Demand and Supply

ASCP Fundamentals

Copyright © 2007, Oracle. All rights reserved.

 Objectives

After completing this module, you should be able to do the

following:
• Describe demand types
• Describe sales orders
• Describe forecast consumption
• Describe supply types
• Review demand and supply

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 Module Overview: Topics

• Demand types
• Sales orders
• Forecast consumption
• Supply types

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 Topic Overview: Demand Types

• Independent
• Dependent
• Safety stock: Inventory Optimization
• Safety stock: Inventory
• Safety stock: Planning

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 Independent

Customer Order

Forecast

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 Dependent

Customer Order

Subassemblies,
Buy Components,
Transfer
Components

Forecast

Independent Demand Dependent Demand

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 Safety Stock: Inventory Optimization

Fabrication Assembly Distribution Customers

plant plant centers

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 Safety Stock: Inventory

PERIODS 1 2 3 4

Gross Requirements 100 300 500

Scheduled Receipts

Net Requirements 140 300 500

Planned Order Due 140 300 500

Projected Available 10 50 50 50 50

Manual
Safety Stock = 50
Mean absolute
deviation

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 Safety Stock: Planning

PERIODS 1 2 3 4

Gross Requirements 100 300 500

Scheduled Receipts

Net Requirements 157 367 450

Planned Order Due 157 367 450

Projected Available 10 67 134 134 84

Safety Stock Bucket Days = 3

Item attributes
Safety Stock Percent = 50%

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 Topic Overview: Sales Orders

• External and internal

• Plan to request/schedule/promise dates
• Sales order entry process
• Processing cycle
• Demand priority

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 External and Internal

External

Customer Distribution center

Internal

Distribution center Final assembly Feeder plant

plant

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 Plan to Request/Schedule/Promise Dates

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 Sales Order Entry Process

• Enter Sales order header information:

– Customer name or number
– Order type
• Order line information:
– Item
– Quantity
– Unit of Measure
• Book the sales order
• Schedule the sales order

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 Processing Cycle

Oracle Order
Enter Management
Schedule
Book

Oracle Shipping
Pick Release Execution
Ship Confirm

Oracle
Invoice Receivables

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 Demand Priority

Priority 1

Priority 2

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 Topic Overview: Forecast Consumption

• Forecasts: Demand Planning

• Forecasts: Transaction Data Store
• Forecast consumption overview
• Consumption days
• Days
• Weeks
• Periods
• Multiple bucket types
• Forecast consumption flow options
• Forecast bucket consumption
• Demand classes

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 Forecasts: Demand Planning

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 Forecasts: Transaction Data

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 Forecast Bucket Types

Bucket No. of Total Orig Curr.

Type Date End Date Buckets Qty. Qty. Qty.

Days Jun 20 1 20 20 20

Days Jun 20 Jun 30 7 140 20 20

Weeks Jun 2 1 100 100 100

Weeks Jun 2 Jun 30 5 500 100 100

Periods Jun 2 1 400 400 400

Periods Jun 2 Sep 29 5 2000 400 400

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 Forecast Consumption Overview

Original forecast

= -
Current
forecast

Customer orders

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 Consumption Days

Backward Forward
consumption consumption
limit day limit day

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
July

Sales Order #143

A Jul 8 120

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 Days

Backward consumption days = 5 from Day 8 (Days 5, 4, 3, 2, 1)

Forward consumption days = 5 from Day 8 (Days 9, 10, 11, 12, 15)

3 2 1 4
Original 20 20 20 20
Current 0 0 0 0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
July
5
Sales Order #143 Overconsumption entry
A Jul 8 120 in forecast set
on July 8
for quantity - 40

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 Weeks

Backward consumption days = 1 from Day 8 (Day 5)

Forward consumption days = 0 from Day 8

2 1

Original 100 50
Current 25 0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
July

Sales Order #143

A Jul 8 125

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 Periods
Backward consumption days = 10 from Day 5 (Days 4, 3, 2, 1, 28, 27,
26, 25, 24, 21)
Forward consumption days = 10 from Day 5 (Days 8, 9, 10, 11, 12,
15, 16, 17, 18, 19)
2 1

Original 75 100
Current 55 0

24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14
July

Sales Order #143

A Jul 8 120

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 Multiple Bucket Types

Original forecast

= -
Current
forecast

Customer orders

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 Forecast Consumption Flow Options

Original forecast

= -
Current
forecast

Customer orders

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 Forecast Bucket Consumption

Bucket Bucket Bucket

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Sales Order #143

A Jul 8 120

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 Demand Classes

DC = MO DC = MO DC = RT DC = RT DC = WS DC = WS

Mail order Mail order Retail Retail Wholesale Wholesale

forecast sales orders forecast sales orders forecast sales orders

Material plan
(MPP, MPS, MRP)

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 Supply Types Overview

• On hand
• Scheduled receipts
• Purchase requisitions
• Purchase orders
• Scheduled receipts for make items

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 On Hand

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 Scheduled Receipts

ITEM A 1 2 3 4 5

Gross Requirements 80 80 200 200 200

Scheduled Receipts 110 110 110 110

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 Purchase Requisitions

Buyer
Manual Entry
and
Production
Plan

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 Purchase Orders

Buyer Supplier Receiving

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 Scheduled Receipts for Make Items

Production
Plan

Shop
Planner Inventory
Floor

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 Practice Overview: Reviewing Demand and
Supply

This practice covers reviewing demand and supply

information.

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 Summary

In this module, you should have learned how to:

• Describe demand types
• Describe sales orders
• Describe forecast consumption
• Describe supply types

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