PeopleSoft Enterprise Inventory Policy Planning 9.1 PeopleBook

Creating and Maintaining Policy Sets

This chapter provides an overview of inventory policy sets, lists prerequisites and common elements, and discusses how to:

Create and maintain policy sets.
Delete policy sets.

Understanding Inventory Policy Sets

A policy set defines a group of items for which the system calculates inventory policies. This set includes basic control data for generating a policy for each item in the set. When you create a policy set, you design the format that the system uses to generate the actual inventory policy. You add items to the set when you generate, populate, or maintain the policy item master record.

For example, to create a policy set from a forecast, you define how to extract data from the published forecast, including what forecast items to include from the published forecast. Based on the shell that you create and the selection criteria, the system can create policy master items during the generation of the policy.

You can create and maintain multiple policy sets as well as associate an item with more than one policy set. Placing the same item in multiple policies enables you to manage the item differently for different locations.

Only one policy set is required to use PeopleSoft Inventory Policy Planning, but using multiple sets has advantages. For example, if you want to assign certain items to a selected planner, you can create a policy set with just those items for the planner, adding security and flexibility to item planning. Also through policy generation, you can use multiple policy sets to create what-if scenarios for groups of items, rather than for a single item.

Important! If you use only one set, remember that it's the live production set, and you shouldn't experiment with live data.

You can create inventory policies from:

Oracle Demantra Demand Management forecasts.

Use forecasts to design a policy set that extracts data based on items in Demantra.
PeopleSoft Inventory items.

Define the basic parameters for the policy set which then uses items from PeopleSoft Inventory that are defined for Inventory Policy Planning. Designate a policy set as in use in PeopleSoft Inventory.

Prerequisites

Before creating an inventory policy set, you should:

Analyze the inventories that you maintain.

Classify each inventory by division, owner and administrator, and required demand planning periods.
Collect item and location data, classifications, and other attributes.
If you are using Oracle Demantra Demand Management , ensure that each policy item has an available forecast in that application.
Decide which policy sets to use.

Establish a policy set for each operational combination of inventory. For example, you might have separate sets for inventory, division, owner, and forecast period.
Establish criteria to identify which Demantra Demand Management forecast items the system automatically loads into the policy set.
Determine if you must store any additional policy set data.

Common Element Used in This Chapter

Apply

Click to update the policy set with the new information that you entered. This button is available on several policy set pages.

Creating and Maintaining Policy Sets

To create policy sets, use the Policy Sets Maintenance component.

This section provides an overview for creating policy sets and discusses how to:

Define basic data for policy sets.
Select items to include in policy sets.

Understanding Policy Set Creation

When you create policy sets, if the policy set is set to Use Inventory, then default values for policy items are loaded from PeopleSoft Inventory. If the policy set is set to not use Inventory, then if policy items are created from the Import routine default information is loaded from there otherwise control groups are used to load the policy items. For policy sets that use PeopleSoft Inventory, policy items are created with default information from the Inventory Item Master record. For either type of policy set, you define basic data such as time periods, calendars, and control groups.

To indicate for the system to use PeopleSoft Inventory default values, select the Uses Inventory check box on the Policy Sets page.

Before you create a policy set, use the Calendar feature to define a valid calendar and calendar periods.

You can change information that is associated with policy sets at any time; however, the system doesn't incorporate changes to the set until the next time it generates the inventory policy. To use an existing policy set as a model for a new set, use the Copy Policy Sets feature.

Deletion of a policy set removes data associated with that set, including policy items, control groups, messages, and specifications.

Pages Used to Create and Maintain Policy Sets

Page Name	Definition Name	Navigation	Usage
Define Policy Sets	DP_POLICYSETS	Inventory Policy Planning, Define Policy Elements, Policy Sets, Define Policy Sets	Define basic data for policy sets, including policy control, calendar, map ID and user-data code information.
Select Items	DP_POLSETFILTER	Click the Select Items link on the Define Policy Set page.	Select items to include in policy sets.
Copy Policy Sets	DP_COPYPOLSETS	Inventory Policy Planning, Define Policy Elements, Policy Sets, Copy Policy Sets	Create a new policy set by copying information from an existing set.

Defining Basic Data for Policy Sets

Access the Define Policy Sets page (Inventory Policy Planning, Define Policy Elements, Policy Sets, Define Policy Sets).

Role Security Built	Indicates if role security has been built for the policy set.
Uses Inventory	Select to create policy master items with item data from PeopleSoft Inventory as opposed to using Oracle Demantra Demand Management items. After you populate or refresh the master items, you can generate an inventory policy and then publish the new policy for use in Inventory. When you select the Create Missing IP Master (create missing inventory policy master) check box during policy generation, it determines where default information is loaded from for the new items. After you select Uses Inventory and save the policy set, you cannot change the selection. During its processing, the system determines which items are available from PeopleSoft Inventory by checking whether or not the business unit item is set as an Inventory Policy Planning item on the Planning tab in the Define Business Unit Item component. If PeopleSoft Inventory has the business unit item set as an Inventory Policy Planning item, then PeopleSoft Inventory Policy Planning includes the item in populate and refresh tasks. The system also uses the setting to determine whether to create missing items during policy generation, and when exploding bills of material (BOMs) for dependent demand. Review specifying planning information, modifying item attributes for the business unit, and how to define an item in the PeopleSoft Managing Items PeopleBook.
Use Yield by Operation	Select if you want the inventory policy to include yield by operation calculations. If you select this check box, the system uses the cumulative yield from the primary routing in PeopleSoft Manufacturing to determine a yield factor for each assembly item. The system uses this yield factor to adjust period demand for these assembly items prior to calculating component demand. Note. You must select the Uses Inventory check box before you can select the Use Yield by Operation check box. You must integrate PeopleSoft Inventory Policy Planning with PeopleSoft Supply Chain Management 8.8 (or a later release) to use yield by operation.
Calendar ID	Select the calendar that contains daily attributes that the system applies to policy data. This field is required.
Period Code	Select a code on which the system computes time-phased policy parameters, such as safety stock. This field is required.
User Data Code	Enter the code that represents the set of user-defined fields that you want to include in the policy set. This field is required, but if you use PeopleSoft Inventory data, the system ignores this value. User-defined fields are fields that you define by mapping them to existing planning fields. The purpose of these fields is to provide a means of naming fields so that the data that is contained in the field is more meaningful to you. After defining the fields, you group them by user data code.
Maximum Periods	Enter a value that represents the maximum number of periods to cover when developing the inventory policy. The periods are taken from the Policy Start Period and Start Year fields and moved forward into the future until the maximum number of periods is reached. This field is required.
Rounding Decimals	Enter the number of decimal places to which you want to round calculated quantities in PeopleSoft Inventory Policy Planning. The maximum value is 12, and the default value is 0.
Policy Start Period and Start Year	Enter the period number and year of the starting point for the inventory policy. You can enter up to three numbers for the period. The year format is four characters.
Map ID, Item Code, and Location	Select the map ID to define the item code and location. The Item Code and Location fields appear based on either the item or product planning field mappings.
Policy Control	If you are updating the policy, select the control group that contains default reorder and stocking policies that you want to use with this policy set. A control group is a set of rules that controls inventory item replenishment policies, and the available controls are those that already exist for this policy set. The control group is used as a default for all new items created for this policy set. If you are adding a new policy, use the Control Group field to enter a new default control group for the policy. Use the From Policy Set field to select a policy set. All existing control groups that are associated with the policy set appear in the From Policy Control field. Select the control group to use as a template for creating the new policy control. The system automatically adds the control group by copying it and storing it with the policy set when you save the new policy set.

Selecting Items to Include in Policy Sets

Access the Select Items page (click the Select Items link on the Define Policy Set page).

Click Return to save the entries that you make on this page and then return to the Define Policy Set page.

Deleting Policy Sets

You can delete an entire policy set or delete certain components of the set without deleting the policy set structure itself.

This section discusses how to delete sets.

Page Used to Delete Policy Sets

Page Name	Definition Name	Navigation	Usage
Delete Policy Sets	DP_DELETE_POLSETS	Inventory Policy Planning, Process Deletions, Policy Sets	Delete sets from the PeopleSoft Inventory Policy Planning system.

Deleting Sets

Access the Delete Policy Sets page (Inventory Policy Planning, Process Deletions, Policy Sets).

Click Delete Entire Policy to remove the complete policy set from the system. The system removes information created and maintained by the set. When you select to delete the entire policy set, you cannot select individual policy components to delete.

Click any or all check boxes in the Delete Policy Set Components group box. This removes information for that specific type of policy set component.

This table lists the delete options available on this page and also displays the records the system clears for items related to the policy set you selected for the deletion:

Delete Option	Records Affected
Delete Entire Policy Set	DP_POLICYSETS DP_POLSETITEMS DP_POLSETFILTER DP_IPINQFORMLIN DP_IPINQFORMATS DPIP_WRKQUE_MSG DP_IPERRORLOGS DP_ROLEIPITEM DP_ROLESECPLNES DP_ROLESECPSET DP_UNSELECTFLDS DP_IPPUBSPC_HDR DP_IPPUBSPC_LNS DP_IPPUBSPC_FLT DP_POLFLD_SELS DP_PFLDSEL_LNG DP_EIPIMP_LNS DP_EIPIMP_POL DP_INT_IPMST DP_USERPOLICIES
Policy Items	DP_IPMAST_UOMS DP_IPMAST_LINES DP_IPMASTER
Control Groups	DPIP_CTLGRPWRKQ DP_POLICYCTRLS
Specifications	DP_IPWKQUE_SPEC DP_IWQSPEC_FLTR DP_IPPUBSPC_HDR DP_IPPUBSPC_LNS DP_IPPUBSPC_FLT
Cost Summary Groups	DP_CSUMGRP_FLTR DP_CSUMGRP_HDR