MFG VCP Advisor Webcast 2014 0109

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Oracle Advisor Webcast
DRP General Overview and Test Case For
Beginners
Joe McManus
Objectives
 Inventory Rebalancing
 Fair Share Allocation
 Load Consolidation of Shipments
Between Internal Organizations
 Multiple Inventory Levels
 Creation/Rescheduling of
IR's/ISO's From Within the DRP
Plan

Agenda
General Overview of DRP/DPP Planning including significant/new features:

1. Fair share allocation
2. Multiple inventory levels - so you can allocate at safety stock, target and
maximum levels
3. Inventory Rebalancing (ie circular sourcing supported)
4. Load consolidation of shipments between internal organizations (eg
Distribution Centers)
5. Manage creation/rescheduling of IR's/ISO's
6. Cover Basic Setups
7. Test Case Rebalancing

New and Changed Features for
Distribution Planning
 Distribution Planning – Existing in 11i.10
– Complete supply chain visibility
– Bills of distribution and sourcing rules
– Global forecasting
– End-item substitution
– Alternate components, suppliers, facilities, and ship methods
– Model customer and supplier facilities
– Supplier capacity constraints
 Distribution Planning - Added in Release 12
– Fair Share Allocation
– Inter-organization load consolidation
– Inventory re-balancing
– Distribution focused usability enhancements
 New Distribution Planners Workbench
– Release and reschedule internal sales orders

Important Note
 To leverage Release 12 Distribution Planning Enhancements,

licensing of both Oracle® Advanced Supply Chain Planning and
Oracle® Constraint Based Optimization (MSC/MSO) is required

Distribution Planning Enhancements
Description – Distribution Planning Purpose
 Determine optimal supply allocation from plants
to distribution centers using:
– Fair share allocation
– Inventory policy at multiple levels (max,
target, safety stock)
– Inventory rebalancing
– Shipping method selection and load
consolidation
– Global forecast -> local allocation of supply
across distribution network
 Automatically generate transfers
– Create internal transfers
– Create consolidated shipments
– Integrated with Oracle Transportation
Management for carrier and mode selection

Description – Plan Type Comparison
MPS, MRP, MPP Distribution Planning (DPP)

Constrained by: Constrained by:
- Resource capacity - Inter-organization load sizing
- Supplier capacity - Supplier capacity
Considers kitting BOM’s and fixed lead

Considers BOMs, routings, and resources
times
FIFO demand prioritization Fair share allocation rules
Considers SS, target and maximum

Considers safety stock inventory levels
inventory levels
Creates detailed production schedule Creates detailed distribution schedule

Description – Example 1

Description – Example 2

Description - Fair Share Allocation
 Use fair share allocation to improve customer service levels and
automatically allocate scarce supplies
 Fair share allocation based on
– Current demand ratio
– Equal allocation %
– Inventory policy (relative safety stock levels)
Example: available supply is 120

Without Fair Share Current Demand Ratio Fair Share
Priority 1 Demands Supply Priority 1 Demands Supply
120 at DC1 120 to DC1 120 at DC1 65 to DC1

100 at DC2 100 at DC2 55 to DC2

Description - Inventory Policies at Multiple Levels
 Push supply from plants and central DCs through your distribution
network
– Push built ahead material from plants to DCs using maximum versus target
versus safety stock inventory levels
 Safety stock levels drive the production plan
 Target inventory moves excess outwards from plants
 Set maximum inventory levels for upper bounds
Inventory Levels
Maximum
Target
Safety Stock
Projected On Hand
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Time (Days)

Description - Inventory Rebalancing
 Reduce inventory costs by rebalancing before pulling additional supplies

Description - Load Consolidation for Inter-Org Transfers
 Distribute using load size constraints
– Schedule and ship early to utilize existing loads
– Violate load size constraints to meet sales order and safety stock
requirements
 Release updated inter-organization transfer dates and related trip

and delivery information

Description – Distribution Planner Workbench
 Distribution Plan Summary
– Most important exceptions
 Horizontal Plan
– Multiple organizations view
– Inbound / outbound shipments by organization
 Allocation Plan
– Allocations for the enterprise by customer
– Allocations by organization
 Find opportunities for load consolidation
 Release and reschedule both internal requisitions and internal sales
orders simultaneously

Description – Integration with Transportation Management

Benefits
 Improved service levels through fair share allocation
 Improved global visibility and enforcement of inventory and
distribution policies
 Reduced inventory cost and improved customer service through
proactive inventory rebalancing
 Reduced shipping cost through load balancing
 Improved planner usability
– Distribution Planner Workbench
– Simultaneous release and reschedule of internal orders and internal
requisitions

Release 12 Transfer of Information
Oracle Advanced Planning
Advanced Supply Chain Planning

Functional Overview

Part 2: Set Up
Distribution Planning Enhancements - Set Up

Distribution Planning Set Up
Set Key Profile Options
 MSC: Distribution Planning Ship Date - Specify when to actually
schedule a trip for departure based on the earliest and latest
possible ship dates of the trip
Profile Value Description
Ship full trips early or ship Utilized trips ship on the the earliest possible ship date or in time to
latest (Target) prevent inventory levels from dropping below target
Ship full trips early or ship Utilized trips ship on the the earliest possible ship date or in time to
latest (SS) prevent inventory levels from dropping below safety stock
Latest possible ship date Trips ship just in time to prevent inventory levels from dropping below
(Target) target
Trips ship just in time to prevent inventory levels from dropping below
Latest possible ship date (SS)
safety stock (default)

 Example for a trip on a TL ship method that is full, has a one day in-
transit time and three items loaded
– If MSC: Distribution Planning Ship Date equals:
 Ship full trips early or ship latest (SS) then the trip is scheduled to ship
early on day 3 and arrive on day 4 since it is full but cannot arrive
earlier than day 4 because of Item B
 Latest possible ship date (SS) then the trip is scheduled to ship on day
4 and arrive on day 5 just in time for Item C
Earliest Latest
Material
Possible Dock Possible Dock
Available Date
Date Date
Item A Day 1 Day 2 Day 6
Item B Day 1 Day 4 Day 6
Item C Day 2 Day 3 Day 5

 MSC: Cancel Outstanding Sales Order Quantities – specify if
distribution planning should cancel unfilled sales orders after the
sales order latest acceptable date (Fill or Kill). The canceled
quantity is displayed in the Expired Demand field of the Supply
Demand window.
Yes Cancel unfilled sales orders on the latest acceptable date
No Unfilled sales orders are carried forward until supply can be found (default)

 Two new profile options are provided to simplify the definition of target
and maximum inventory levels. If no other method of calculation is
defined for an an item-organization maximum or target inventory level,
then the levels are based on the specified percent of the safety stock
level.
– MSO: Maximum Inventory Level % of Safety Stock
– MSO: Target Inventory Level % of Safety Stock

 MSC: Inventory Rebalancing Surplus Inventory Basis Specify whether

inventory rebalancing considers target or safety stock inventory levels.
‘Surplus’ inventory is defined as the quantity of projected available balance

Target greater than target inventory level. Target inventory level demands are
considered by inventory rebalancing
Safety Stock ‘Surplus’ inventory is defined as the quantity of projected available balance
greater than safety stock inventory level. Target inventory level demands are
ignored by inventory rebalancing (default)

 MSC: DPP Discrete Job Cutoff Window (Days) – controls the number
of days from plan start date that discrete jobs are considered.
– All discrete jobs are treated as firm by distribution planning

Null All discrete jobs are considered by the plan (default)
Zero No discrete jobs are considered by the distribution plan
All discrete jobs with completion dates from plan launch date + {integer value}
Integer value are considered by the distribution plan. New planned orders for discrete jobs
can be created both inside and outside of the job cutoff window.

Organizations and Shipping Lanes
 Define organizations and inter-organization relationships

– Associate receiving orgs as customers of shipping orgs
 Define carriers and associate with ship method

– To release inter-organization shipments, ship methods must be associated
with defined carriers
 Define inter-organization shipping lanes
– Define shipping networks and assign ship methods
 Define shipping, receiving, and carrier calendars

Define Items as Distribution Planned
On the MPS/MRP Item

Attributes tab, scroll down to
check the Distribution
Planned item attribute

Define Safety Stock Inventory Levels
 Choose the method of establishing the safety stock levels for each
item-organization
– Optionally, use Oracle® Inventory Optimization to calculate postponement
driven time-phased safety stock buffers at all levels (which can then be
used in the distribution planning process)
– Or, use General Planning item attributes to calculate time-phased safety
stock levels
 Safety stock method = MRP planned %
 Define bucket days and percent
– Or, set fixed safety stock levels in the Inventory  Planning  Safety
Stocks form
– Optionally, set the planning profile options to control safety stock
smoothing

Define Safety Stock Inventory Levels
 Distribution planning supports safety stock smoothing
– Even if safety stock smoothing is turned off, distribution planning uses the
safety stock level of the last day of an allocation bucket as the safety level
for the entire bucket. If the allocation buckets are weekly or larger, this
gives the output a smoothed appearance
 Smoothing is performed in two stages
– Smoothing within Allocation buckets
 Controlled with MSC: Safety Stock Change Interval and MSC: Smoothing Method profile
options
– Smoothing across Allocation Buckets
 Controlled with MSC: Maximum Percentage Variation in Safety Stock Values and MSC:
Minimum Percentage Variation in Safety Stock Values profile options

Target and Maximum Inventory Levels
 Choose the method of establishing the target and maximum levels for
each item-organization
– By definition: Safety stock ≤ Target ≤ Maximum
– Set fixed target and safety stock levels in the Distribution Planning  Set
Up  Inventory Levels form
– Or, use MPS/MRP item attributes to calculate time-phased target and
maximum stock levels
 Define days of supply and window attributes
– Or, set the % of safety stock profile options for target and maximum
– Optionally: set the safety stock smoothing profile options which apply to
target and maximum levels also



Define BOMs for Kitting
 Use Oracle Bills of Material to define kitting BOMs

– Kit assembly is constrained by component availability
– Routings and resources are not considered by distribution planning
– Kit lead-time is the fixed lead-time defined in the Lead Times item attribute
tab
 For each kit job, the job duration is the fixed lead-time
 Shifts and working days are considered for kit job start and completion
dates and the duration
– Kit order sizes are controlled by the Fixed Lot Multiplier
– Kit jobs can be released to Oracle WIP
– Collected kit jobs from Oracle WIP are treated as firm

Define Demand Priority Rule
 Demand priority rules are a new distribution plan option

– Define the demand priority rules at Distribution Planning  Setup 
Demand Priorities
– Distribution plans consider demand type priorities first and then within the
demand type, the user can set priorities based on Demand Class
– Six demand types: sales orders, over-consumption sales orders, forecasts,
safety stock, target and excess
– Priorities for safety stock, target and excess always default to the lowest
three priorities in that order

Define Demand Priority Rule

Define Trip Limits
 Define trip limits for TL (truckload) ship methods for each shipping lane
– Use Distribution Planning  Setup  Transit times
– For each ship method used between two organizations, set trip limits for
weight, volume, or both
– The shipping network must be defined in the source instance before the
user can access the trip limits on the planning server

Define Trip Limits
Set weight and volume trip

limits for truck load ship
methods

Define Sourcing Rules
 Define sourcing rules and bills of distribution
– Define in the same manner as for MRP/MPS/MPP
 Define inter-organization sourcing relationships and select ship methods
 Multiple ship methods can be specified for the same supply source with differing
percentages but the percentages are not necessarily respected for the same supply source
with different ship methods.
 New distribution planning feature: Inventory Rebalancing

– Check Inventory Rebalance to establish an inventory rebalance
relationship between two organizations
– Define the inventory rebalance rank to set the sequence or organizations
where distribution planning will try to find excess material to transfer to the
destination organization before using the standard sources

New for distribution planning:

check Inventory Rebalance
and set the inventory
rebalance rank

 RDC1 and RDC2 use DC1 as the primary source
RDC1
 RDC1 and RDC2 do inventory rebalancing
DC1
 All safety stock levels are 100 for the sample item
RDC2
 All lead-times are 0 for this simple example
Day 1 2 3 4
DC1 On hand 500 500 400 300 As RDC2 has surplus inventory
RDC1 On Hand 0 100 0 100
of 100 units, an inventory
rebalance transfer is scheduled
RDC1 transfer from DC1 100
by distribution planning.
RDC1 transfer from RDC 2 100 In the following periods there are
RDC2 On Hand 200 100 100 0 no more surpluses so the
RDC2 transfer from DC1 100 transfers are scheduled from the
RDC2 transfer from RDC1
usual source of DC1.

Define Supply Allocation Rules
 Define supply allocation rules and assign at the organization-item level

– Distribution Planning  Sourcing  Supply Allocation Rules

– Select the Fair Share Allocation method
– Current Demand: fair share supplies based on the ratio of demands in the
allocation bucket
– Safety Stock Ratio: fair share based on the safety stock ratio’s of the
destination organization
– Fixed Percent: set fixed percentages of supplies to allocate to each
destination organization
– Order Size Method: allocate by order size
– None: no fair share, just allocate supplies to demands on a first come first
served basis.

Set Fair Share Allocation

method to use for the org-item
this rule is assigned to in the
assignment sets form

RDC1 – DC1 allocates supply using the current demand ratio
fair share allocation method
DC1 RDC2  The supply shown is on hand in DC1
– DC1 has sales orders, forecasts and transfer demand
Customers from the two RDC’s
Demand Allocation if Allocation if Allocation if
DC 1 Demands Priority
Quantity Supply = 100 Supply = 300 Supply = 700
Sales Order 1 100 50 100 100
RDC1 Request 1 100 50 100 100
Forecast 2 100 0 25 100
RDC1 Request 2 200 0 50 200
RDC2 Request 2 100 0 25 100
RDC1 Request 3 100 0 0 10
RDC2 Request 3 1000 0 0 90


– Optionally set fixed lot multipliers to use as the order modifier for the
assigned organization-items
– Only used for inter-organization transfers
– If not defined on the supply allocation rule, then distribution planning uses
the destination organization fixed lot multiplier for transfer order sizing
 All other item attribute order modifiers are ignored except for the round
order quantities.

Optional: set Demand Priority Override to

establish priorities by organization. All
item-organization demands are the same
priority for an organization

 The allocation method to safety stock (and target) demands:

– Balances the enterprise’s total supply in multiple organizations across the
competing safety stock demands from the organizations
– Protects source organization supplies allocated to safety stock so all
supplies are not pushed outwards to meet destination organization safety
stock levels

Assignment Sets
 Sourcing Rule Assignment Sets

– Distribution Planning  Sourcing  Assign Sourcing Rules
– Assign sourcing rules and bills of distribution as usual for any planning
method
– New for distribution planning: assign supply allocation rules
 Assign at instance-organization, category-instance-organization, or
item-instance-organization level
 Supply allocation rules are always assigned to the shipping
organization and the supply allocation rule defines how the shipping
organization allocates when supply is short

Assignment Sets
New for distribution planning: Supply Allocation

Rules
•Assign supply allocation rules at the organization,
org-category or org-item level

Organization and Customer Lists
 Organization and customer lists are used for viewing the horizontal
plan and the new distribution planning allocation plan

Distribution Plan Preferences
 Define distribution plan preferences

– Distribution Planner Workbench: Tools Menu  Preferences
– Set Horizontal Plan preferences
– Set Allocation Plan preferences
– Set Plan Summary preferences

Release 12 Transfer of Information
Oracle Advanced Planning
Advanced Supply Chain Planning

Functional Overview

Part 3: Defining Distribution Plans
Distribution Planning Enhancements - Setup

Defining Distribution Plans
 Distribution Planning  Distribution Plans  Names

 Standard MRP/MPS/MPP options behave similarly in distribution
planning
 New distribution plan options
– Select demand priority rule set
– Select assignment set with supply allocation rules
– Set fair share allocation defaults
– Set trip utilization limits
– Set new time bucketing options
– Set new time load consolidation and infinite time fence horizon options


New for
distribution plans

Select Demand Priority Rule
 Select the Demand Priority Rule for each plan

– Compare plans with different demand priority rules
– Demand priorities set by demand class and demand type
 Priorities are assigned to sales orders and forecasts
– End demand priorities are passed down the supply chain network on the
dependent demands
– User Defined Priorities option
 Use the demand priorities from the ODS (collected from source)

Select Assignment Set
 Select assignment set for the distribution plan

– Assignment sets include the new Supply Allocation rule assignment tab
 Note: MRP/MPS/MPP plans can use the same assignment sets but
these plans will ignore the supply allocation rules
 Supply Allocation tab is only available on assignment sets on the
planning server
– Compare allocations between distribution plans with different assignment
sets

Use Organization Priority Overrides Checkbox
 Optional: check use organization priority overrides
– If organization priority override is checked then a demand priority rule set
cannot be used
 Priorities are based on the organization override priorities set in the
supply allocation rule for each organization-item
– Allocation from a source organization to the destination organizations are
based on the assigned destination organization priority
 If no priorities are assigned for an organization-item, then allocations are done on an equal
priority basis
 Priorities assigned to end demands (forecasts and sales orders), safety stock and target are
the same priority as the assigned organization priority
– Assign organization override priorities to the source organization to control
the relative priority level of the source organization independent demands
versus the dependent demands from other organizations

Fair Share Allocation Method - Default
 For each plan, set default fair share allocation method from any source
organization to the destination organizations if no supply allocation rule
is specified
– Current demand ratio
– Safety Stock Ratio
– None
 Use the default method to reduce the number of user entered fair
share allocation rules
 Default method is applied to all item-orgs except where a Supply
Allocation Rule has been explicitly defined and assigned to the item-
source organization

Fair Share Allocation Method - Supplier
 For each plan, set the supplier fair share allocation method used for
all suppliers to organizations allocation
– Current Demand Ratio: Fair share based on the ratio of the demands
from each destination organization for the bucket
– Safety Stock Ratio: Fair share based on the ratio of the destination
organization safety stock levels at the end of the allocation bucket
– None: First-come first-serve basis (FCFS)
 Fair share allocation methods are not assigned directly to individual

suppliers
 Supplier capacity is fair shared to multiple organizations based on the
net capacity available at the end of an allocation bucket

Fair Share Allocation Method - Customer
 For each plan, set customer fair share allocation method
 Customer Fair Share Allocation options:
– None: Supplies allocated on first-come first-serve basis (FCFS)
– Demand Class: Fair share allocation by demand class. Below demand
class, supplies allocated on a FCFS basis
– Customer: Fair share allocation by customer. At customer site level,
supplies allocated on a FCFS basis
– Customer Site: Fair share allocation by customer site
 Highest priority demands are allocated supplies first

– When supply runs short for a particular priority, fair share allocation is done
for the all demands with that priority

Fair Share Allocation Method - Customer
Customer A  Customer allocation example shows sales orders in
supply and demand window view
DC1 Customer B  Fair share allocation by customer
 Supply is 100 units on Day 1, 400 Units on Day 3
Customer C
and 1000 units on Day 10
Demand
Customer Priority Qty by Due Date Ship Date Due Date
Quantity
Customer A 1 100 50 Day 3 Day 1
Customer B 1 100 50 Day 3 Day 1
Customer C 2 100 0 Day 3 Day 1
Customer D 2 100 0 Day 3 Day 1
Customer E 3 1000 0 Day 10 Day 1

Enable Sales Order Split
 Enable sales order split
– Checked: if sales order line quantity cannot be met on the suggested due
date, then split into two lines as:
 1st line: SO quantity reduced to the quantity available on the suggested due date
 2nd line: New suggested ship date when remaining quantity is available
– Unchecked: no sales order splits by the planning engine
 Sales order line splits are not retained between plan runs and cannot be
released to Oracle® Order Management
 Distribution planning issues sales order line allocation split exception
messages
 Ship line complete sales order lines are not split

Enable Sales Order Split
 The upper table shows the sales orders before splitting
Customer A  The lower shows the distribution planning split of the
DC1 sales orders based on supply of 100 units on day 1 and
Customer B 100 units on day 3
 Customer fair share allocation is enabled
Demand
Quantity
Customer A 1 100 Day 1
Customer B 1 100 Day 1
Demand
Quantity

Enforce Supplier Capacity
 Enforce supplier capacity constraints plan option

– Checked: Supplier capacity constraints are respected and Material
Shortage exceptions are issued when supplier capacity constrains planned
orders
– Unchecked: Supplier capacity constraints can be violated and supplier
capacity overload exception messages are reported

Trip Utilization Limits
 Set Minimum Trip Utilization % and Maximum Trip Utilization % plan options
 Applies only to truckload (TL) Ship methods
– Both weight and cube trip limits are considered by distribution planning
 Trips are not loaded in excess of the maximum trip utilization %

 Under-utilized trip exceptions reported for trips below the minimum trip
utilization %
– Under-utilized trips are not scheduled until one of the supplies on the trip is required
to prevent safety stock inventory violations or required for higher priority demands
– If the trip is scheduled because of one supply, additional supplies may be loaded to
improve trip utilization even though not required on the scheduled dock date in the
destination

Time Aggregation Options
 Distribution planning provides controls for several functional time

intervals as:
– Daily and weekly planning buckets
– Load consolidation horizon
– Allocation time buckets
– Inventory rebalancing surplus days
– Infinite time fence days

Trip Consolidation Days
 Trip Consolidation Days:
– Days from the plan start date that trips are created, scheduled and
consolidated
– Days are measured in working days based on the plan calendar as defined
by owning organization or calendar profile
– Must be less than or equal to daily buckets
– Internal transfers are consolidated onto trips if the ship date is inside the
trip consolidation window even though the dock date may be after the trip
consolidation end date
 Trip Consolidation End Date (display only):
– Displays the end date of the trip consolidation horizon
– Time stamp of the trip consolidation end date is 23:59

 Trip identifiers appear in the new distribution planning trips form and the
supply and demand window
– Internal sales orders and internal requisitions on a trip have the same ship
and dock date and ship method
– Transfers are grouped based on the load consolidation limits for a ship
method
– Trips are created within the load consolidation horizon
 Trip identifiers are not released
– Only the internal sales order orders and internal requisitions are released to
the source instance
– Oracle Transportation Management performs the detailed transportation
planning in the source instance and uses the released internal sales orders
as an input

Trips form shows each trip

weight and cube utilization
percents

Allocation Buckets
 Period allocation buckets: check to enable period allocation based on
the plan calendar
– If checked, then Daily Allocation Buckets and Weeks per Aggregate
Allocation Bucket are grayed out.
 Daily Allocation Buckets: number of days during which the allocation
bucket size is one day.
– Daily allocation buckets are counted against working days on the plan
calendar.
 Weeks per Aggregate Allocation Bucket: number of weeks contained in
each aggregate allocation bucket
– Aggregate bucket start date is display only

Allocation Buckets
 Supply allocation proceeds bucket by bucket
– Demands in the first bucket (daily, weekly or period) are sorted by priority
 Firm demands are given the highest priority
– Within the bucket, for each demand of a priority:
 Demands are allocated supplies on or before the demand date
 Or if not available by the demand date, then by the bucket end date
 Or if a shortage occurs for a demand priority within an allocation
bucket, the supplies are fair shared based on the supply allocation rules
and plan options
– Unsatisfied demands are carried forward to the next allocation bucket

Inventory Rebalancing Surplus Days
 Inventory rebalancing surplus days: number of days that surplus

inventory must be available before it can be used as supply for a
demand from an inventory rebalancing relationship.
– Only firm supplies are considered for inventory rebalancing
 Inventory rebalancing relationships are defined on the sourcing rules
 Inventory rebalancing rules define a use up first relationship
– Inventory is transferred from inventory rebalance sources first, thereby
using up the surplus at another org before sourcing through the usual
channels

Infinite Time Fence Horizon Days
 Infinite Time Fence Horizon Days:
– The number of days from the plan start that the supply schedule is a hard
constraint in the distribution plan
 Infinite Time Fence Start Date (display only):
– First date of the Infinite Time Fence
 Supply schedules are not a constraint on and after the infinite time
fence
– Inter-organization transfers are created as needed
– Projected stockout exceptions are issued for supply shortages outside of
the infinite time fence

Time Aggregation Options
 The diagram illustrates the relationship among the trip consolidation time fence, the trip consolidation
days, the infinite time fence, and the daily/aggregate allocation buckets. For the example, the planning
buckets are daily.

Organizations Tab
 Global Forecasting is supported by distribution planning
– Enter global demand schedules from Demand Planning
 Distribution planning organization controls
– Check or uncheck the Include Sales Orders checkbox
– WIP, Reservations, and Purchases are always included
– Safety Stocks are always planned
 Add demand and supply schedules
– Demand planning scenarios
– Forecasts from source
– Distribution plans can be used as demand schedules
– Distribution plans and MRP/MPS/MPP plans can be supply schedules

Organizations Tab

Decision Rules Tab
 MSO: Enable Decision Rules set to “Yes” enables users to select
Decision Rules options for distribution planning
 Decision rules are supported by distribution planning for:

– End item substitution
– Substitute components
– Alternate BOMs
– Alternate sources

Test Case - Inventory Rebalancing
Safety stock for all orgs = 100

On hand in M1 = 200
On hand in M2 = 0
On hand in D1 = 200
Rebalance between M2 and D1
M2
M1
D1

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 Doc ID 740966.1

Safety Stock setup as user defined qty = 100 in Org M1, M2 and D1
DRP Sourcing rule setup for the item for M1 Main Distribution Center which supplies M2 and D1
DRP Sourcing rule setup for the item for M2 – Note the rebalance rule with D1
DRP Sourcing rule setup for the item in D1 – Note the rebalance with M1 and hence the circular
sourcing. You must have the rebalance rule setup in both orgs.
Added the 3 sourcing rules to the assignment set – Scroll right
Balance of assignment set form setup

DRP Plan Options – note the assignment set assigned to the plan. This very basic setup only to show
rebalance scenario
Aggregation tab
Organizations tab
Not using decision rules for this scenario

Plan run was 06-JAN-2014 – Notice that while M1 has 200 on hand, with the rebalance rule in place we
get the extra on hand from D1 to ship to M1 to get it back to it’s safety stock level = 100

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Oracle Advisor Webcast Program

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The following is intended to outline our general product

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General Overview of DRP/DPP Planning including significant/new features:

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 To leverage Release 12 Distribution Planning Enhancements,

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MPS, MRP, MPP Distribution Planning (DPP)

Considers kitting BOM’s and fixed lead

FIFO demand prioritization Fair share allocation rules

Considers SS, target and maximum

Creates detailed production schedule Creates detailed distribution schedule

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Example: available supply is 120

Priority 1 Demands Supply Priority 1 Demands Supply

120 at DC1 120 to DC1 120 at DC1 65 to DC1

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 Release updated inter-organization transfer dates and related trip

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Advanced Supply Chain Planning

Distribution Planning Enhancements

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 MSC: Inventory Rebalancing Surplus Inventory Basis Specify whether

‘Surplus’ inventory is defined as the quantity of projected available balance

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Profile Value Description

Zero No discrete jobs are considered by the distribution plan

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 Define organizations and inter-organization relationships

 Define carriers and associate with ship method

 Define shipping, receiving, and carrier calendars

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On the MPS/MRP Item

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