11i Replenishment Concepts

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 Objectives

After completing this module, you should be able to:

• Describe focus and statistical forecasting
• Describe Oracle Inventory replenishment
• Describe Oracle Inventory replenishment methods
• Understand that mobile devices can be used for
replenishment

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 Agenda

• Overview
• Overview of Oracle Inventory forecasting
• Overview of Oracle Inventory replenishment
planning
• Overview of mobile device replenishment
• Summary

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 Overview

Oracle Inventory forecasting Oracle Inventory planning

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 Overview of Inventory Planning

Time to replenish

• Min-Max planning
• Reorder-point planning
• Kanban replenishment
• Replenishment counting

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 Order Planning

Order time Order size

“When should I order?” “How much should I order?”

Planning methods
“Which planning method should I use?”

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 How Much to Order

Carrying costs

Order costs

Expected
Demand

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 Replenishment Process for Intra-Org
Supply Sources

Create allocations
Replenishment move for inventory to be
order automatically moved
created

Print move
order pick slip

Transact move order

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 Replenishment Process for Supplier
Supply Sources

External purchase
requisition created

Run requisition
import

Auto create Approve Receive material

purchase order purchase order from supplier

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 Replenishment Process for Inter-Org
Supply Sources

Internal purchase Run Requisition Run Order import

requisition created import

Receive material
Pick release internal Ship confirm from other
sales order internal sales order organization

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 Replenishment Process for Product
Supply Sources

Work order created Release work order

Complete work order

when assembly finished

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 Agenda

• Overview
• Overview of Oracle Inventory forecasting
• Overview of Oracle Inventory replenishment
planning
• Overview of mobile device replenishment
• Summary

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Overview of Oracle Inventory Forecasting

Inventory forecasting is the process of

extrapolating the expected demand of an item over
a number of periods in the future.

Supply Demand

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 Forecast Types

Statistics Time period

Demand

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 Agenda

• Overview
• Overview of Oracle Inventory forecasting
• Overview of Oracle Inventory replenishment
planning
• Overview of mobile device replenishment
• Summary

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 Oracle Inventory Replenishment Methods

Reorder-point Planning
•Safety stock
•Replenishment lead time
•Item demand
•Order cost
•Carrying cost
Min-Max Planning
•Minimum inventory level
•Maximum inventory level
Kanban Replenishment
Replenishment by visual cue
Replenishment Counting
•Nontracked subinventories
•Locators in subinventories

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 Replenishment Methods Levels

Planning Method Organization Subinventory

Reorder-point Yes No
Min-Max Yes Yes
Replenishment Counting No Yes
Kanban N/A N/A

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 Safety Stock

Planning of Item

Base Level of Inventory

Fluctuations in Demand

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 Economic Order Quantity

2 x annual demand x avg cost of order preparation

EOQ =
Annual inventory carrying cost percentage x unit cost

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 Overview of Reorder-Point Planning
Reorder Point = Safety Stock+Forecast demand during lead time

Quantity

Reorder-Point

Safety Stock

Time

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 Overview of Min-max Planning

Minimum Maximum
inventory level inventory level

Below minimum! Time to order

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 Overview of Kanban Replenishment

CM1148 Full Bin CM1123

CM1148 CM1148

Ready to Replenish Bin in Use

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Overview of Replenishment Counting

Organization

Subinventories

Replenishment Counting is a method of ordering items for

non-tracked subinventories.

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 Overview of PAR Counting

Organization

Subinventories

Locators

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 Agenda

• Overview
• Overview of Oracle Inventory forecasting
• Overview of Oracle Inventory replenishment
planning
• Overview of mobile device replenishment
• Summary

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Mobile Replenishment Count Overview

Kanban Replenishment PAR

Replenishment Count Count

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 Agenda

• Overview
• Overview of Oracle Inventory forecasting
• Overview of Oracle Inventory replenishment
planning
• Overview of mobile device replenishment
• Summary

Copyright © 2005, Oracle. All rights reserved.

 Summary

You should be able to:

• Describe focus and statistical forecasting
• Describe forecast rules
• Describe Oracle Inventory replenishment
• Describe Oracle Inventory replenishment
methods
• Understand that mobile devices can be used
for replenishment

Copyright © 2005, Oracle. All rights reserved.