Oracle Inventory Optimization Users Guide

Contents

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Preface

Overview

Overview of Oracle Inventory Optimization

Stochastic Optimization Technology

Business Process

Key Inventory Decisions

Input

Output

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

Queries

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

Glossary

Index