The Multiple Organization Model (MRP and Supply Chain Planning Help)


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The Multiple Organization Model

Large manufacturing and distribution enterprises, often made of a complex and interdependent network of separate inventory locations and business entities, require flexible, modular, and easily maintained plans. By consolidating enterprise-wide planning activity into a single process, Oracle Supply Chain Planning automates much of the implementation and control of material policies, reducing the need for labor-intensive monitoring and manual control of the planning process.

In Oracle Master Scheduling/MRP, the planning process satisfies requirements for multiple inventory locations, but within a single network. For example, demand is passed down from Org 1 (SAC) to Org 2 (AUS) and a Org 3 (SFO), and the supply is replenished in the opposite direction.

The disadvantage is that this model requires at least two planning runs, as each organization plans its own specific requirements. It also requires significant human intervention to ensure that information generated by one organization is passed to the other. If, for instance, SAC wanted to replenish its workstations from an additional organization (NYC), SAC would have to maintain a separate set of plans, and manually coordinate the supply coming from both.

Oracle Supply Chain Planning makes it possible to support a much more diverse and flexible enterprise. Demand for an item may be met through one or more networks of replenishment organizations. These organizations may be geographically remote, clustered into interdependent groups, but remain semiautonomous within the enterprise; they may also be members of a supplier's or customer's enterprise.

In the supply chain model, SAC produces final assemblies, which it distributes through SFD and NYD. SAC is replenished by AUS, which supplies one purchased component and one assembled component. This supply chain has expansion plans, represented by the NYC Plant and Supplier 3.

The advantage is that all this planning occurs with a single planning run, with attendant gains in runtime and consistency. Requirements of different organizations are planned transparently and seamlessly. You no longer need to load interorg planned orders separately. The enterprise-wide distribution requirements have been incorporated into the planning process. Sourcing strategies, formerly controlled manually by a planner implementing planned orders, can now be automatically assigned to the correct source - whether that is an internal organization or a supplier. Oracle Supply Chain Planning also allows you to expand your planning capability as your enterprise expands. SAC can easily incorporate NYC and Supplier 3 into the global plan.

The Multiple Organization Model

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