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Oracle Inventory Module
Anything that you can transact (Purchase, Sell, Plan, Manufacture, Stock, Distribute, Prototype) that item is an Inventory. Ex: From
Raw materials to wastage materials.
Inventory Management - How to receive, transact, issue out, store, Control, maintain, Standardize, Valuate, Count, Replenish,
Serialization and accuracy the material is called as " Inventory Management"
1) Item: Item is a part/ service you can purchase, sell, plan, mfg, stock, distribute.
2) Item categories: Grouping of similar items. (Family. Class, Metal. Ferrous, Liquid. Consumable etc)
3) CCID: Code Category Id is the id in which the item stores (Family. Class)
by default all CCID's are not transact able, after creating we have to assign
4) Category sets: Group of similar (item) categories.
Default
Category
set (DCS)
Default
Category
Code(DCC)
Function DCS
Invnetory Inv.Items
Purchasing Purchsing
Contracts Contracts
Asset Management EAM
Product family Product
All other fn Inv.Items
Default category set: for each functional area default category sets are there
Note:
Whenever an item is attached to a function DCS- DCC combination gets attached to the item. They cannot be deleted. They are
mandatory ( Item master -tools- category assignment)
Assigning is automatic, whereas un assigning is manual. ( except BOM type)
Controlled at Master level (after assigning u cannot change in org) and org level (can be changed in org)
Item can be assigned to many categories and a Category can be assigned to many items. (many-many)
An item cannot appear in more than one category in a default category set.
5) Item cross reference: referring an item (oracle) with old legacy number ( free text). ( Inv-Items-cross reference, enter and
assign
6) Customer item cross reference: relegating customer item (PO item) with our (oracle) number.
Note: For both Item cross references u can enter customer item/ legacy item is S.O line. In shipping transaction line the oracle
number will be referenced.
When the item is referenced/ related the color will change in S.O line
7) Item relationship: relating two oracle numbers by up sell, substitute (after enter state if u change the item the new line will be
created), cross sell, related, superseded (after committing u can change).
8) Manufacturing Part number: used in souring rule if u choose distributor.
9) Attributes: are information.
10) Item attributes: collection of information about an item.
1. Mater Items :
Item can be a component, service, Assembly which could be Purchase, Sell, Plan, Manufacture, Stock, Distribute, Prototype
Status control attributes: (8) all are Master level
Inventory: Stockable, Transactable
Purchase: Purchasable, Invoice Enabled
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Order Management: Customer Order Enabled and Internal Orders Enabled.
BOM and WIP: BOM allowed and Build in WIP
Status Attributes are item attributes that enable key functionality of an item. Status attributes are dependent on at least one other
attribute.
Item Defining Functional Area / Oracle
Status Attribute Functionality
Attribute Product
Stockable Inventory Item Inventory Allows you to store the item in an asset sub inventory.
Inventory, Order Allows you to transact the item in Oracle Inventory, Oracle
Transactable Inventory Item Management, Purchasing, Order Management, Oracle Purchasing and Oracle Work in
Work in Process Process.
Purchasable Purchased Purchasing Allows you to place the item on a purchase order.
Allows you to build the item on a discrete job, and/or
Build in WIP - Work in Process
repetitive schedule.
Customer Orders Customer Ordered
Order Management Allows you to place the item on a sales order.
Enabled Item
Internal Orders Internal Ordered Inventory, Order
Allows you to create an internal sales order for the item
Enabled Item Management, Purchasing
BOM Allowed Inventory Item Bills of Material Allows you to create a bill of material for the item
Invoice enabled Invoiceable Item Receivables Allows you to create an invoice for the item
Inventory (N) -> Items -> Master items
1. Select the attributes and save
2. Assign it to the required Org.
Main (T) :
Item Status Master
Primary Unit of Measure Master
Inventory (T)
Inventory Item Master
Stockable Master
Transactable Master
Reservable Org
Revision Control Org
Lot Control Org No control / full control
Starting Lot Number Org
Starting Lot Prefix Org
Serial No Generation Org No control/at receipt/at sales order issue/predefined
Starting Serial Number Org
Starting Serial Prefix Org
Lot Expiration Org No / Self life days / user defined
Shelf Life Days Org
Restrict Sub inventories Org
Locator Control Org No control / prespecified / dynamic entry
Restrict Locators Org
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Costing (T)
Costing Enabled Org
Inventory Asset Value Org
Include in Rollup Org
Cost of Goods Sold A/c Org
Standard Lot Size Org
Purchasing (T)
Purchased Master
Purchasable Master
Default Buyer Org
Use Approved Supplier Org
List Price Org
Outside Processing Item Org
Receiving (T)
Receipt Routing Org Direct / Standard / Inspection / none
Receiving sub inventory
Lead-time (T)
Preprocessing Lead Time Org
Processing Lead Time Org
Post processing Lead Time Org
Fixed Lead Time Org
Variable Lead Time Org
Cum Manufacturing Lead Time Org
Cumulative Total Lead Time Org
Lead Time Lot Size Org
Invoicing (T)
Invoiceable Item Master
Invoice Enabled Master
Service (T)
Tools Menu :
1. Categories to assign to item categories
2. Catalog to assign to item catalog
3. Pending status item status history
4. Revisions
5. Item sub inventories
6. Item relationships Related / Substitute / cross-sell / up-sell / Service etc.,
7. Manufacture part numbers Manufacture & Part number
8. Cross references
9. Item cost to update the cost elements
10. Organization Assignment
11. Find Attribute select the attribute and find, you need not search each tab
12. Copy from used to copy from template or template
Profile Option:
INV: Default Item Status: Indicates the default item status for new items you define
INV: Default Primary Unit of Measure: Indicates the default primary unit of measure for new items you define
INV: Item Master Flex filed: Indicates which flex field is used to define items in MTL_SYTEM_ITEMS
INV: Updateable Customer Item: Indicates if you can change the customer item number.
INV: Updateable Item Name: Indicates whether you can update the item flex field.
When you define items, Oracle Inventory enforces particular relationships between some of the item attributes:
Required attribute--you must enter a value for the attribute based on the settings for other related attributes.
Interdependent attributes--you can enter only certain values depending on other attribute values.
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Control level dependencies--you can update the control level of some attributes only under special conditions and with
certain consequences.
1.6 Item copy: a) if a template / item is copied on new item, only the enabled and filled attributes get copied.
b) If template / item is copied on existing item, the enabled fields in the item wont get disturbed, the values will be
overridden by the new values.
c) If template and item is copied at same time first the template will be copied followed by item.
d) u cannot copy items across IMO.
2. Unit of Measurement :
1. A unit of measure is a value that specifies the quantity of an item. For example, "each" is a unit of measure that you
would use to specify the number of units of an item
2. A UOM class is a group of units of measure with similar characteristics. Example, "Weight" can be a unit of measure
class with UOMs such as Kilogram, Gram, Pound and Ounce. From this Class, you should have any one in primary uom
and transaction uom. So you could see one UOM in transaction and another uom in final storage uom.
3. A UOM conversion has 2 classes.
a. Intra class - is a mathematical relationship between two different UOMs (1kg=1000g)
b. Inter class is an user defined logic which won't have any standard relationship (1box=5each)
Set-up :
1. UOM class :
Inventory (N) -> Setup -> Unit of measure -> Classes
1. Insert new record
Name : Description : Base unit & UOM code
2. Unit of Measure (B)
The first uom will be defaulted from the class as base unit for the class.
Name : UOM code :
3. Conversions
a. Standard creating a standard conversion among the UOMs of the class which is applicable for all the Items
b. Intra-class different conversion can be specified for specific items which has the UOM of this class as base UOM
of the item
c. Inter-class conversion between 2 different classes
Example :
Class : XX_Quantity
UOM : Each (base uom), Dozen, Case, Gross
Conversion :
Standard : X_Dozen=12 X_each,X_ Case=24 X_each, X_Gross=144 X_each
Intra-class : Box01=25 X_each
Inter-class : Basket02=5 X_each
3.1 Locator control : A technique used to enforce the storage of items in a SI . It is a way of stocking pattern. Eg: heavy items
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should be stored at bottom rack etc.
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8) Lot Genealogy: enables to view transaction history.
INV: Genealogy delimiter
INV: Genealogy prefix or suffix
9) Reports: Lot transaction register,
4. Transaction :
1. Transaction is an item movement into, within, out of inventory. It changes the qty, location, planning responsibility and cost of an
item.
2. Transaction managers control the number of transaction workers, processing intervals and number of transactions processed by
each worker during each interval. These run at the periodic intervals that you specify until you disable with the concurrent
manager.
1. Move orders requests for the movement of material within a single organization. It is mostly for the purposes like replenishment,
material storage and quality handling. Move orders are generated manually or automatically depending on the source type used.
2. A manually generated request, available for sub inventory and account transfers. These requests can optionally go through a
workflow based on approval process before they become move orders that are ready to be sourced and transacted.
3. Set-up :
1. Create a transaction source type. [Inventory (N)->Setup->Transactions->Source type->user(T)]
2. Create transaction types based on the required actions for the source type [Transaction types (B)]
Note: 1. Sub inventory level planning cannot generate jobs and does not consider WIP jobs as supply or WIP components
as demand.
2. The INV:Purchasing by Revision profile option determines whether a revision will be specified when a purchase
requisition is created for revision-controlled items.
3. Accounting information for the Organization is must (SOB, LE, OU)
4. Expired lots will not be considered for Min-max, ROP. But disabled lots will be considered.
Definition :
Is a type of planning which replenishes stock before the stock goes below safety stock.
Used for Items under independent demand, item which needs high control and critical
It uses demand forecasts to decide when to order.
It is done ar Org level but org should be MRP planned.
ROP
Safety stock
Time
Lead-time : The interval between re-order point to safety stock.
Re-order qty: The difference between the maximum qty and the safety stock.
Required information:
1. Safety stock (to protect the fluctuations in the supply and demand)
2. Replenishment lead-time (the consumption time between the re-order point -to- safety stock)
3. Item demand
4. Order cost
5. Carrying cost
When to order : (on hand qty expected supply) < Re-order point
Re-order Quantity= EOQ= SQRT{ [ 2* annual demand*ordering cost] / [ inv carrying cost* unit price]}
Re-order qty can be constrained by Fixed lot multiplier, Minimum order qty and Maximum order qty
Setup steps :
1. Enter Item Planning attributes
2. Forecast Item demand
3. Define safety stock
4. Run Re-order point report
Define forecast:
1. Item planning attributes {Organization Items (N) -> General planning (T)}
Planning Method : Reorder point
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Carrying cost % : % of std cost
Order cost : cost of preparation of order
Enter Fixed order qty, fixed lot multipliers, min order qty, Maximum order qty must be null (If it is less than the reorder point,
then order generates for that qty)
Lead-time (T)
Preprocessing, Processing, post processing, lead time lot size
2. Forecast Item demand
2.a. Create forecast set - collection of forecast. Level: Item/ customer/ ship to / bill to
Parameter:
Item selection : All items in ROP / items under ROP
Demand Cutoff date : enter date up to when demand has to be taken for calculation
Supply cutoff date : enter date up to when demand has to be taken for calculation ( PO, in transit shipment)
Restock : No / Yes for ADS
Forecast : enter the forecast name
Default del loc :
First sort :
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Items from to :
Planners :
Buyer :
Requests :
b) Statistical forecasting- Enables to use detailed history and applies factors to exponentially smooth data.
1) Exponential smoothing forecast (ESF) - uses exp smoothing factor ( alpha )
2) Trend Enhanced Forecast (TEF) uses exp smoothing factor (alpha) and trend factor (beta) {0 1}
3) Season- Enhanced Forecast (SEF)- uses seasonality factor
4) Trend & Season Enhanced forecast (TSEF) combination of 2 + 3
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Steps for generating forecast:
1. Define Forecast set, forecast
2. Define forecast rule
3. Generate forecast concurrent
Parameters:
Forecast name :
Forecast rule :
Selection : All items / specific items
Overwrite :y/n
Start date
Cutoff date :
4. View entries.
Definition :
1. It is used to replenish the non-tracked so inventory items. Eq: oil barrel in shop floor
2. This method is at sub inventory level.
Setup steps :
1. Specify requisition approval status
2. Define non-tracked sub inventory for which we need to perform replenishment count
3. Define Item/ sub inventory replenishment information ( min-max)
4. Enter replenishment counts
5. Process and report
6. Transact move order.
Process :
1. Profile option INV: Replenishment count requisition approval = pre-approved
INV: Replenishment count line failure = continue processing / Halt processing
INV: Replenishment move order grouping: org / default sub inv
2. Create a sub-inventory,
Uncheck quantity tracked, select default RC type order quantity/ order maximum/ on-hand qty
3. Define Item-sub inventory relationship
attach item, Min-max should be checked, enter min qty and max qty, optionally enter multipliers, define sourcing type:
suppler/subinv/ inv
4. Replenishment information
Counting (T) -> Replenishment counts -> Counts
a)Enter name, select sub inventory ( status: hold)
b) Click default items items assigned to that SI will be displayed
c) Select Count type : On-hand quantity move order generates for (Max qty on hand)
Order quantity - move order generates for order qty and won't consider the max qty
Order Maximum - move order generates for the max qty and qty field is grayed out
d) Enter count entries, Save and exit
5. Process & Report (B)
It generates 2 requests, Process replenishment counts & Item replenishment count report
6. Transact move-order
Note: If RC is run on Tracked sub inv then, only Order quantity and Order maximum will be there.
If u uncheck Min-max then, only option available will be Order qty.
Before entering line if u commit , status will be error.
Count can be used only once.
Definition :
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It is Periodic Automated Replenishment at locator level. Example, model a hospital storeroom as subinventory and the shelves
and trolleys are locators.
Can perform each item stored, when quantity goes below PAR level.
Cannot perform Min-max for that Sub-inv ( since min max should be unchecked)
Setup :
1. Enable PAR level planning for the sub inventories
2. Define locators for the sub inventory
3. Enter the PAR level.
4. Enter Replenishment count
5. Enter count ( default items) Replenishment count: On hand qty/ Order qty/ Order PAR
6. Process and report
Note: If u does not enter PAR qty, then u can choose only Order qty
If it is done at tracked sub inv, then RC type= Order qty / Order PAR.
5.4 KANBAN:
Definition :
1. Kan-ban itself is a self regulating pull leads to shorter lead time and reduced inventory.
2. Multi-stage replenishment process
3. It is applied to items which has relatively constant demand and medium & high production volume.
4. Kanban can be replenished from the supplier, sub inventory or an internal organization, production, flow schedules, user
defined
5. Locator control can be used even it locator is turned off at the organization and item levels.
6. Cards can be created for Item, Sub inventory, locator
7. Supply status New, Full, Wait, In-transit, Empty, In-process
Sets:
1. Set item attributes ( MRP/MPS- release time fence = Kan-ban do not release)
2. Define pull sequence
3. Generate cards
4. Replenish
5. check for requisitions/ replenishment.
Kan-ban status:
Card status Active , Hold, Cancel
Supply status New, full, Empty, In process, Wait, In transit, Exception
a) Empty -triggers replenishment
b) wait for replenishment
Set up:
1. Creation of pull sequences {Kan-ban(N) -> pull sequences -> New(B)}
Source (T) - enter item, sub inventory, source type, supplier site.
Kan-ban (T)- (a) calculate : kan-ban size / No of cards / do no calculate
(b) size
( c) number of cards
2. Generate cards (B)
It automatically runs Print Kan-ban Cards request
3. Replenish kan-ban cards
Kan-ban(N) -> Kan-ban cards
Select the cards and replenish, The replenishment activity runs based on the minimum order qty
a) manually change form New -> full -> empty---> In process-- > Move order--> transact-- > status=full
Auto Requests: Compile ABC analysis & ABC descending value report
2. Define ABC classes : like High value, Medium value, Low value
b) Group classes
c) Assign items for selected classes Sequence/ Inv value/ Items/ Value
Click Update items (B) to see the items under each class.
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Serial and schedule (T)
Serial control options : whether run cycle count for serial controlled items
a) Count: none/ one per request /Multiple per request
b) Detail: Qty & S.No / Qty only
c) Adjustments: review all adj / Adj if possible
d) Discrepancy: Allowed / not allowed
Auto schedule: for repetitive schedule
Adjustments and ABC (T)
Approval: none/ if and out of tolerance / always
Qty variance tolerance = (system on-hand) (actual count)
Adjusted value tolerance = Qty variance tolerance * current item cost
Hit / Miss tolerance = % of Qty variance tolerance
ABC Initialization
Classes (B)
like classes in ABC and approval variance if required
2. Perform cycle count {Tools(M) -> Perform full cycle count}
Request set: Generate automatic schedule requests
Generate cycle count requests
Cycle count listing
3. Enter cycle count entries {Counting (N) -> Cycle counting -> Cycle count entries}
query count, enter count( Item SI) , count reference( Counted by, date) , adjustments( count-qty, value)
4. Approve, Reject or Recount cycle count {Counting (N) -> Cycle counting -> Approve counts}
5. Commit Concurrent ABC Adjustments
6.
Definition : Reconciliation of system on-hand balances with physical counts in inventory. It can be done for the entire organization
or a Inventory. It is performed once every six months or a year depending upon the orgs requirements. Accurate on-hand quantities
are required for Tax and audit purposes
Setup / Process:
1. Define Physical inventory {Inventory(N) -> Counting -> Physical inventory -> Physical inventories}
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2. Snapshots (B) This will run Freeze physical inventory requests. The output shows the system on-hand qty.
3. Click Tags (B) to set the Tags starting, digits increment
4. Tag generation Click Generate this will run Generate physical inventory tags request
5. Tag count - select our count name and click find.
- enter quantity ( note: for S.No only 0 or 1 is possible) , u can void and unvoid to select items to be counted
- The Main tab shows the item at a sub inventory & locator level. The Detail tab shows the item at a Lot and Serial
control level. -
6. Approval Adjustment - select our count name and click find.
- Approval should be either approved or reject, if any item is selected none then Launch adj will be error.
7. Launch Adjustment ( Tools-->) is concurrent for adjustment
You can't perform the adjustment for reserved / allocated qtys
9. Mobile Transaction
Oracle Mobile Materials Management provides the ability to do inventory receiving and shipping transactions using mobile
devices.
You can record inspections, deliveries and material movements when entering receiving transactions.
Information is sent from mobile industrial devices to the Telnet Listener. The information is processed and updated in the
application database.
This avoids duplicate data entry and helps to enter the transactions at the spot with accuracy.
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