SEF to track the demand of childrens clothing
purchases at the beginning of the school year versus the demand for childrens clothing at other
times of the year.
Example of Season-Enhanced Forecasting
With highly seasonal goods such as winter clothing and holiday cards you should take seasonal
demand variations into consideration. To do this, you must first enter seasonality indices for
each period indicating how much demand during the period is above or below average. A
seasonality index of 2 indicates that demand during this period is twice the average demand.
An index of 0.5 indicates that demand during this period is half the average demand. An index
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of 1 means that the demand is average during this period. If the average seasonality index
entered is not equal to 1, then Oracle Inventory normalizes the indices so that the average
seasonality indices do equal 1.
The same kind of logic that is used for adjusting for trend in the TEF is used to adjust for the
seasonal variations. Demand is first deseasonalized by dividing by the seasonality index for
that period and then exponential smoothing is used to produce a new base value. The base
value is then multiplied by the seasonal index for the period being forecasted to produce the
season-enhanced forecast (SEF).
To determine seasonality index, you perform the following calculations:
Adjust the last periods seasonality index
Calculate the forecast base value
Multiply the forecast base value by the period seasonality index
This example assumes the following:
= 0.2
= 0.3
A8 = 270
B8 = 238
S7 = 1.15
Adjust The Last Periods Seasonality Index
St = (At / Bt) + (1 ) St-1
S8 = 0.3 (A8 / B8) + (1 0.3 ) S7
= 0.3 (270 / 238) + 0.7 1.15
= 1.145
Calculate the Forecast Base Value
Bt = (At-1 / St-1) + (1 ) Bt-1
B9 = 0.2 (A8 / S8) + (1 0.2) B8
= 0.2 (270 / 1.145) + 0.8 238
= 237.56157
Multiply the Forecast Base Value by the Period 8 Seasonality Index
SEFt = Bt St-1
SEF9 = B9 S8
= 237.56157 1.145
= 272.00799
Note: After determining period 9 results, you can calculate period 9s seasonality index and
then forecast for period 10.
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Trend- and Season-Enhanced Forecast (TSEF)
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Describing the Trend- and Season-Enhanced Forecast (TSEF)

The Trend- and Season-Enhanced forecast combines the trend and seasonal methods to
incorporate both types of demand. With TSEF you specify a trend factor as well as a
seasonality index.
Example of Trend- and Season-Enhanced Forecasting
Despite the seasonal adjustments made in the SEF, a trend element may remain in the forecast
base, B. The TEF and the SEF can be combined to derive a trend- and season-enhanced
forecast (TSEF). The TSEF uses all three smoothing factors: alpha (), beta ( ), and gamma (
).
As with the season-enhanced forecast, you calculate the new period 8 seasonality index as soon
as period 8 actual demand is determined.
To calculate the trend- and season-enhanced forecast for period 9, you perform the following
calculations:
Calculate the period 8 seasonality index
Calculate the period 9 base value
Calculate the new trend factor
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Add the base and trend factors together and multiply by the seasonality factor to get the
period 9 trend- and season-enhanced forecast
For this example, assume the following values:
Smoothing constant, = 0.2
Trend smoothing constant, = 0.1
Seasonality smoothing constant, = 0.3
A8 = 270
B8 = 255
R8 = 10
S7 = 1.15
Calculating the Period 8 Seasonality Index
St = [At / (Bt + Rt)] + [(1 ) St-1]
S8 = 0.3 [A8 / (B8 + R8)] + [(1 0.3 ) S7]
= 0.3 [270 / (255 + 10)] + (0.7 1.15)
= 1.11066
Calculating the Period 9 Base Value
Bt = (At-1 / St-1) + (1 ) (Bt-1 + Rt-1)
B9 = 0.2 (A8 / S8) + (1 0.2) (B8 + R8)
= 0.2 (270 / 1.11066) + 0.8 (255 + 10)
= 260.6197
Calculating the New Trend Factor
Rt = (Bt Bt-1) + (1 ) Rt-1
R9 = 0.1 (B9 B8) + (1 0.1) R8
= 0.1 (260.6197 255) + 0.9 10
= 9.56197
Calculating the Period 9 Trend- and Season-Enhanced Forecast
TSEFt = (Bt + Rt) St-1
TSEF9 = (B9 + R9) S8
= (260.6197 + 9.56197) 1.11066
= 300.07997
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Forecast Setup and Maintenance
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Accessing Forecast Help

For an overview about the forecast setup components, access the online help topic: Overview
of Forecasting.
(Help) Oracle Inventory > Inventory Planning and Replenishment > Forecasting. The
Overview of Forecasting topic appears.
Accessing Forecast Setup Help
You can find information on forecast rules in the Overview of Forecasting topic.
To access instructions on how to set up a forecast, scroll to the bottom of the Overview of
Forecasting topic and click the Defining a Forecast link. The Defining a Forecast topic
appears. Follow the instructions provided to set up a forecast.
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Guided Demonstration Overview: Creating a Manual Forecast
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Guided Demonstration - Creating a Manual Forecast

Creating a Forecast Set
1.
(N) Planning > Forecasts > Sets
2.
Enter the following the information to create a forecast set:

Forecast Set:
FG Set
Description:
Finished Goods forecast set
Bucket Type: Weeks
Forecast:
FGI
Description:
Finished Goods forecast
3.
(M) File > Save.
4.
Setting Up Forecast Entries

5.
(N) Planning > Forecasts > Entries
6.
(M) View > Find
7.
Select the FG Set forecast set.
8.
Enter the following forecast entry information

Item:
AS18947
Date:
Todays Date
End Date:
1 week in advance.
Current:
1000
Item:
AS18947
Date:
1 week in advance
End Date:
2 weeks in advance
Current:
2000
Item:
AS18947
Date:
2 weeks in advance
End Date:
3 weeks in advance.
Current:
3000
9.
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(M) File > Save.

Viewing Forecast Quantities

11. (N) Planning > Forecasts > View Entries
12. (M) View > Find.
13. Select the FG Set Forecast set.
14. Choose Bucketed
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Practice Overview: Creating a Manual Forecast
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Practice - Creating a Manual Forecast

Overview
In this lab you will create a manual forecast for one of your items.
Assumptions
You are skilled in Oracle Navigation
You completed the define items lab.
Tasks
Define a Forecast Set
Define a forecast set using the following information:
Forecast Set Name:
##-FSET
Description:
Forecast Set for Team ##
Bucket type:
Weeks
Forecast Name:
##-FNAME
Forecast Description: Forecast Name for Team ##
Enter Forecast Entries
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Define forecast entries using the following information:

Forecast Item:
##-Item02
Quantities:
3000, 4000, 2000, 2500, 2000, 4500
View Forecast Quantities
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View the forecast quantities for your forecast.

Solution Creating a Manual Forecast

Define a Forecast Set
1.
Navigate to the Forecast Sets Window.
(N) Planning > Forecasts > Sets
2.
Define a forecast set using the following information:

Name:
##-FSET
Description:
Forecast Set for Team ##
Bucket type:
Weeks
3.
Enter the following information in the forecast field:

Name:
##-FNAME
Description:
Forecast Name for Team ##
4.
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(M) File > Save


Enter Forecast Entries

5.
Navigate to the Forecast Entries window.
6.
7.
(N) Planning > Forecasts > Entries
Open your forecast set
(M) View > Find
Select the ##-FSET forecast set
Enter your ##-Item02 in the item field.
Enter the following quantities in progressive weeks for the next 6 weeks. Start with the first
date field, and use the LOV for each available date.
3000
4000
2000
2500
2000
4500
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(M) File > Save
View Forecast Quantities

9.
Navigate to the Item Forecast Entries window.
(N) Planning > Forecasts > View Entries
10. Open your forecast set
(M) View > Find
Select the ##-FSET forecast set that you created from the LOV.
11. Select Bucketed to view your forecast quantities.
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12. Close window.
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Agenda
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Uses of Reorder-point Planning
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Uses of Reorder-point Planning

You can perform reorder-point planning for the entire organization.
You can use reorder-point planning for items under independent demand.
You can specify reorder-point planning as the inventory planning method when you
define an item.
You can use reorder-point planning for items that you do not need to control very tightly
and that are not very expensive to carry in inventory.
You can use reorder-point planning to decide when to order new quantity before using
safety stock.
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Reorder-point Planning: Safety Stock
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Reorder-Point Planning
Recall from Replenishment Concepts that with reorder-point planning, you order a quantity
when the quantity falls to a predetermined reorder point as shown in the above graphic.
Reorder-point planning uses the following pieces of information:
Safety stock
Replenishment lead time
Item demand
Order cost
Carrying cost
Safety Stock:
Safety stock is the quantity of an item that you plan to have in inventory to protect against
fluctuations in supply and demand. You can manually enter safety stock quantities or Oracle
Inventory can calculate a safety stock level based on an existing forecast for an item.
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Reorder-Point Planning: Lead Time
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Reorder-Point Planning (continued)

Replenishment Lead Time
Replenishment lead time is the total time between recognizing the need to reorder and the
receipt of items. Order processing lead times include the following components:
Preprocessing lead time
Processing lead time
Postproccessing lead time
Oracle Inventory calculates reorder point planning lead time by adding all the three
components.
Item Demand
The reorder point planning routine uses the average demand during the replenishment lead
time. Oracle Inventory uses forecast information to calculate average demand.
Timing of Reorders
You should reorder when the following is true:
(quantity on hand + quantity on order) < reorder point
where the reorder point = safety stock + [(lead time) (average demand during lead time)]
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Reorder-Point Planning: Reorder Quantity
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Reorder-Point Planning (continued)

Quantity of Reorders
The reorder quantity is equal to the Economic Order Quantity (EOQ). The EOQ is the quantity
that minimizes the total cost of ordering and storing inventory. Use the following formula to
determine the EOQ:
EOQ = SQRT {[2 (annual demand) (order cost)] / (annual carrying costs)}
Oracle Inventory calculates the EOQ by using annual demand from the forecast that you
provide when you perform reorder-point planning. The system also uses the order and annual
carrying costs that you specify when you define items.
You can constrain the reorder quantity by specifying the following information for each item:
Fixed-lot multiplier
Minimum order quantity
Maximum order quantity
Quantity on Order
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Quantity on order represents supply that you have not yet received. The quantity on order is the
sum of the purchase order, requisition (internal and supplier), and in-transit quantities owned
by the organization.
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Reorder-Point Planning Steps
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Entering Item Planning Attributes
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Entering General Planning Attributes for Reorder-point Planning
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Organization Items: General Planning Tabbed Region

Navigation Path
Inventory Responsibility
(N) Items > Organization Items > (T) General Planning
Carrying Cost Percent
Oracle Inventory uses the carrying cost percent information to calculate the EOQ for the item.
The annual carrying cost represents your internal cost to stock one of that item per year.
Carrying cost = (carrying cost percent) (standard unit cost)
Order Cost
Oracle Inventory uses the order cost to calculate the EOQ for the item. The order cost
represents the fixed cost of placing an order for any quantity of the item.
Fixed-lot Size Multiplier
Oracle Inventory orders a quantity that is a multiple of the fixed-lot size multiplier.
Minimum-Order Quantity
Oracle Inventory orders a quantity that is at least as large as the minimum-order quantity.
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Maximum-Order Quantity
Oracle Inventory orders a quantity that is less than or equal to the maximum-order quantity.
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Entering Lead Times
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Organization Items: Lead Times Tabbed Region

Navigation Path
(N) Items > Organization Items > (T) Lead Times
Lead Times
You can specify the following lead times:
Preprocessing lead time: Represents the number of days required to place a purchase or
manufacturing order.
Processing lead time: Represents the number of days required to procure or manufacture
the item.
Postprocessing lead time: Represents the number of days required to deliver a purchased
item from the initial supplier receipt of the purchase order.
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Entering Safety Stocks
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Entering Safety Stock

You can enter a user-defined quantity as the safety stock or have the system calculate the
safety stock. To enter user-defined quantities, use the Enter Item Safety Stocks window.
If you want Oracle Inventory to calculate safety stock, using the Mean Absolute Deviation
method, you must submit a concurrent request through the Reload Safety Stock window.
Navigation Path for Enter Item Safety Stocks Window
(N) Planning > Safety Stocks
Navigation Path for Reload Safety Stock Window
(N) Planning > Safety Stock Update
Stock Calculation Methods
User-defined quantity method: You can enter safety stock quantities and the date for which
each quantity is effective. You can update safety stock quantities that you previously entered
or that Oracle Inventory calculated for you.
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User-defined percentage method: To use the user-defined percentage method, you must use the
Reload Safety Stock window and specify the following information for the item:
A forecast
A safety stock percent
- Oracle Inventory uses the following equation to calculate safety stock quantities:
Safety stock = (safety stock percent) (forecast demand).
Mean Absolute Deviation Method: To calculate safety stock using this method, you submit a
concurrent request using the Reload Safety Stock window. In this window, you must specify
the following information:
A forecast
A service level percent
- The service level percent represents the probability that you can fill an order from
available inventory. If you enter a high service level, then Oracle Inventory
calculates relatively larger safety stock quantities. Oracle Inventory calculates
safety stock quantity by using the following equation: safety stock = Z 1.25
(mean absolute deviation) where Z is the appropriate value from a table of standard
normal distribution corresponding to the service level. The mean absolute deviation
is a measure of how the forecast demand deviates form the actual demand.
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Performing Reorder-point Planning
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Providing a Forecast
The reorder-point planning program uses information from the forecast to calculate the
Economic Order Quantity (EOQ) and the reorder-point quantity. The following equations show
each of these calculations:
EOQ = SQRT {[2 (annual demand) (order cost)] / (annual carrying costs)}
Reorder point = safety stock + [(lead time) (average demand)]
Providing On-Order Quantity Information
Oracle uses on-order quantity information to determine when to reorder an item. You should
reorder when the following is true:
(quantity on hand + quantity on-order) < reorder point
Oracle uses the following sources to calculate on-order quantities:
Purchase orders
Requisitions (internal and supplier)
In-transit shipments owned by the organization
Oracle Inventory uses purchase orders, requisitions, and in-transit shipments that are scheduled
to be delivered before the supply cutoff date.
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Viewing Planning Information

You can view planning information before creating replenishment orders. If you want to create
replenishment orders automatically, then you must request requisitions.
Creating Requisitions
Oracle creates requisitions for all items that meet the following condition:
(quantity on hand + quantity on order) < reorder point
Oracle creates either purchase requisitions (if the source is a supplier) or internal requisitions
(if the source is an Inventory Organization). The reorder quantity is the EOQ constrained by
the following attributes:
Fixed-lot size multiplier
Reorder Submission
You can submit the planning process for all items under reorder-point planning or submit the
planning process for just those items that are below their reorder-point quantities.
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Guided Demonstration: Reorder Point Planning
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Guided Demonstration - Reorder Point Planning

1.
(N) Items > Organization Items.
2.
Find Item AS18947.
3.
(T) General Planning.
4.
Change the Inventory Planning Method to Reorder Point.
5.
Change the Minimum Order Quantity to 35.
6.
Change the Order Cost to 45.
7.
Change the Carrying Cost % to 12.
8.
(T) Lead Times.
9.
Change the Processing lead time to 5.
10. Save and Close Window.

11. (N) > Planning > Reorder Point Planning.
12. Select Items Under Reorder Point as the Item Selection.
13. Enter Demand and Supply cut off dates.
14. Select a Forecast from the list of values.
15. Submit your request.
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Agenda
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Uses of Min-max Planning
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Min-max Planning
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Min-Max Planning
Recall that Min-max planning is a method of determining when and how much to order based
on user-defined minimum and maximum inventory levels.
Note: To perform organization-level Min-max planning for an item, you must specify
organization-level minimum and maximum quantities.
Deciding When to Order with Min-max Planning
You should order when the following is true:
(on-hand quantity demand) + (quantity on order) < minimum quantity
Quantity on order is the sum of purchase order quantities, requisition quantities, and intransit
shipments. It also includes WIP jobs as supply at the organization level. Quantity on order
represents supplies that you have not yet received in your organization.
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Min-max Planning: When to Order?
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Min-max Planning: How Much to Order?
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Note:
You can constrain the order quantity by specifying the following order modifiers for an item:
Fixed-lot multiplier
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Min-max Planning Steps
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Item Planning Attributes
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Min-max Planning Setup Procedure
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Selecting a Planning Level
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Entering Planning Attributes
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Entering Item Planning Attributes

After you select a planning level, either Organization or Subinventory, you enter the
appropriate planning attributes.
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Submitting the Min-max Planning Requests
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Submitting the Min-max Planning Requests

In addition to setting up planning attributes, min-max planning involves submitting a
concurrent process that generates the Min-max planning report. You can also perform
exception reporting with the Min-max planning reporting feature. When you submit the Minmax planning request, you must specify a number of parameters including parameters that
address the following:
Nettable subinventories
Demand quantities
On-order quantity information
Requisitions and WIP unrealized jobs
Exception reporting
You can submit the planning process for all items under min-max planning. You can also
submit the planning process for just those items under their minimum quantities and submit the
planning process for just those items over the maximum quantities.
Using Nettable Subinventories
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Oracle Inventory enables you to use on-hand quantities that exist in either nettable or nonnettable subinventories, or both.
Displaying Demand Quantity
Oracle Inventory displays the sum of all unfulfilled demand created before the cutoff date. The
system calculates demand quantity by using information from the following sources:
Sales orders
Internal orders
You can include WIP job component requirements as a source of demand as well. You can net
unfulfilled demand against on-hand quantity and also include inventory reservations in netting
on-hand quantity against demand.
Viewing Planning Information
You can view planning information before creating replenishment orders. To automatically
create replenishment orders, you must request requisitions.
Creating Requisitions and WIP Unrealized Jobs
If you request a restock, Oracle Inventory creates requisitions and WIP unreleased jobs for all
items that meet the following condition:
(on-hand quantity) + (quantity on order) < minimum quantity
Oracle Inventory creates purchase requisitions (if the source is a supplier) and internal
requisitions (if the source is an Inventory Organization) for all Buy items, and WIP unreleased
jobs for all Make items. The order quantity is constrained by the following attributes:
Fixed-lot size multiplier
Navigation Path
Inventory Responsibility (N) Reports > Planning
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Guided Demonstration Overview: Min-max Planning
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Guided Demonstration - Min-max Planning

Setting Up Min-max Planning for an Item.
1.
(N) Items > Organization Items.
2.
Find Item AS54888
3.
(T) General Planning
4.
Change the Inventory Planning Method to Min-Max.
5.
(M) File > Save.
6.
(M) Tools > Item Subinventories.
7.
(M) File > New
8.
Enter FGI as the subinventory.
9.
Select the Min-Max Planning Check box.
10. Enter 300 as the Minimum Qty.

11. Enter 900 as the Maximum Qty.
Running the Min-max Planning Report.
14. (N) Planning > Min-Max Planning
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15. Enter the following planning information.

Planning Level:
Subinventory
Subinventory:
FGI
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16. Choose OK.
17. Choose Submit.
Viewing the Min-Max Planning Report

18. (N) Requests.
19. Find your request.


20. Choose View Output.

21. (M) File > Close.
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Practice Overview: Min-max Planning
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Practice - Performing Min-max Planning

Overview
In this lab you will perform min-max planning for an item.
Assumptions
You completed the define items lab.
Tasks
Enable Min-max Planning for Item
Enter Min-max planning for ##-Item03 and restrict to your ##FGI subinventory.
Use the following minimum and maximum quantities:
Minimum quantity:
300
Maximum quantity:
900
Request a Min-max Planning Report
Request a min-max planning report for your item and subinventory using the following
information:
Planning level:
Subinventory
Subinventory:
##FGI
View Min-max Planning Report
View your min-max planning report.
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Solution Performing Min-max Planning

Enable Min-max Planning for Item
1.
Navigate to the Organization Items window and find your ##-Item03 item.
(N) Items > Organization Items
2.
Find your ##-Item03 item.
3.
(T) General Planning

Inventory planning Method:
Min-Max
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(M) File > Save
5.
(M) Tools > Item Subinventories
6.
Enter the minimum and maximum quantities for the item/subinventory combination as
follows:
Name:
##FGI
Minimum Quantity:
300
Maximum Quantity:
900

7.
(M) File > Save
Request a Min-max Planning Report

8.
Navigate to the Min-Max Planning window.
9.
(N) Planning > Min-Max Planning
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Enter the following information in the Parameters window:

Planning Level:
Subinventory
Subinventory:
##-FGI

10. Choose OK.

11. Choose Submit.
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View Min-max Planning Report

12. (N) Requests
13. Select My Completed Requests
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14. Select Find.

15. Select your request.
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16. Select View Output.

17. (M) File > Close.
18. (M) File >Close Form.
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Agenda
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Uses of Replenishment Counting
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Uses of Replenishment Counting

Recall that replenishment counting is a method of ordering items for subinventories. You can
perform counts for the non-tracked subinventories and then have Oracle Inventory check these
counts against the minimum quantities that you have specified. Oracle Inventory creates
requisitions that are based on the sourcing options that you specify for each item.
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Replenishment Planning Steps
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The following are the steps involved in performing a replenishment count:

1. Specify the requisition approval status using the profile options.
2. Use the Subinventories window to create the subinventories for which you want to
perform replenishment counts.
3. Assign items to the subinventories using the Item Subinventories window.
4. Define sourcing information for the subinventories. You can define sourcing information
at various levels, for example you can define sourcing information at the itemsubinventory level or at the subinventory level.
5. Enter the replenishment count header information using the Replenishment Count
Headers window.
6. Enter the replenishment counts using the Replenishment Count Lines window.
7. Process and report the count information for the system to generate requisitions based on
the sourcing information. For example, if sourcing is from another subinventory then the
system automatically generates a move order.
Note
Use the INV: Replenishment Count Requisition Approval profile option to specify the
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requisition approval status.

Use the INV: Replenishment Count Line Failure profile option to specify whether the
system should stop or continue processing in case a replenishment count fails.
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Subinventories Window
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Subinventories Window
Inventory Responsibility (N) Setup > Organizations > Subinventories (B) New.
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Item Subinventories Window
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Specifying Min-max Planning

To enter replenishment counts for an item, you must specify subinventory-level min-max
planning for the item.
Entering Subinventory-Level Min-Max Minimum and Maximum Quantities
You can use the Min-max method to replenish subinventories. In one replenishment count
entry method, you can order the min-max maximum quantity.
In another replenishment count entry method designed only for non-tracked subinventories,
you can enter an on-hand quantity, after which Oracle Inventory performs min-max
calculations.
Navigation Path
Inventory Responsibility (N) Setup > Organizations > Subinventories (B) Item/Subinventory.
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Item Subinventories: Order Modifier Tab
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Entering Order Modifiers

Fixed-Lot-Size Multiplier
When you perform replenishment counting, Oracle Inventory calculates order quantities that
are multiples of the fixed-lot-size multiplier.
Minimum Order Quantity
When you perform replenishment counting, Oracle Inventory calculates order quantities that
are greater than the minimum order quantity.
Maximum Order Quantity
When you perform subinventory replenishment, Oracle Inventory calculates order quantities
that are less than the maximum order quantity.
Navigation Path
Inventory Responsibility (N) Setup > Organizations > Subinventories > (T) Order Modifiers.
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Replenishment Count Headers
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Entering Replenishment Count Header Information

In the Replenishment Count Headers window, you enter a name and subinventory for which
you want to perform replenishment counting.
Navigation Path
Use the following navigation path to access the Replenishment Count Headers window:
Inventory Responsibility (N) Counting > Replenishments Counts > Counts (B) New.
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Replenishment Count Lines
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Entering Replenishment Count Lines

You must enter replenishment count header information to enter replenishment count lines for
items that are associated with the subinventory that you specify.
For any count type, the reorder quantities are constrained by fixed-lot-size multiple quantities,
maximum order quantities, and minimum order quantities. Oracle Inventory uses the sourcing
options defined for that item and subinventory combination.
On-Hand Quantity
This method is only for non-tracked subinventories. The item for which you select this method
must be a min-max planned item. You can count the contents of the subinventory and then
enter the on-hand quantity. Oracle Inventory uses the quantity that you enter to perform minmax comparisons and to generate requisitions.
Order Maximum
The item for which you select this method must be a min-max planned item. Oracle Inventory
generates a requisition for the min-max maximum quantity specific to that item and
subinventory combination. You cannot enter a quantity if you select this option.
Order Quantity
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The item for which you select this method can be planned using any replenishment planning
method. With the Order Quantity count type, Oracle Inventory generates a requisition for the
quantity that you enter.
Navigation Path
Use the following navigation path to access the Replenishment Count Lines window:
Inventory Responsibility(N) Counting > Replenishment Counts > Counts (B) Lines.
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Processing Replenishment Counts
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Entering Counts Using External Devices

You can use external data collection devices, such as bar code readers to enter replenishment
counts. You can run the replenishment validator and processor after entering counts directly
into the replenishment open interface.
Replenishment Validator and Processor
The replenishment validator reads the count records that exist in the interface table. The
interface table stores the counts that you enter with an external device. Oracle Inventory
validates the items, subinventories, and counts, and then writes the records to the count tables.
The replenishment count processor performs the calculations that are necessary to determine
whether Oracle Inventory should create requisitions. Oracle Inventory creates internal or
purchase requisitions according to each items default sourcing options. Run the replenishment
validator program before submitting the replenishment processor.
Purging Replenishment Counts
If you want to purge replenishment counts, use the Purge Replenishment Counts window.
Navigation Paths
Inventory Responsibility(N) Counting > Replenishment Counts > Process Interface.
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Inventory Responsibility (N) Counting > Replenishment Counts > Purge.
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Practice Overview: Performing a Replenishment Count Using

Forms
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Practice - Performing a Replenishment Count Using Forms

Overview
In this practice you will perform a replenishment count using forms. The following are the steps
in this practice:
Defining item-subinventory relationship and sourcing information
Entering the replenishment count header information
Entering the replenishment count using forms
Processing the count information using forms
Assumptions
You are skilled in Oracle Navigation.
You completed the practice on creating subinventories.
You completed the practice on defining items.
The quantity of ##-Item02 in your ##RM subinventory is at least 100.
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Tasks
Define Item-Subinventory Relationship and Sourcing Information
Define item-subinventory relationship and sourcing information for the following:

Subinventory:
##LV
Item:
##-Item02
Min-Max Planning:
Yes
Minimum Quantity:
10
Maximum Quantity:
50
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Also define sourcing information in such a way that ##-Item02 for ##LV is replenished from the
subinventory ##RM.
Enter Replenishment Count Header Information
Create a replenishment count header for forms using the following information:

Name:
Subinventory:
##RC1
##LV
Enter Replenishment Count Using Forms

Enter the replenishment count for ##RC1 using the following information:
Item:
##-Item02
Count Type:
Onhand Quantity
Count:
5
Process the Count Information Using Forms
Process the count entered for ##RC1 using the forms.
Answer the following question after you complete the lab.
What is the reorder quantity for ##RC1?
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Solution - Performing a Replenishment Count Using Forms

Define Item-Subinventory Relationship and Sourcing Information
1.
2.
Change Organization to M1 Seattle.
(N) Change Organization
Choose Seattle Manufacturing
Select OK
Verify the on-hand quantity of ##-Item02 in ##RM Subinventory.
3.
(N) On-hand, Availability > On-hand Quantity

Subinventory:
##RM
Item / Revision:
##-Item02
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(B) Find.

4.
Navigate to the Subinventories window
(N) Setup > Organizations > Subinventories
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5.
Select the ##LV subinventory from the list.
6.
Select Item/Subinventory
7.
Define the item-subinventory relationship using the following information:
(T) Planning
Item:
##-Item02
Min-Max Planning: Yes
Min Qty:
10
Max Qty:
50
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(T) Sourcing
Type:
Subinventory:
Subinventory
##RM

8.
(M) File > Save.

9.
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Navigate to the Replenishment Count Headers window.
(N) Counting > Replenishment Counts > Counts
10. Select New.
11. Create a new replenishment count header using the following information:
Name:
##RC1
Subinventory:
##LV
Count Using Mobile: No
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12.
Enter Replenishment Count Using Forms

13. Select Default Items.
14. Enter the following information:
Count Type:
Onhand Quantity
Quantity:
5
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15.
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Process the Count Information Using Forms
17. Return to the Replenishment Count Headers window.
18. Select Process and Report. The replenishment request number is displayed.
19. View the details of the Replenishment Count Report by querying for the request number in
the Requests window.
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Note: As the item ##-Item02 for the subinventory ##LV is sourced from another
subinventory ##RM, the application automatically creates a move order after you process
the count. However, to complete this transaction you must transact this move order using the
Transact Move Orders window.
20. What is the reorder quantity for ##RC1? The reorder quantity is 45 (maximum quantity
onhand quantity).

Practice Overview: Performing a Replenishment Count Using the

Mobile Application
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Practice - Performing a Replenishment Count Using the Mobile

Application
Overview
In this practice you will perform a replenishment count using the mobile application. The
following are the steps in this practice:
Entering the replenishment count header information using forms
Entering the replenishment count using the mobile application
Processing the count information using the mobile application
Assumptions
You completed the practice on performing a replenishment count using forms.
Tasks
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Create a replenishment count header using the following information:

Name:
##RC2
Subinventory:
##-LV
Count Using Mobile:
Yes
Enter Replenishment Count Lines
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Enter the replenishment count line information for ##RC2 using the forms:
Item:
##-Item02
Count Type:
Order Quantity
Enter Replenishment Count Using the Mobile Application
Enter the replenishment count for ##RC2 in the mobile application using the following
information:
Organization:
M1
Subinventory:
##-LV

Replenishment Count:
Item:
Order Quantity:
##RC2
##-Item02
30
Process the Count Information Using the Mobile Application

Process the count entered for ##RC2 using the mobile application.
Answer the following question after you complete the lab.
Can you enter the count in the Replenishment Count Lines window for ##RC2? Why?
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Solution - Performing a Replenishment Count Using the Mobile

Application
1.
Navigate to the Replenishment Count Headers window.
(N) Counting > Replenishment Counts > Counts
2.
Select New.
3.
Create a new replenishment count header using the following information:

Name:
##RC2
Subinventory:
##-LV
Count Using Mobile: Yes
Enter Replenishment Count Lines
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4.
Select Default Items.
5.
Enter the following information:

Count Type:
Order Quantity
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6.
(M) File > Save.
Enter Replenishment Count Using the Mobile Application

7.
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instance number.
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10. If more than one responsibility had been assigned to your user name, select Materials & Mfg
from the list.

11. Select Inventory from the Materials & Mfg Menu.
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12. Select Counting from the Inventory menu.

13. Select Repl Count from the Counting menu.
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14. Enter the following information when prompted.

Note: The mobile application screen is case sensitive.
Organization Code:
M1
Subinventory:
##-LV
Replenishment Count Name: ##RC2
15. Select Count to enter the order quantity.

16. Enter 30 as the order quantity and select Save/Next.

Note: As ##-Item02 is the only item associated with 00-LV subinventory, the item name is
automatically displayed and you are prompted to enter just the count quantity. If there are
more than one item associated with the subinventory, then you also need to enter the item.
You can enter the count quantity for all items that have been associated with the
subinventory. You can enter the count quantity for these items even if you have not included
them in the Replenishment Count Header.
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17. Press Ctrl+B to view the Message Page.


Process the Count Information Using the Mobile Application

18. Select Process and Report to process the count information that you entered.
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19. Press Ctrl+B to view the Message Page. The request number is displayed. You can view the
details of the Replenishment Count Report by querying for the request number in the
Requests window.

20. Select Logout to exit the mobile application.

21. Can you enter the count in the Replenishment Count Lines window for ##RC2? Why? No,
you cannot enter the count in the Replenishment Count Lines for ##RC2. This is because
you would have selected the Count Using Mobile check box in the Replenishment Count
Headers window, you can enter the count only using the mobile application.
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Processing PAR Counts
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PAR Counts
Periodic Automated Replenishment (PAR) counting is a replenishment method that enables
you to perform replenishment count at a locator level. For example, in Oracle Inventory you
can model a hospital storeroom as a subinventory and the shelves and trolleys in the storeroom
as locators. You can define PAR levels for each item stored in these locators. You can
replenish these items every time they go below the PAR level.
In general, the steps for PAR are the same as that of replenishment counting. For a list of these
steps, see Replenishment Planning Steps earlier in this lesson. The following steps are specific
to PAR:
Enable PAR level planning for the subinventories.
Define locators for the subinventories.
Enter the PAR level when you define the item subinventory relationship.
Note:
If you have enabled PAR level planning for a subinventory, you cannot perform min-max
planning for that subinventory. The PAR level acts as both the minimum and maximum
quantity levels for subinventories that have PAR level planning enabled.
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Reorder Quantity For PAR Count
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PAR Count Reorder Quantity

The reorder quantity when you process a PAR count depends on the following factors:
PAR Level
Quantity
Count Type
The table in the slide explains how the reorder quantity differs based on these factors. The
system generates the appropriate replenishment document based on the item sourcing for the
subinventory. For example, if sourcing is from another organization, the system automatically
generates an internal order.
If you choose on-hand quantity as the count type, then the quantity denotes the on-hand
quantity available in the locator. The system compares this quantity that you enter with the
PAR level to calculate the reorder quantity. This option is only for non-tracked subinventories.
If you choose order PAR then the reorder quantity is same as the PAR level. This is similar to
the order maximum option available when you perform a replenishment count. You cannot
enter the quantity if you choose order par.
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Choose order quantity to generate a replenishment requisition for the quantity that you want to
order. In this case, the quantity denotes the order quantity.
Note:
If you have not specified the PAR level, then you can only choose order quantity as the count
type.
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Agenda
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Kanban Cards
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Kanban Replenishment
Recall that 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 with relatively constant
demand and medium-to-high production volume.
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Kanban Planned Items
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Kanban Planned Items

To define a kanban planned item, you must set the Release Time Fence attribute in the
MPS/MRP Planning attribute group to the Kanban Item (Do Not Release) option in the Master
Items window. Use the following navigation path to access the MPS/MRP Planning attribute.
You can define pull sequences only for kanban planned items.
Navigation Path
Inventory Responsibility (N) Items > Master Items > (T) MPS/MRP Planning.
Defining Pull Sequence Sources
For every kanban planned item, you must define a pull sequence, which is a series of kanban
locations that model the replenishment network on the shop floor. For example, a kanban
location can be a subinventory locator. The replenishment source for a kanban location can be
another kanban location, a production line, or an external source. You can use locators even if
locator control is turned off at the organization and item levels.
Kanbans can be sourced from an external supplier or an internal organization. A suppliersource-type kanban triggers a purchase request to the supplier, while an inter-org- source-type
kanban results in an inter-organization transfer.
Navigation Path
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Inventory Responsibility(N) Kanban > Pull Sequences > (T) Source.
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Kanban Cards
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Kanban Cards
Kanban cards are created for an item, subinventory, and locator (optional). They are uniquely
identified by a kanban number. For cards generated from a kanban pull sequence, the number
is automatically generated. For manually defined cards, both replenishable and
nonreplenishable, you can enter an unused kanban number or let the system create the number.
You cannot override the quantity for generated cards, but you can add additional cards or
delete existing cards from the pull sequence to control the inventory in the replenishment
chain.
A supply source defaults from the sourcing rules if a sourcing rule is available for the item and
kanban location. Only the primary supplier, based on the split percentage and ranking, is used.
You can manually override the quantity and supply source on a pull sequence only before the
cards are printed. Changes to the pull sequence are not reflected until the old cards are deleted
and new ones are created. Updates to the sourcing rules apply only to cards created after the
update.
Kanban Card Status
Kanban cards are generated with a default card status of Active. When you define a card
manually,you can initially give it either Active or Hold status.You can terminate use of a card
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by changing the card status to Canceled, but you cannot reverse this change. Only canceled
cards can be deleted.
Navigation Path
Inventory Responsibility(N) Kanban > Pull Sequences (T) Kanban.
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Kanban Supply Status
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Kanban Supply Status

You can set all of the supply status codes manually. You can also set all of the supply statuses
automatically except for In-Transit. All cards are generated with a status of New. You can
switch this status to Empty to trigger a kanban replenishment signal. During initial setup, you
can switch the status to Full if you are starting out with a full bin. When you are defining a card
manually, you create a card with at status of Empty, Full or New.
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Kanban Replenishment Sources
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Kanban Sources of Replenishment

You can create kanban cards with the following source types:
Inter-Org- Replenished by another organization.
Intra-Org- Replenished from another subinventory in the same organization.
Production- Replenished by a production line.
Supplier- Replenished by an external supplier.
Flow Schedules- Replenished by flow.
User Defined- You can define a replenishment source.
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Kanban Card Printing
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Kanban Card Printing

You can print kanban cards for a replenishment plan or a replenishment chain when you
generate the cards. You can also print cards individually if the card information is complete.
You can print duplicate cards only if the original is lost or voided. You are given a warning
message when you print duplicate cards.
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Guided Demonstration Overview: Generating Kanban Cards
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Guided Demonstration - Kanban

Create Kanban Pull Sequence
1.
(N) Kanban > Pull Sequences.
2.
Choose New.
3.
Enter the following information to create the pull sequence.

Item:
AS18947
Subinventory: FGI
Source Type:
Supplier
Supplier:
Advanced Network Devices
Supplier Site: Santa Clara
4.
(T) Kanban
Calculate:
Size:
Number of Cards:
Minimum Order Qty:
5.
(M) File > Save
6.
Choose Generate Cards
7.
Choose Cards
8.
Select the first card.
9.
Choose Replenish
Number of Cards
10
10
20
10. Select the second card.
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11. Choose Replenish
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12. (N) File > Save
13. (N) File > Close Form.

Practice Overview: Generating Kanban Cards
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Practice - Generating Kanban Cards

Overview
In this lab you will learn how to generate Kanban Cards.
Assumptions
You have completed the defining Subinventories Lab
You have completed the Defining Items Lab.
You are skilled in Oracle navigation.
Tasks
Setting up a Kanban Pull Sequence
Set up a Kanban pull sequence using the following information:
Item
##-Item03
Subinventory:
##FGI
Locator:
Source Type:
Supplier
Supplier:
Supplier Site:
Santa Clara
Calculate:
Number of Cards
Size:
10
Cards:
10
Minimum Order Quantity:
20
Generate Kanban Cards
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Generate Kanban cards for the pull sequence you created.

Replenish Kanban Cards
Replenish your Kanban cards.

Solution Generating Kanban Cards

Setting up a Kanban Pull Sequence
1.
Navigate to the Pull Sequences window.
2.
(N) Kanban > Pull Sequences > (B) New.
Use the following information to define a new pull sequence:

Item:
##-Item03
Subinventory:
##FGI
Locator:
Row ##, Rack 1, Bin 1
Source Type:
Supplier
Supplier:
Supplier Site:
Santa Clara
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(T) Kanban
Calculate:
Size:
Number of Cards:
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Number of Cards
10
10

Minimum Order Quantity:
3.
20
(M) File > Save
Generate Kanban Cards

4.
Choose Generate Cards
5.
Choose Yes to print Kanban cards.
6.
Verify your Kanban cards printed.
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(M) View > Requests
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Select All My Requests

Choose Find

Replenish Kanban Cards

7.
Navigate to the Kanban Cards Summary window.
8.
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Choose Cards or (N) Kanban > Kanban Cards.
Replenish Kanban cards.
Select the first Kanban card in the list, and choose Replenish.
Verify the supply status changed to Wait.
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Select the second Kanban card in the list and choose replenish.
Verify the supply status is Empty.

9.
(N) File > Save.
10. (N) File > Close Form.
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Agenda
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Available to Promise
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Available to Promise
Available to Promise (ATP) represents the quantity available for sale at any given period. The
basic formula for ATP is ATP quantity = on-hand quantity + supply - demand shortage.
Oracle Inventory enables you to define different rules that govern what is considered supply
and demand.
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ATP Rules and ATP Checks
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Uses of ATP in Oracle Inventory
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Uses of ATP in Inventory

You can view the earliest available data for a specific quantity of an item or a group of
items and the available quantity of an item for a specific date.
You can view the supply, demand, and ATP item quantities for the periods that fall
between the current date and the end of the ATP horizon.
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Steps for Checking ATP
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Checking ATP
Note: Oracle Inventory displays the organization-level default ATP rule whenever you perform
ATP queries in your organization.
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ATP Rules Setup Steps
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Defining an ATP Rule

Navigation Path
Inventory Responsibility (N) Setup > Rules > Available to Promise
You can use the following equation to calculate the ATP quantity for each supply period.
Period ATP = (period supply) (period demand)
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Defining Computation Options
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ATP Computation Options

When you define ATP rules, you must specify computation options. Computation options
govern how to calculate the ATP quantity in each period. You can use computation options
individually or in combination.
Backward Consumption of Shortage
You can calculate ATP information by using the surplus quantity of an item from prior ATP
periods to cover a period shortage. If the period ATP is negative, you can go backward through
the supply periods, one at a time, and subtract the shortage from the available quantity. You
can keep going backward until the shortage disappears or you run out of periods.
Forward Consumption of Shortage
You can calculate ATP information by using a surplus quantity of an item from future ATP
periods to cover an earlier period shortage. If the period ATP is negative, then you can go
forward through the supply periods, one at a time, and subtract the shortage from the available
quantity. You can keep going forward until the shortage disappears or you run out of periods.
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Defining Computation Options
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Determining ATP using Accumulation Options

You can use the Accumulate Available option to calculate ATP by carrying over the available
quantity of an item from one ATP period to the next.
Note: This option assumes backward consumption of shortage.
Entering an Accumulation Window
Accumulation window is the number of days by which to limit the accumulation of available
supply. The accumulation window is measured in workdays based on the organization calendar
and exception set.
The accumulation window option prevents the commitment of near-term supply to orders that
have requirement dates far into the future. The accumulation window applies to only the
following two computation options:
Accumulate Available
Backward Consumption
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Specifying Supply and Demand Time Fences
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A time fence is the total lead time required to purchase or manufacture an item. You can
define item time fence options to provide timing information for the ATP calculation.
The ATP calculation algorithm uses the following time fences:
Past-due-supply time fence
Past-due-demand time fence
Infinite-supply time fence
Entering Past Due Supply and Demand Days
Past-Due-Supply Days
The ATP process does not consider any supply scheduled before the past-due-supply time
fence date. The ATP process considers all supply from the beginning of the past-due-supply
time fence date to the current date as supply for the current date.
Past-due-supply time fence date = (current date) (past-due-supply days)
Past-Due-Demand Days
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The ATP process does not consider any demand scheduled before the past-due-demand time
fence date. The ATP process considers all demand from the beginning of the past-due-demand
time fence date to the current date as demand for the current date.
Past-due-demand time fence = (current date) (past-due-demand days)
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Selecting an Infinite-Supply Option

The infinite-supply time fence date is the end of the ATP horizon. Oracle Inventory does not
consider supply sources scheduled on or after this date in ATP calculations. The infinitesupply option represents the total time beyond which the ATP process assumes that infinite
supply is available to cover any scheduled demand.
You can select one of the following infinite-supply options:
Cumulative manufacturing lead time: The manufacturing lead time of an assembly plus
the largest adjusted cumulative manufacturing lead time of its components.
Cumulative total lead time: The total lead time of an assembly plus the largest adjusted
cumulative total lead time of its components.
Total lead time: The sum of the preprocessing, processing, and postprocessing lead times
of an item.
User-defined time fence: A lead time that you specify for the item.
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Specifying a Supply Period

Oracle Inventory designates a period as beginning on a scheduled supply date and ending on
the day before the next scheduled supply date. A supply period can cover several days or be a
minimum of one day.
If supply occurs on a nonworkday, the ATP calculation considers that supply as belonging to
the next workday. If multiple supply events occur on the same day, the ATP process considers
the total supply.
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Specifying Demand Sources
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ATP Demand
ATP demand is the sum of all demand quantities in the supply period. If demand occurs on a
nonworkday, the ATP calculation considers that demand as belonging to the previous workday.
ATP by Demand Class Check Box
If you select the ATP by Demand Class check box, the ATP calculation considers only supply
and demand for a particular demand class. The demand class feature enables you to forecast,
plan, and promise based on subdivisions of your demand. For example, a demand class might
represent a large customer or a group of related customers.
If you select ATP by Demand Class, Oracle Inventory considers only the following sources of
supply:
Discrete MPS
Repetitive MPS
Discrete WIP
Repetitive WIP
Nonstandard WIP
Including User-defined Demand Sources
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In addition to Oracles predefined sources, you can use your own demand sources. To use your
own demand sources, you must populate the user-defined demand interface table with your
external demand information.
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Specifying Supply Sources
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Using the Available On-Hand Quantity as the Supply Source

You can choose to include available on-hand quantity as a source of supply. However, you
should not typically use available on-hand quantity as supply in make-to-order and assembleto-order environments.
Including User-Defined Supply as a Supply Source
In addition to Oracles predefined supply sources, you can use your own supply source.
However, you must populate the user-defined supply interface table with your external supply
information.
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Setting Up Item and Bills for ATP Checking
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ATP Checking
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Enabling ATP Checking When Placing a Demand

If you enable the Check ATP attribute, the item must pass an ATP test before you can place a
demand for it in Oracle Order Management. When you place a demand for the item in Oracle
Order Management, the ATP process checks to see if there is sufficient quantity.
If you decide not to enable the Check ATP attribute, then you can place a demand for the item
even if there is not sufficient stock to satisfy the demand. You should not enable the Check
ATP attribute for items that are noncritical, rarely out of stock, on a short manufacturing cycle,
or replenishable on short notice.
Specifying an Item ATP Rule
Oracle Inventory uses the ATP rule that you assigned to check ATP when you place a demand
for the item in Oracle Order Management. If you do not specify an ATP rule for the item, the
ATP process uses the organization-level default ATP rule that you enter in the Organization
Parameters window.
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ATP Checking
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Selecting the ATP Components Attribute

If you enable the ATP Components attribute for an assembly, you can place a demand for the
assembly only if all of the components with the enabled Check ATP attribute at the billcomponent level pass the ATP check. If you enable the Check ATP attribute for the assembly,
then the assembly must also pass the ATP check before you can place a demand for it.
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ATP Checking
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Setting the Check ATP attribute at the Bill Level

Use the following navigation path to access the Bills of Material window:
Navigate to the Oracle Bills of Material application, (N) Bills > Bills.
If an item is a component in a bill of material, you can change the value of the Check ATP
attribute, at the bill-component level, to something other than what you set at the master-item
level.
If you had enabled the Check ATP attribute when you defined the item, you can decide
whether to enable or disable the component Check ATP attribute.
If you had not enabled the Check ATP attribute when you defined the item, Oracle Inventory
does not enable the bill component Check ATP attribute.
This enables you to set up items that require passing ATP checks when ordered directly, but
that do not require passing ATP checks when they are components of an assembly.
Use the following navigation path to access the Check ATP attribute in Oracle Inventory:
(N) Items > Organization Items > (T) Order Management.
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Viewing ATP Criteria
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Viewing ATP Information for Individual Items

When you set up ATP criteria, you must specify the following information:
Required quantity
Required date
Oracle Inventory then displays the following ATP results:
Earliest date on which the required quantity will be available
ATP quantity for the required date
Viewing ATP Information for a Group of Items
Oracle Inventory returns the date when all of the items in the group will be available. You can
view the ATP result and supply and demand detail for each item by navigating to the ATP by
Period and Supply/Demand Detail windows respectively.
Viewing ATP Information for a Demand Class
You can view ATP information for individual items and groups of items that belong to a
particular demand class.
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Agenda
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Planning and Forecasting Profile Options
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Planning and Forecasting Profile Options

Minmax Reorder Approval
Indicates the status of requisitions created by the Minmax Planning Report. Inventory
predefines a value of Pre-approved for this profile for all levels upon installation. If you choose
Incomplete, you can optionally load requisitions as unapproved and use the document approval
functionality in Oracle Purchasing.
Enter Replenishment Count Form
Indicates processing control in the Enter Replenishment count window. The available values
are as follows:
Background processing: Upon commit, control returns immediately to you, allowing you
to continue working. The replenishment count transactions are executed on a periodic
basis.
Concurrent processing: Upon commit, Oracle Inventory spawns the concurrent process
and returns control immediately to you, allowing you continue working. Displays the
concurrent request number representing the concurrent process executing the
replenishment.
Replenishment Count Line Failure
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Indicates the action taken when a failure is detected while processing a replenishment count
line. Inventory predefines a value of Continue processing for this profile for all levels upon
installation.
Continue processing- Other (successful) lines for the replenishment header are processed
to requisition lines.
Halt processing- Do not process other (successful) lines for the replenishment header.
Replenishment Count Requisition Approval
Indicates the status of subinventory replenishment requisitions created by the replenishment
processor. Available values are:
Pre-approved- Requisitions created by the replenishment processor are approved.
Incomplete Requisitions created by the replenishment processor have not been
submitted for approval.
Approval Required- Requisitions created by the replenishment processor are currently not
approved.
Inventory predefines a value of Incomplete for this profile. If you choose Approval Required,
you can optionally load subinventory replenishment requisitions as unapproved and use the
document approval functionality in Purchasing.
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Setting Up the Min-Max System Profile Value
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Entering Min-Max Approval Status

When you run the Min-max report, the INV: Minmax Reorder Approval profile option enables
you to create requisitions as either approved or unapproved.
How to Enter a Min-Max Approval Status
To enter a min-max requisition approval status, navigate to the System Profiles window to
enter a personal or system profile value to specify a min-max reorder approval status.
Navigation Path
Inventory Responsibility (N) Setup > Profiles > Personal.
The Personal Profile Values window appears.
(M) View > Find.
A Find window appears. Enter %Minmax% in the find window to locate the Minmax
Reorder Approval profile option.
Note: If you do not have access to system-level profile values, ask your system administrator
for assistance in setting up the system-level Minmax Reorder Approval profile option.
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Subinventory Setup Windows
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Agenda
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Min-Max Order Type and Order Source
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Min-Max Order Type and Order Source

An item can be a make item or a buy item. This characteristic of an item and the source
type that you specify for the item determine the type of replenishment order created for that
item. For organization level min-max planning, you can specify the source type in the General
Planning tab of the Organization Item window.
For subinventory level min-max planning, you can specify the source type in the Sourcing tab
of the Item Subinventories window. If this is left blank, the report checks to see if a source
type is specified either at the Subinventory level, the Organization Item level, or in the
Organization Parameters window.
If the item is a Buy item and the source type is set to Inventory, min-max creates
requisitions. If the source type is Supplier, it creates purchase orders, and if the source type is
Subinventory, it creates move orders. Note that source type Subinventory is not valid for
organization level planning (it is not a valid option on the Organization Parameters window; if
used on the Organization Item window for an item that is planned at the organization level, it
will not restock the item). Items must also be transactable in order for min-max to create
purchase orders, requisitions or move orders (Transactable check box on Inventory tab of
Organization Item window checked).
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Purchasable Item Considerations

The following conditions must be satisfied before min-max can insert records into the PO
interface table:
For requisitions (source type Inventory), internal orders must be enabled for the item.
That is, the Internal Orders Enabled check box in the Order Management tab of the
Organization Item window must be selected.
For purchase orders (source type Supplier), the item is purchasable. That is, the
Purchasable check box in Purchasing tab must be selected.
An Inventory AP Accrual account is defined for the organization.
An Invoice Price Variance account is defined for the organization.
For Min-Max Report to create Purchase / Internal requisitions successfully, Encumbrance
Account SHOULD BE specified at Item or Org level, if the 'Use Requisition
Encumbrance' check box is selected in the Financial Options window under
Encumbrance tab. For subinventory level planning, Encumbrance Account SHOULD BE
specified at the item-subinventory, subinventory, organization-item or organization level.
For organization level planning, min-max will only look at the organization-item or
organization level to find the encumbrance account. If the 'Use Requisition Encumbrance'
check box is not selected, it is optional to specify Encumbrance Account in the
Organization Items window or Organization Parameters window.
A charge account is defined. If the Inventory Asset Value check box in the Costing tab of
Organization Item window is checked, then the material account is used. For organization
level planning, the material account is specified in the Valuation Accounts section of the
Costing Information tab of the Organization Parameters window. For subinventory level
planning, the material account is specified in the Subinventories window. If the
Inventory Asset Value check box is not selected, the expense account is used for
organization level planning. The expense account is defined on the Purchasing tab of the
Organization Item window, or in the Valuation Accounts section of the Costing
Information tab of the Organization Parameters window; for subinventory level planning,
Oracle Inventory checks the expense account defined at the subinventory level before
looking at the org-item or org level expense account.
Additional considerations for Creation of WIP Jobs
For make items, min-max inserts a record into the WIP interface table
wip_job_schedule_interface for creating a WIP Job or Schedule for manufacturing this item.
WIP work orders cannot be generated for subinventory level min-max planning if a Make
item is min-max planned at the subinventory level, the report flips the flag and treats it as a
Buy item instead. Also, the item must have the Build in WIP and Pick components enabled.
Make Item Considerations
The following considerations should be considered when using min-max on make type items.
Discrete MPS
Set the item type to Make.
Make certain that under the general planning tab the sourcing is set to null and cleared
out.
Make certain to run the min-max planning with restock = yes. Whether or not WIP
demand and supply are included in the calculations is specified in the report parameters.
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It is possible to verify that an entry has been made into the table
WIP_JOB_SCHEDULES_INTERFACE.
Run the associated Mass load Concurrent Program (WIP > Discrete > Import Jobs and
Schedules) to ensure that the WIP interface tables have been picked up and processed.
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Replenishment Method Selection
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Replenishment Method Selection

Consider the following information when determining the replenishment method to use:
Supply sources
Document created during replenishment
Demand Sources Although not listed in the table, demand sources might include the
following:
- Sales orders
- Forecasts
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Agenda
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Summary
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11i Inventory Accuracy

Concepts
Chapter 12
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11i Inventory Accuracy Concepts

Chapter 12 - Page 1
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Chapter 12 - Page 2
Objectives
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Chapter 12 - Page 3
Agenda
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Chapter 12 - Page 4
Overview of Inventory Accuracy
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Overview
Oracle Inventory has features that enable you to control and improve the accuracy of your
inventory records:
ABC Analysis
Cycle Counting
Physical Inventory
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Chapter 12 - Page 5
Agenda
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Chapter 12 - Page 6
ABC Analysis Overview
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ABC Analysis
ABC Analysis is the classification of a group of items in decreasing order of annual dollar
volume or other criteria. This array is then usually split into three classes A, B, and C.
A Group- The A group usually represents 10% to 20% by number of items and 50%-70%
by projected dollar volume.
B Group- The B group usually represents about 20% of the number of items and about 20%
of the dollar volume.
C Group- The C group contains 60%-70% of the number of items and represents about
10%-30% of the dollar volume.
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Chapter 12 - Page 7
Agenda
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Chapter 12 - Page 8
Cycle Counting Overview
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Cycle Counting
With cycle counting, inventory is counted on a cyclic schedule rather than once a year. A cycle
inventory count is usually taken on regular defined basis. Most effective cycle counting
systems require the counting of a certain number of items every workday with each item
counted at a prescribed frequency. You can use cycle counting along with ABC analysis to
count items of greater importance more frequently than those of less importance. Cycle
counting supports scheduled counting based on value or counting by location, and can be set
up at the organization level or the subinventory level.
Benefits of Cycle Counting
Cycle counting enables you to keep inventory records accurate by correcting errors between
the system on-hand (perpetual) and actual on-hand (physical) quantities. Cycle counting can
also be a valuable tool to help identify patterns in the errors found. Analysis of these patterns
can suggest and help to prioritize improvements in training, tools, and processes. Over a period
of time these improvements may increase the average level of inventory record accuracy.
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Chapter 12 - Page 9
Agenda
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Physical Inventory Overview
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Physical Inventory
A physical inventory is a periodic reconciliation of system on-hand balances with physical
counts in inventory. You can perform physical inventories whenever you choose to verify the
accuracy of your system on-hand quantities. You can perform a physical inventory for an entire
organization or for particular subinventories within an organization. Physical inventories are
usually performed once every six months or once a year depending on the organization
requirements.
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Why Perform Physical Inventories?
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Agenda
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Mobile Inventory Accuracy Overview
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Mobile Device Inventory Accuracy

Oracle Mobile Materials Management provides windows to perform cycle counting and
complete physical inventory functions.
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Agenda
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Summary
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11i Inventory Accuracy

Fundamentals
Chapter 13
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11i Inventory Accuracy Fundamentals

Chapter 13 - Page 1
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Chapter 13 - Page 2
Objectives
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Chapter 13 - Page 3
Agenda
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Chapter 13 - Page 4
Defining an ABC Analysis
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Chapter 13 - Page 5
Define and Run an ABC Compilation
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Explaining ABC Compilation

An ABC Compile is a ranking of your items based upon selected criteria. You can define and
compile an ABC analysis for your entire organization or for a specific subinventory within
your organization.
You choose the compilation criterion, the scope of your analysis, the cost type to use in
determining item values and any additional information that may be conditionally necessary
based on your compilation criterion.
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Chapter 13 - Page 6
ABC Compilation Criteria
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Explaining ABC Compilation Criteria

For each distinct compile, you can choose one criterion (such as current on-hand value or MRP
demand usage value) to value and rank each item included in the ABC compile. The criterion
that you choose defines what the rank of a particular item will be in the ABC Compile.
For example, if you use current on-hand quantity as your compile criterion, then item X with
an on-hand quantity of 10 units is of higher rank than item Y with a quantity of 5 units. If you
use current on-hand value as the criterion and if item X has a cost of $10 per unit and item Y
has a cost of $25 per unit, then item Y has a higher value than item X since Oracle Inventory
compares $100 ($10x10 units) to $125 ($25x5 units).
Explaining ABC Compilation Criteria Options
Current On-Hand Quantity
Use the current on-hand quantity of inventory. Assign the sequence number by descending
quantity.
Current-On-Hand Value
Use the current on-hand quantity of inventory multiplied by the cost for the cost type.
Assign the sequence number by descending value.
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Chapter 13 - Page 7
Historical Usage Value

Use the historical usage value (transaction history). This is the transaction quantities times
the unit cost of the transactions for the time period you specify. Assign the sequence
number by descending value.
Historical Usage Quantity
Use the historical usage quantity (transaction history) for the time period you specify.
Assign the sequence number by descending quantity.
Historical Number of Transactions
Use the historical number of transactions (transaction history) for the time period you
specify. Assign the sequence number by descending number of transactions.
Forecasted Usage Value
Use the forecasted usage value based on the forecast quantity calculated and the cost type
you specify. Assign the sequence number by descending value.
Forecasted Usage Quantity
Use the forecasted usage quantity. Assign the sequence number by descending quantity.
Previous Cycle Count Adjustment Quantity
Oracle Inventory sums the quantity of all cycle count adjustments that have occurred since
the last ABC compile date. Assign the sequence number by descending quantity.
Previous Cycle Count Adjustment Value
Oracle Inventory sums the value of all cycle count adjustments that have occurred since the
last ABC compile date. Assign the sequence number by descending value.
MRP Demand Usage Quantity
Oracle Inventory sums the MRP gross requirements for the MRP plan you specify. Assign
the sequence number by descending quantity.
MRP Demand Usage Value
Oracle Inventory sums the MRP gross requirements for the MRP plan you specify, then
multiplies each by the item cost type you choose in the ABC compile form. Assign the
sequence number by descending value.
MPS Demand Usage Quantity
Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify.
Assign the sequence number by descending quantity.
MPS Demand Usage Value
Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify, then
DRP Demand Usage Quantity
Oracle Inventory sums the DRP gross requirements for the DRP plan you specify. Assign
the sequence number by descending quantity.
DRP Demand Usage Value
Oracle Inventory sums the DRP gross requirements for the DRP plan you specify, then
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Chapter 13 - Page 8
Agenda
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Chapter 13 - Page 9
ABC Valuation Scope
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ABC Valuation Scope

You can select a valuation scope for determining the ranking of items. You can do an ABC
compile across individual subinventories or across an organization. If you choose to restrict
ABC compile to items within a particular subinventory, you have the option of valuing your
items across all subinventories in the organization or by the individual subinventory.
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Agenda
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Defining ABC Groups
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Defining ABC Groups

ABC assignment groups link a particular ABC compile with a valid set of ABC classes. This
allows you to selectively reduce or increase the number of ABC classes you want to use in
your item assignments for a particular ABC compile.
Oracle Inventory uses these groups when you automatically assign your items to ABC classes.
It ensures that you divide your items into the exact number of groupings you specified in the
ABC group.
You must also assign a sequence number to each class associated with the ABC group. The
class with the lowest sequence number is assumed to have the highest rank and will have
higher rank items assigned to that class than the next higher sequence number.
You may update an assignment group to add new classes, however you cannot delete a class. If
you need to delete a class, you must create a new assignment group with only the desired
classes.
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Defining ABC Classes
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Defining ABC Classes

You use ABC Classes to identify the value groupings to which your items belong. You can
define these classes using your own terminology. For example you might define classes High,
Medium, Low, and later assign your items of highest rank to high, those of lower rank to
Medium, and those of the lowest rank to low. You must assign an ABC class to at least one
ABC group.
You can use ABC classes to group items for a cycle count where you count A items more
frequently than B items. When you use ABC classes in this way, you perform an ABC
analysis and assign items to classes based on analysis results.
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ABC Item Assignments
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When you define ABC assignments you specify the cutoff point for each ABC class. Each
ABC class must have at least one item assigned to it and all items in the ABC compile must be
assigned to an ABC class. You can use any of the following fields to determine the cutoff
points:
Seq: You can enter the sequence number from the ABC Descending Value Report for the
last item to be included in each ABC class. Oracle Inventory automatically calculates this
value if you choose to assign classes by another method. Oracle Inventory displays the last
sequence number as the default of the last class.
Inventory Value: You can enter the cumulative value from the ABC Descending Value
Report for the last item to include in each ABC class. Oracle Inventory automatically
calculates the maximum value. This maximum value is restricted to the total inventory
value compiled and is displayed in the Total Compile Value field. Oracle Inventory
displays the total inventory value as the default for the last class.
ABC Item Assignments Note
% Items: You can enter the percent of number of items compiled from the ABC Descending
Value Report to include in each class. Oracle Inventory automatically calculates this value if
you choose to assign classes by another method.
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% Value: You can enter the percent of total compile value from the ABC Descending Value
Report to include in each class. Oracle Inventory automatically calculates this value if you
choose to assign classes by another method.
It is possible to have several items in the ABC compile with zero value. If any item with zero
value is in a class other than the last class, you may only assign items using the sequence
number or item percent.
For the Inventory Value, % Item, and % Value fields, if the value entered does not exactly
match any item, Oracle Inventory chooses the first item with a value greater than the value
entered. For example, if you choose 20% to be A items, inventory calculates which items
comprise 20% and will include the next item if a partial is in the calculation. If 20% = the first
10 items in your compile, plus part of the 11th item, then items 1-11 are A items.
If you are not satisfied with the class into which an item falls as a result of the automatic ABC
assignment process, you can change it. For example, you compile your ABC analysis based on
historical usage value. A new item in your inventory is ranked low because it has little
transaction history. However, you know that for the future this item should really be ranked
higher. Use the Update ABC Assignments form to reclassify this item.
Whenever you recompile an ABC analysis or change the method by which you assign your
ABC classifications, you lose any changes you might have made to your item assignments. All
items are reclassified based on their new ranks in the ABC Descending Value Report and the
method you choose to determine cutoff points.
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Guided Demonstration Overview: Compiling an ABC Analysis
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Guided Demonstration - ABC Analysis

Creating an ABC Compile
1.
(N) ABC Codes > ABC Compiles.
2.
Choose New.
3.
Enter Finished Goods as the compile name.
4.
Enter Finished Goods Analysis as the description.
5.
Choose subinventory as the content scope.
6.
Choose subinventory as the valuation scope.
7.
Select the FGI subinventory.
8.
Select Current on hand quantity as the compile criterion.
9.
Choose Compile.
Note: Note the concurrent request number.
10. Choose Yes to print the compile results.

Note: Note the concurrent request number.
11. Choose Close Form
Creating ABC Classes
12. (N) ABC Codes > ABC Classes.
13. (M) File > New.
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14. Create three ABC Classes using the following information.

Class Name:
Finished Goods A
Description:
Finished Goods Class A
Class Name:
Description:
Finished Goods B
Finished Goods Class B
Class Name:
Description:
Finished Goods C
Finished Goods Class C


ABC Assignment Groups
17. (N) ABC Codes > ABC Assignment Groups.
18. (M) File > New.
19. Enter Finished Goods ABC as the Group Name.
20. Enter Finished Goods as the compile name.
21. Choose Group Classes.
22. Choose the following ABC Classes.
Finished Goods A
Finished Goods B
Finished Goods C
24. Choose Assign Items.
25. Enter the following percentage values.
A items:
50%
B items
80%
C items
populates automatically
26. (M) File > Save and Proceed.
Note: Note the Concurrent request number.
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Practice Overview: Compiling an ABC Analysis
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Practice - Compiling an ABC Analysis

Overview
In this practice you will compile an ABC analysis.
Assumptions
Tasks
Receive Items
Receive 20 items of your choice in to your ##FGI subinventory. You can use part numbers from
other teams as well as system items that begin with AS, CM, or SB. Be sure to receive different
quantities of each item ranging from 5-100.
Note: Receive at least one system item. These items are associated with standard costs.
Compile an ABC analysis
1.
Compile an ABC Analysis using the following information:

Name:
##FGI ABC
Description:
ABC Complie for Team ##FGI
Content and Valuation Scope: Subinventory
Subinventory:
##FGI
Criterion:
Current on hand quantity
Cost Type:
Frozen
Define ABC Classes

2.
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Define three ABC Classes using the following naming convention:

Name:
##Class A
Description:
A items
Name:
Description:
##Class B
B items
Name:
Description:
##Class C
C items

Define an ABC Group

3.
Define an ABC group using the following information

Group Name:
##ABC Group
Compile Name:
##FGI-ABC
Define an ABC Sequence

4.
Define an ABC Sequence using the following information:
Class Name
##Class A
##Class B
##Class C
Assign Item Valuation

5.
Assign item valuation as follows:

##Class A:
50
##Class B:
80
##Class C:
(system calculates)
Update ABC Codes

6.
Change one item from a C item to an A item, and change one item from a C item to a B
item.
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Solution Compiling an ABC Analysis

Compile an ABC Analysis
1.
2.
Navigate to the ABC Compile window.
(N) ABC Codes > ABC Compiles
(M) File > New
Compile an ABC Analysis using the following information:

Name:
##FGI-ABC
Description:
ABC Complie for Team ##FGI
Content and Valuation Scope: Subinventory
Subinventory:
##FGI
Criterion:
Current on hand quantity
Cost Type:
Frozen
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Select Compile, and note your report request number. ___________________

Select Yes to print results, and note your request number. _________________

Define ABC Classes

3.
4.
5.
Navigate to the ABC Classes window.
(N) ABC Codes > ABC Classes
(M) File > New
Define three ABC Classes using the following naming conventions:

Name:
##Class A
Description:
A items
Name:
Description:
##Class B
B items
Name:
Description:
##Class C
C items
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(M) File > Save.
Define an ABC Group

6.
Navigate to the ABC Assignment Groups window.
(N) ABC Codes > ABC Assignment Groups.



7.
(M) File > New.
Define an ABC group using the following information:

Group Name:
##ABC Group
Compile Name:
##FGI-ABC
Note: Make sure that ##ABC Group (the group that you created) is selected.
Select Group Classes
Define an ABC Sequence

8.
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Define an ABC Sequence using the classes you created earlier.
Class Name
##Class A
##Class B
##Class C
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9.
Save your work.
(M) File > Save
Assign Item Valuation

10. Select Assign Items.
11. Enter the following percentages in the % Items field:
##Class A:
50
##Class B:
80
##Class C:
(system calculates)
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12. Select Assign.

Update ABC Codes
13. Review and update the ABC codes assigned to items in the ##FGI subinventory.
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Select ##ABC Group in the ABC Assignment Groups window.
Select Update Items.
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Change one item from ##Class C to ##Class A.
Change one item from ##Class B to ##Class C.
(M) File > Save.
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Agenda
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Defining and Maintaining a Cycle Count
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Agenda
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Cycle Count Approval Tolerance
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Cycle Count Approval Tolerance

A cycle count is a count of a subset of items, counted during the working day rather than after
freezing stock levels. When the actual count and the systems on-hand quantity do not exactly
agree, the cycle count will be compared to an approval tolerance.
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Approval Tolerances
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Approval Tolerances
Oracle Inventory supports two types of cycle count approval tolerances, Quantity Variance
Tolerance and Adjustment Value Tolerance. For each type, you can specify a positive and a
negative limit which can differ from each other. When a particular cycle count entry results in
an adjustment that exceeds any one of these limits, you have a cycle count adjustment that
exceeds approval tolerances. Based on the approval option you choose when you define your
cycle count, this adjustment is either posted automatically or held for approval.
Quantity Variance Tolerance:
The Quantity Variance Tolerance is a user-defined limit for the difference between the actual
cycle count quantity and the system tracked on-hand quantity. You express positive and
negative quantity variance tolerances as percentages of the system on-hand quantity.
You enter these percentages when you define your:
Cycle Count Header
Cycle Count Classes
Cycle Count Items
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Oracle Inventory uses any percentages you define at the cycle count item level first. If you do
not have any defined for an item, it uses the tolerances defined for that items cycle count class.
If you do not have any defined for the class, it uses the tolerances at the cycle count header
level. If you have no tolerances defined for the header, Oracle Inventory assumes that there is
no limit to the approval tolerance.
Adjustment Value Tolerance:
The Adjustment Value Tolerance is a user-defined limit for the total value of a cycle count
adjustment.
The adjustment value is calculated as:
adjusted value = (system on-hand qty actual count qty) * current item cost
The Adjustment Value Tolerance is expressed as positive and negative amounts in your
functional currency. An adjustment value is out of tolerance if it falls outside of these amounts.
You enter these tolerances when you define your cycle count header and cycle count classes.
Oracle Inventory uses the values you define at the cycle count class level first. If you do not
have any defined for an items class, it uses the values at the cycle count header level. If you
have no tolerances defined for the header, Oracle Inventory assumes that there is no limit to the
approval tolerance.
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Hit/Miss Tolerance
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Hit/Miss Tolerance
The Hit/Miss Tolerance is a user-defined limit for the difference between the system tracked
on-hand quantity and the actual cycle count quantity. You express positive and negative
hit/miss tolerances as percentages of the system on-hand quantity. A count is considered a
hit if it is within these tolerances, and a miss if it is outside them.
The Hit/Miss Tolerance allows you to evaluate the actual accuracy of your inventory.
You enter Hit/Miss tolerance percentages when you define your cycle count header and when
you define your cycle count classes. Oracle Inventory uses the percentages you define at the
cycle count class level first. If you do not have any defined for an items class, it uses the
tolerances at the cycle count header level. If you have no tolerances defined for the header,
Oracle Inventory assumes that there is no limit to the Hit/Miss tolerance, and all variances are
therefore hits regardless of the size.
Inventory uses these tolerances to generate the Cycle Count Hit/Miss Analysis report which
will be covered later in this course.
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Measurement Errors
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Measurement Errors:
Negative and positive measurement errors are user-defined limits for the difference between
the cycle count quantity and the system tracked on-hand quantity. Measurement Error limits
are assigned by Item. Inventory does not make any adjustments to an item whose cycle count
quantity differs from the system tracked on-hand quantity by less than the measurement error.
Because of this, measurement errors may implicitly override any approval tolerances you
specify.
You specify measurement errors when you define or update an item at the Master Item or
Organizational Item level. Use measurement errors with extreme caution since they actually
prevent cycle count adjustments from taking place. You would typically use this feature on an
exception basis for items you cannot accurately count. For example, if you visually check the
level of bolts in a bin to estimate the quantity, or you use their weight to approximate the
quantity, you might want to allow for measurement errors. Therefore, if your system tracked
on-hand quantity for the bolts in that bin is within an acceptable range, you do not perform a
cycle count adjustment.
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Cycle Count Items
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Cycle Count Items

You must load items into your cycle count before you can schedule or count them. There are
two methods you can use to do this:
Specify an existing ABC group from which to automatically load your items
Manually enter, delete, or update the items you want included/excluded
When you specify an existing ABC group, Oracle Inventory automatically includes all items in
the ABC group you choose in your cycle count. Inventory also copies the ABC classes for that
ABC group into the current cycle count classes and maintains the same classifications for the
included items. You can change the classifications of your items for your cycle count
independent of the ABC classes.
Once you have generated your list of items to count from an ABC group, you can periodically
refresh the item list with new or reclassified items from a regenerated ABC group. Using the
Cycle Counts window, you can choose whether to automatically update class information for
existing items in the cycle count based on the new ABC assignments. You can also choose to
have any items that are no longer in the ABC group automatically deleted from the cycle count
list.
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You manually enter, delete, or update the items you want included/excluded using the Cycle
Count Items window. You may want to use this window to load all your items for a cycle count
or to simply add items as they are defined in the system rather than recompiling your ABC
group and doing a complete reinitialization.
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Agenda
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Automatic Scheduling
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Automatic Scheduling
In order for Oracle Inventory to perform automatic scheduling you must do the following:
Set the Cycle Count Enabled item attribute to Yes for the items you want to include in the
cycle count.
Enable automatic scheduling when you define your cycle count.
Request the schedule using the Generate Automatic Schedule Requests window.
- Each time the auto scheduler runs, it schedules counts only for the schedule interval
you defined for the cycle count header. So if your schedule interval is weeks, Oracle
Inventory schedules all items that you need to be counted on all of the workdays in the
current week. If your schedule interval is days, then Oracle Inventory only schedules
those items that are due for counting on the current date.
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Manual Scheduling
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Manual Scheduling
You can request counts for specific subinventories, locators, and items, and set the count for
any inventory date. For example, you could enter a request to count item A wherever it can be
found in subinventory X. Or you could request to count all item quantities in subinventory Y,
locator B-100.
Since manually scheduled counts have no impact on automatically scheduled counts, you can
potentially count some items more frequently than you had initially planned.
Physical Location Scheduling
You can use this feature to execute location-based cycle counting. You first need to generate a
schedule for counting each subinventory and locator. You then need to enter the schedule
requests for each locator, specifying the schedule date.
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Count Requests
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Count Requests
This process takes the output of the automatic scheduler and your manual schedule entries and
generates a count request for each item number, revision, lot number, subinventory and locator
combination for which on-hand quantities exist. These count requests are ordered first by
subinventory and locator, then by item, revision, and lot. Oracle Inventory assigns a unique
sequence number to each count request that can be used for reporting, querying and rapid count
entry.
As the count requests are derived from the state of on-hand balances at the time the Generate
Cycle count Requests process is run, you should wait to run it until you are ready to count.
Note: When you schedule an item to be counted using manual scheduling, some schedule
requests may have overlapping count requirements. The count request generator does not
create duplicate count requests, but instead cross-references one count request back to each
associated schedule request.
Count Requests for Items with Zero Count
By default Oracle Inventory does not automatically generate requests to count items with an
on-hand quantity of zero. To include such items:
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Define all sourcing details and inventory controls for the item. For example, if an item is
under predefined locator control be sure it is assigned to a subinventory and locator.
Select the Generate Zero Counts option when you define your cycle count.
The count request generation process automatically creates a count request. If a quantity is
found and counted, an adjustment is made.
At count entry, you may receive a warning message stating Zero count, no adjustment
performed. Oracle Inventory generates this warning if it cannot find all levels of inventory
control defined for the item. In this situation, enter the count but no adjustment is performed.
To make an adjustment and update the missing information, enter an unscheduled count using
either the Cycle Count Entries or Approve Adjustments window.
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Entering Cycle Counts
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Entering Cycle Counts

You can use the same window to enter counts of items requested through automatic or manual
cycle count scheduling.You can also enter unscheduled count entries, if they are allowed for
your cycle counts. You can use unscheduled counts to perform location based cycle counts.
You can also use a mobile device to enter cycle count quantities.
Oracle Inventory automatically queries all count requests for which you have not yet entered a
count. You can use flexible search criteria to specify the group of count requests for which you
want counts entered to speed up the count entry process. For example, you can specify a range
of count request sequences assigned to one person so they can be entered in the same order
they were printed on the count sheet.
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Cycle Count Open Interface
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Cycle Count Open Interface

You can import/export cycle count entries from external systems into Oracle Inventory using
the Cycle Count Entries Open Interface.
Export Cycle Count Request
This process enables you to export cycle count requests into external systems.
Update Cycle Count Open Interface
This process enables you to update cycle count entries.
Import Cycle Count Entries from Open Interface
This process enables you to import cycle count entries open interface records into the database.
Purge Cycle Count Entries Open Interface Data
This process enables you to purge all cycle count entries from the open interface.
Print Cycle Count Entries Open Interface Data
This process enables you to print cycle count entries open interface data.
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Agenda
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Count Adjustments and Approvals
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Count Adjustments and Approvals

Once you enter and save your cycle counts, Oracle Inventory determines whether any
adjustments need to be made depending on the approval options and tolerances you set when
you define the cycle count.
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Automatic Recounts
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Automatic Recounts
If you turn on the Automatic Recount option when you define your cycle count, Oracle
Inventory automatically submits recount requests for items that are outside the limits of the
approval tolerances you specify. Oracle Inventory submits recounts as many times as
necessary, limited by the maximum automatic recounts you specify for the cycle count. After
you reach the maximum number of recounts, Oracle Inventory holds the count for approval.
Any count request with the Recount status automatically appears on the next cycle count
listing. You can manually request recounts when you are approving adjustments. This recount
request will be included in the next cycle count listing.
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Approving Cycle Counts and Adjustments
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Approving Cycle Counts Held for Approval

Employees with access to the Count Adjustment Approvals Summary window can query,
request the recount of, or approve cycle counts pending approval. You can query all counts or
only those pending approval. You can approve adjustments, recount an item in question, reject
the count or take no action until further investigation takes place.
Approving Cycle Count Adjustments
You use the Count Adjustment Approvals Summary window to approve cycle count
adjustments, to request/approve recounts, or to reject the adjustment. Oracle Inventory
determines which counts need approval by using the approval tolerances you entered while
defining your cycle count. You can use flexible search criteria to specify the cycle count
adjustments you want to review or approve.
Using the Count Adjustment Approvals Summary window, you can view a variety of current
item information to help determine whether to approve an adjustment. Select the information
from the following tabbed regions:
Adjustment: View information for the count adjustment UOM, variance quantity, variance
value, variance percentage, and system quantity.
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Item Location: View information for subinventory and locator. You can also view the unit
of measure and adjustment quantity.
Item Details: View information for a revision, lot number, and serial number. You can also
view the unit of measure and adjustment quantity.
Reason, Reference: View or update the transaction reason and reference information. You
can also view the unit of measure and adjustment quantity.
Count: View information for UOM, count quantity, counter, and count date.
Count Status, Class: View information for the sequence number, count status, and cycle
count class.
Approval: View information for date approved and approver.
Approval Actions and Adjustments Options
For items appearing in the Approval Actions, Adjustments region, you can approve, request a
recount, or reject cycle count entries that are pending approval. You can also approve or reject
any count for which a recount has already been requested. You can reject any cycle count
request that has not yet been counted. You can display count history information or open the
Count Adjustment Approvals window.
Select Approved to approve the selected count entry and post the adjustment to the
transaction manager for processing.
Select Rejected to reject the selected count record. An adjustment is not posted. No further
processing of this count entry takes place.
Select Recount to process a recount request for the selected count request. An adjustment is
not posted.
Select the Count History button to open the Count History window for the current item. For
the current item, this window displays count and variance information for the current, prior
and first counts.
Select the Open button to open the Count Adjustment Approvals window for the current
line. This window is a combination block which you can use to view and enter approval
and adjustment information for the current line instead of using the Count Adjustment
Approvals Summary window.
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Guided Demonstration Overview: Performing Cycle Counts
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Guided Demonstration - Cycle Counting

1.
(N) Counting > Cycle Counting > Cycle Counts.
2.
Choose New.
3.
Enter the following cycle count information.

Name:
FGI Cycle Count
Description:
Finished Goods Cycle Count
Adjustment Account: Miscellaneous
Late Days:
1
Starting Sequence:
0
Unscheduled Entries: Yes
Display System Qty:
Yes
4.
Select Specific in the Count Subinventories alternative region.
5.
Select the FGI subinventory from the drop down list.
6.
(T) Serial and Schedule
7.
Enter the following Serial and Schedule information:

Auto Schedule:
Yes
Frequency:
By period
8.
(T) Adjustments and ABC
9.
Enter the following approval tolerances:

Qty Variance:
3
Adjustment Value:
50
Hit / Miss Analysis:
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10. Enter the following ABC Information:

Group:
Group created during ABC analysis (Finished Goods ABC)
Option:
(Re)initialize
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11. Choose Classes.
12. Enter the following ABC Class information:

Class:
Class A class created during ABC analysis (Finished Goods A)
Count:
150
Class:
Class B class created during ABC analysis (Finished Goods B)
Count:
100
Class:
Class C class created during ABC analysis (Finished Goods C)

Count:
50
13. (M) File Save.

14. (M) Tools > Perform Full Cycle Count
15. Enter the cycle count name for the following parameters
Generate automatic schedule recount
Generate cycle count request
Cycle count listing.
16. Choose Submit.
Entering Cycle Count Entries Using a Mobile Device
18. Select Inventory.
19. Select Counting
20. Select Cycle Count
21. Select Normal
22. Enter the following cycle count information:
Org Code:
M1
Cycle count name:
FGI Cycle Count
Subinventory:
FGI
Item:
AS18947
Quantity:
Enter a number plus or minus the system quantity.
23. Select Done.
Cycle Count Entries and Approvals
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24. (N) Counting > Cycle Counting > Cycle Count Entries
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25. Enter FGI Cycle Count in the Cycle Count field.

26. Choose find.
27. At the question: Find all open count requests? choose Yes to view all open cycle count
items.
Note: Notice the item amount entered during the mobile counting demonstration does not
appear.
28. Choose Adjustments.

29. Enter the count quantities.

32. (N) Counting > Cycle Counting > Approve Counts
33. Enter FGI Cycle Count in the Cycle Count field.
34. Choose Find.
35. At the question: Query count pending approval only? choose No to view all cycle count
items.
Note: Notice the item quantity entered in the mobile counting demonstration appears in the
Count tabbed region.
36. Choose Approved to approve an item adjustment.
37. Select the Approver from the drop down list in the Approval tabbed region.
38. (M) File Save.
39. Choose OK.
40. Close the Approvals window.
41. Approve or reject the remaining items.
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Practice Overview: Performing Cycle Counts
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Practice - Performing a Cycle Count

Overview
In this practice you will perform a cycle count using the ABC compile group you created in a
previous lab.
Assumptions
You completed the Compile an ABC Analysis practice.
You completed the Define Items practice.
You have at least 20 items in your ##FGI subinventory
Tasks
Define a Cycle Count Header
Define a cycle count header using the following information:
Name:
##Cycle Count
Description
Team ##Cycle Count
Adjustment Account: Miscellaneous
Late Days:
1
Starting Sequence:
##
Unscheduled entries
Yes
Display System qty:
Yes
Count Subinventories: Specific
Subinventory:
##FGI
Auto Schedule:
Yes
Frequency:
By Period
Approval Required:
If out of Tolerance
QTY
3%
Adjust Value:
50
Hit/Miss:
10%
Group:
##ABC Group
Option:
(Re)initialize
Class A:
150 counts per year
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Class B:
Class C:
100 counts per year

50 counts per year
Perform a Cycle Count

Use the following parameters to perform a cycle count:
Name:
Generate Automatic Schedule
Cycle Name:
##Cycle Count
Name:
Cycle Name:
Generate CycleCount Requests

##Cycle Count
Name:
Cycle Name:
Cycle Count Listing

##Cycle Count
Enter Cycle Count Entries

View the system quantities and enter quantities for the cycle count. Have some of the items out
of tolerance, and have at least one item match the system quantity.
Approve, Reject or Recount Cycle Count
Why are some of the items already approved? ________________________________________
Approve, Reject or recount all entries for your cycle count.
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Solution Performing a Cycle Count

Define a Cycle Count Header
1.
Navigate to the Cycle Counts Window.
(N) Counting > Cycle Counting > Cycle Counts
2.
Select New.
3.
Enter a new cycle count header using the following information:
(T) Scope and Control

Name:
Description
Adjustment Account:
Late Days:
Starting Sequence:
Unscheduled entries
Display System qty:
Count Subinventories:
Subinventory:
##Cycle Count
Team ##Cycle Count
Miscellaneous
1
##
Yes
Yes
Specific
##FGI
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(T) Serial and Schedule

Count:
Auto Schedule:
Frequency:
Not Allowed
Yes
By Period
(T) Adjustments and ABC

Approval Required:
QTY
Adjust Value:
Hit/Miss:
Group:
Option:
If out of Tolerance
3%
50
10%
##ABC Group
(Re)initialize
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Select Classes
##Class A:
##Class B:
##Class C:
150 counts per year

100 counts per year
50 counts per year
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4.
(M) File > Save
Perform A Cycle Count

5.
(M) Tools > Perform Full Cycle Count
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6.
Enter the following parameters

Generate automatic schedule (Parameters field):
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##Cycle Count
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Generate cycle count requests (Parameters field):

##Cycle Count
Cycle Count Listing (Parameters field):
7.
##Cycle Count
Select Submit
Note: Do not proceed until after your concurrent request completes.
Enter Cycle Count Entries

8.
Navigate to the Cycle Count Entries window.
9.
(N) Counting > Cycle Counting > Cycle Count Entries
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Enter ##Cycle Count in the Cycle Count name field, or select your cycle count from the list
of values.
10. Select Find to populate your items.
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11. Choose Yes to see all open count requests.

12. (T) Adjustments
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13. Enter Count quantities for your items. Enter a few quantities that are out of tolerance, a few
quantities within tolerance, and at least one that matches the system quantity.
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(M) File > Save
Approve, Reject or Recount Cycle Count
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15. Navigate to the cycle count approvals window.
(N) Counting > Cycle Counting > Approve Counts
16. Select your cycle count from the LOVs in the Cycle Count field.
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17. Select Find to open your cycle count items.

18. Select No to view all items.

19. Why are some of the items already approved? They fall within set approval limits.
20. Approve, reject or recount your items.
(M) File > Save
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Practice Overview: Mobile Counting
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Practice - Mobile Counting

Overview
Use the mobile device to perform a cycle count for your ##FGI subinventory.
Assumptions
You have completed the ABC Analysis Lab.
You have completed part one of the Cycle Counting lab.
Tasks
Entering Item Quantities Using the Mobile.
Enter cycle count quantities for an item.
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Solution Mobile Counting

Entering Item Quantities Using the Mobile
1.

instance number.
2.
3.
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4.
5.
If more than one responsibility had been assigned to your user name, select Materials & Mfg
from the list.
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Select Inventory from the Materials & Mfg Menu.

6.
7.
Select Counting from the Inventory Menu.
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Select Cycle Count from the Counting Menu.

8.
9.
Select Normal from the Cycle Count menu.
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Enter the following information when prompted.

Note:
The mobile application screen is case sensitive.

Org Code:
M1
Cycle Count Name:
##Cycle Count
Sub:
##FGI
Item:
Enter an item in your ##FGI subinventory
Qty:
Enter a quantity

10. Select Done to apply your cycle count.

11. Select Logout to exit the Mobile.
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Agenda
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Summary
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11i Inventory Management Fundamentals - Volume2 - D

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11i Inventory Management

Copyright Oracle Corporation, 2005. All rights reserved.

11i Overview of Defining and Maintaining Items .........................................................................................3-1

11i Inventory Management Fundamentals Table of Contents

Steps to Setup, Define, and Maintain Items..................................................................................................3-12

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

11i Transaction Setup......................................................................................................................................8-1

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Guided Demonstration Overview: Receiving Returns to Inventory ..............................................................9-55

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Mobile Replenishment Count Overview .......................................................................................................10-28

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Subinventories Window ................................................................................................................................11-75

11i Inventory Accuracy Concepts ..................................................................................................................12-1

11i Inventory Management Fundamentals Table of Contents

Cycle Counting Overview .............................................................................................................................12-9

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Working experience with Oracle Applications.

There are no prerequisites for this course.

How This Course Is Organized

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Oracle Inventory Users Guide

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

This subject is covered in Unit II, Lesson 3, Working with

Use the SELECT command to view information stored in the

Select File > Save.

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Typographic Conventions in Code

DROP USER scott

CREATE ROLE role

SQL commands and SELECT userid

Typographic Conventions in Oracle Application Navigation Paths

(M) From the menu, select Query then Find.

(B) Click the Approve button.

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Typographical Conventions in Oracle Application Help System Paths

Under the General Ledger entry, expand Journals.

Under Journals, select Enter Journals.

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

Copyright Oracle, 2005. All rights reserved.

11i Inventory Management Fundamentals Table of Contents

11i Issue and Transfer

Copyright Oracle Corporation, 2005. All rights reserved.

11i Issue and Transfer Material

11i Issue and Transfer Material

Copyright Oracle Corporation, 2005. All rights reserved.

11i Issue and Transfer Material

Copyright Oracle Corporation, 2005. All rights reserved.

11i Issue and Transfer Material