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Oracle Demantra Implementation Guide
Release 7.3
Part Number E05136-11
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Creating a Standard Error Process

This chapter describes the creation of a standard error process.

This chapter covers the following topics:

Creating a Standard Error Process

Overview

A standard error process is a database procedure (named COMPUTE_STD_ERR) that calculates the standard error between two specified series, at specified aggregation levels. You run this procedure from a Workflow using the Stored Procedure Step that runs COMPUTE_STD_ERR. You can use this standard error calculation, for example, to define and maintain the safety stock levels that are needed to meet demand according to a predefined service level and replenishment cycle.

Aggregation Levels Used in Standard Error Calculation

When you calculate standard error, you specify two aggregation levels. The standard error is calculated for each combination of those two levels. You can use the following combinations of levels:

The target series (which you define to display the result of the calculation) must be defined on the corresponding dimension in the mdp_matrix table.

To create a standard error process:

  1. Start the Business Logic Engine user interface

  2. Click Safety Stock > Safety Stock Process.

    The wizard displays a screen where you specify the aggregation levels where the standard error is to be calculated.

    the picture is described in the document text

    This screen displays two lists of aggregation levels. The left list contains all the item levels and all the matrix levels. The right list contains all the location levels and all the matrix levels.

  3. Specify the levels as follows:

  4. Click Next.

    The wizard displays a screen where you specify the range of dates for which the standard error is to be calculated.

    the picture is described in the document text

  5. Specify dates as follows:

  6. Click Next.

    The wizard displays a screen where you specify the series to use in the calculation.

    the picture is described in the document text

  7. Specify the forecast series as follows:

  8. Click Next.

    The wizard displays a screen where you can review your choices.

  9. Do one of the following:

Generating Safety Stock

Once calculated, the Standard Error can be used to drive a simple safety stock calculation in Demantra. A series can combine the standard error with a desired service level and the replenishment time associated with the time and generate a suggested safety stock. An example for such a series in a weekly system would have the expression:

where consensus plan, service level, error standard, replenishment cycle are all series.

If the requirement calls for a more complicated safety stock calculation, Oracle Inventory Optimization can be used.