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Oracle Inventory Optimization Users Guide
Release 12.1
Part Number E13372-07
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Oracle Inventory Optimization Users Guide


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Overview of Oracle Inventory Optimization
Stochastic Optimization Technology
Business Process
Key Inventory Decisions
BIS Key Performance Indicators

Defining an Inventory Plan

Running an Inventory Plan
Copying an Inventory Plan

Inventory Plan Options

Plan Options Overview
Plan Options
Planned Items: ABC Classification
Selecting Planned Items
The Main Tabbed Region
Plan Start Date in Future
Plan End Date
The Organizations Tabbed Region
Using an Existing Plan as a Demand Schedule For a New Plan
Setting Demand Variability
Cumulative Demand Distribution
How Probability Data is Used by Oracle Inventory Optimization
Weighted Average Calculation
How to Assign Forecasts and Forecast Sets to Scenario Sets
Specifying Sources of Demand
The Constraints Tabbed Region
Service Level and Fulfillment Lead Time
Lead Time Variability
Inventory Budget

Key Setups

Setting Plan Level Default Service Level
Setting Plan Level Default Demand Fulfillment Lead Time
Service Level Set
Defining Service Level Sets
Item Simulation Set
Defining Item Attribute Simulation Sets
Defining User-specified Safety Stock
Defining Budgets
Enforcing a Plan Option Budget Name or Value
Setting Default Lead Time Variability
Setting Up Manufacturing Lead Time Variability for a Plan
Setting Up Manufacturing Lead Time Variability for an Item
Setting Up In-Transit Lead Time Variability
Setting Up Supplier Lead Time Variability
Setting Penalty Costs
Setting Item Purchase Price by Supplier
Setting Performance Indicators
Setting Intermittent Demand

Viewing Output

Overview of Viewing Output
Creating Queries
Editing and Maintaining Queries
Executing Queries
Setting Queries Preferences
Performance Indicators
Time-phased Supply and Demand
Visibility to Forecast Variability
Viewing the Demand Fulfillment Lead Time
Safety Stock and Target Safety Stock
Safety Stock Analysis - Viewing the Plan
Resource Requirements
Material/Resource Availability
Reviewing Exception Messages

Analysis Workbench

Overview of Analysis Workbench
Analyzing Inventory Plans
Using the Analysis Workbench
Creating and Editing Preference Sets
Analyzing Service Level Versus Profit
Analyzing Postponement
Analyzing Safety Stocks
Analyzing Inventory Budgets
Analyzing Revenue and Cost Breakdown
Analyzing Service Level Breakdown

Managing Inventory and Safety Stock

Planning Safety Stock for Components and Co-products
Defining and Generating Safety Stock Levels
Safety Stock Inflation
Safety Stock Smoothing
Safety Stock Level Days of Supply
User-Specified Safety Stock

Service Parts Planning

Integration with Oracle Inventory Optimization

Cross-Product Integration

Integration with Demand Planning

Profile Options

Profile Options Introduction
Special Considerations
MSR Profile Options