Getting Started in Oracle Strategic Network Optimization

This chapter covers the following topics:

• Oracle Strategic Network Optimization Overview
• Oracle Strategic Network Optimization Business Processes
• Integration With Oracle Advanced Planning Suite
• Oracle Strategic Network Optimization Implementation

Oracle Strategic Network Optimization Overview

Oracle Strategic Network Optimization enables you to solve a wide range of manufacturing, distribution, and logistics problems. You can determine when and where to open or close facilities and production lines, and whether to manufacture internally or to outsource. You can develop and evaluate "what-if" scenarios, including assessments of your competition; and plan for changes in supply, demand, capacity, and new product introductions. You can optimize plans by performing a variety of detailed analyses, including expected profit, new markets, marketing promotions, materials and finished goods sourcing, and inventory builds.

Oracle Strategic Network Optimization, part of the Oracle Supply Chain product suite, enables you to model and optimize your supply chain network - from obtaining raw materials through delivering end products. With Strategic Network Optimization, you can:

• Determine which materials should be sourced from different suppliers

• Determine which products to make in which plants

• Optimize your manufacturing plans, including machine routings, the flow of materials, and use of critical resources

• Determine the optimal quantities of inventory to keep costs at a minimum while maximizing customer service levels

• Optimize your distribution plans, including plant locations, warehouses, and transportation alternatives

Oracle Strategic Network Optimization Business Processes

The following flow diagram illustrates the Strategic Network Optimization business processes:

Integration With Oracle Advanced Planning Suite

Through the integration of Oracle Strategic Network Optimization with Oracle Advanced Planning Suite (APS), you can create high level supply chain plans that can be implemented using Oracle transaction systems. Using data from Oracle transaction systems and, if available, demand forecasts from Oracle Demand Planning, Oracle Strategic Network Optimization can create time-phased sourcing rules to provide to Advanced Supply Chain Planning (ASCP). In accordance with these sourcing rules, ASCP can create planned orders with a more granular horizon and detailed multi-level pegging of supply and demand.

You can also use Oracle Strategic Network Optimization for supply chain network simulations and capital asset management. Using data from Oracle transaction systems and forecasts from Oracle Demand Planning, you can balance the conflicting objectives and limitations of supply, production, and distribution in your supply chain to determine how to meet demand with the least cost or with the most profit. You can also determine which facilities should be opened or closed, and in what order, throughout the horizon of a model.

For more information about integrating Oracle Strategic Network Optimization with Oracle applications, refer to the Integrating Strategic Network Optimization chapter in the Oracle Advanced Supply Chain Planning Implementation and User's Guide..

Oracle Strategic Network Optimization Implementation

The Oracle Strategic Network Optimization implementation process can be divided into the following steps:

Installing Oracle Strategic Network Optimization

The following table outlines the process of installing Strategic Network Optimization:

Step	Reference
Install Oracle Strategic Network	Optimization Installation Guide

Starting Oracle Strategic Network Optimization

The following table outlines the process of starting Strategic Network Optimization:

Step	Reference
Start Install Oracle Strategic Network	Starting Strategic Network Optimization

Building Supply Chain Network Models

The following table outlines the process of building supply chain models:

Step	Reference
Model supply chain operations.	Building Supply Chain Network Models, Modeling Supply Chain Operations.
Model commodity flows.	Building Supply Chain Network Models, Modeling Commodity Flows.
Create time periods.	Building Supply Chain Network Models, Creating, Renaming, and Deleting Time Periods.
Organize models using sets.	Building Supply Chain Network Models, Organizing Models Using Sets.

Viewing and Entering Supply Chain Data

The following table outlines the process of viewing and entering supply chain data:

Step	Reference
Open data in selected nodes and arcs.	Viewing and Entering Supply Chain Data, Opening Data in Selected Nodes and Arcs.
Enter supply chain data.	Viewing and Entering Supply Chain Data, Entering Supply Chain Data.
Perform a find on data.	Finding and Extracting Supply Chain Data, Performing Finds on Data.
Replace data after performing a find.	Viewing and Entering Supply Chain Data, Replacing Data in Selected or Found Nodes and Arcs.

Mitigating Risk in Supply Chain Models

The following table outlines the process of mitigating risk in supply chain models:

Step	Reference
Define risks in the Risk Registry.	Mitigating Risk in Supply Chain Models, Defining Risks in the Risk Registry.
Solve models with risk adjusted costs.	Mitigating Risk in Supply Chain Models, Solving Models with Risk Adjusted.

Working with the Currency Table

The following table outlines the process of working with the Currency Table:

Step	Reference
Define currency in the Currency Table.	Working with the Currency Table, Defining Currency Rates.
Define currency in nodes and arcs.	Working with the Currency Table, Defining Currency in Nodes and Arcs.

Extracting Supply Chain Data

The following table outlines the process of extracting supply chain data:

Step	Reference
Extract data using report queries.	Finding and Extracting Supply Chain Data, Extracting Data Using Report Queries.
Edit model data using the Data Editor.	Using the Data Editor.
Extract data using commands.	Finding and Extracting Supply Chain Data, Extracting Data Using Commands.
Export Strategic Network Optimization data to Supply Chain Business Modeler.	Finding and Extracting Supply Chain Data, Exporting Strategic Network Optimization Data to Supply Chain Businesses Modeler.

Solving Models

The following table outlines the steps in the process of solving models:

Step	Reference
Solve a model.	Solving Models, Model Solving.
View solve results.	Solving Models, Viewing Solve Results.
Work with solves.	Solving Models, Working with Solves.
Handle infeasible solves.	Solving Models, Handling Infeasible Solves.

Performing Capital Asset Management

The following table outlines the steps in the process of performing Capital Asset Management:

Step	Reference
Use the Capital Asset Management heuristic.	Solutions for Business Problems , Capital Asset Management (CAM) Heuristic.
Perform a Capital Asset Management solve.	Solving Models, Performing a CAM Solve.

Using the Scenario Manager

The following table outlines the process of using the Scenario Manager:

Step	Reference
Use the Scenario Manager to model "What-If" scenarios.	Modeling Scenarios in the Scenario Manager, An Overview of the Scenario Manager.
Create and run scenarios.	Modeling Scenarios in the Scenario Manager, Creating a Scenario, Running Scenarios.
View Scenario Reports	Modeling Scenarios in the Scenario Manager, Viewing Scenario Reports.