Respect expiration dates of specific on-hand quantities in material reservations

Redwood Platform

With this update, you can preserve on-hand material reservation details from Oracle Inventory Management in Oracle Supply Planning, Oracle Backlog Management, and Oracle Global Order Promising modules. Planning can now respect the reserved lot, subinventory, expiration date, and planning attribute combination where available. Collections are enhanced to bring in expiration dates for on-hand supplies and reservation details for items, such as lot and expiration date, regardless of whether they’re lot controlled or not lot controlled. This capability applies to data from both Fusion source and external source systems.

Planning uses enhanced reservation details during reservation netting for sales order demands, transfer order demands interfaced to Oracle Order Management, and work order component demands. When specific reservation details are available, planning allocates on-hand supply from the matching subinventory, lot, expiration date, and planning attribute combination. When reservations are high or matching supply isn't sufficient, planning uses the common item-organization pool while respecting minimum remaining shelf life or demand due date and available expiration dates using first-expired, first-out order.

Using this capability, you can improve alignment between inventory reservations and planning or promising output. This reduces inconsistencies in reserved on-hand supply and helps you preserve lot, subinventory, expiration date, and planning attribute details in reservation netting.

This feature lets you:

• Collect on-hand material reservations for sales orders, transfer order demands for transfer orders that are interfaced to Order Management, and work order component demands with subinventory and expiration date:
  • For lot controlled items (along with the associated lots)
  • For items that aren’t lot controlled
  • From Oracle Fusion Cloud Inventory Management
  • From external source systems
• Respect on-hand material reservations in Supply Planning, Global Order Promising, and Backlog Management based on collected data

Reservations in Oracle Inventory Management 

Reservations can be created in Oracle Inventory Management, either manually or by orchestrated flows.

• During orchestrated flows, Oracle Inventory Management creates high-level reservations of on-hand supplies without specifying a subinventory or lot. If the Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled, an expiration date is stamped. The expiration date is derived from the remaining shelf life date of the demand. This is done regardless of whether the item is lot controlled or not.
• During manual reservations, you can select a subinventory and lot to perform on-hand material reservations. If the Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled, an expiration date is stamped. The expiration date is derived from the remaining shelf life date of the demand. This is done regardless of whether the item is lot controlled or not.
• Post pick confirmation, reservation details in Oracle Inventory Management are updated with relevant subinventory, lot details for lot-controlled items, and the expiration date of the on-hand supply. 

Supply Planning, Global Order Promising, and Backlog Management now have enhanced reservation netting processes to honor high-level manual and pick confirmed reservation details.

Oracle Inventory Management allows creation of on-hand supplies with expiration date for items that aren’t lot controlled based on configurations performed on the Configure Inventory Attributes page.  

Collection of on-hand material reservations from Oracle Inventory Management

Perform the following steps to collect on-hand material reservations from Oracle Inventory Management:

1. Create on-hand material reservations in Oracle Inventory Management, either manually or by orchestrated flows.
2. Collect reservations data and supply data to Oracle Fusion Supply Chain Planning from Oracle Fusion Cloud SCM.  

The Collection process has been enhanced to collect reservation details with lot and expiration date. It now supports both:

• Collection of on-hand reservations with subinventory and lot without expiration date
• Existing collection of on-hand reservations with subinventories for items without lot control and expiration date

For items that aren’t lot controlled and striped with an expiration date, on-hand supplies are collected by aggregating supply quantity from Oracle Inventory Management by subinventory and expiration date.

The Collections process aggregates on-hand supplies by subinventory and expiration date. During the aggregation process it also respects planning attributes.

Example 1 – Collection of high-level reservations for lot-controlled items when Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled 
The following example illustrates the flow of high-level reservations for lot-controlled items when the opt-in Specify Minimum Shelf-Life Controls for Perishable Items is enabled. In this example, Oracle Inventory Management performs high-level reservations based on Remaining Shelf Life Date of the demand. The data collections process collects the high-level reservation for sales order with expiration date.

On-hand supplies with lot and expiration in Oracle Inventory Management

Sales order details derived by Oracle Inventory Management for reservation

On-hand material high-level reservations in Oracle Inventory Management with details of supply

*In high-level reservations, Oracle Inventory Management stamps the expiration date as the remaining shelf life date of the sales order after identifying that the supply is available with an expiration date on or after the remaining shelf life date.

Collected reservation details of supply for sales order

Example 2 – Collection of pick-confirmed reservations for lot-controlled items when Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled

Continuation from Example 1 – Pick confirmation moves the on-hand supply to staging subinventory.

Pick confirmed on-hand supply in Oracle Inventory Management

Reservations updated in Oracle Inventory Management after pick confirmation

Collected reservation details of supply for sales order after pick confirmation

Example 3 – Collection of on-hand supplies aggregating by expiration dates for items that aren’t lot controlled

On-hand supplies with expiration date

Collected on-hand supplies with expiration date

Example 4 – Pick-confirmed reservation collections for on-hand supplies for items that aren’t lot controlled when Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled

Updated on-hand supplies after pick confirmation

Reservation details updated after pick confirmation

Collected reservation details of the supply

Collection of on-hand material reservations using Load Planning Data from Flat Files

• Load Planning Data from Flat Files has been enhanced to collect an expiration date for items that aren’t lot controlled.
  • The “Supply On Hand” File-Based Data Import (FBDI) template must be prepared by aggregating on-hand supplies by subinventory and expiration date. 
• The “Reservations” FBDI template has been enhanced to collect lot number and expiration date for on-hand reservations:
  • For items without lot control.
  • For lot-controlled items.
  • Collection of on-hand reservation with only subinventory continues to be supported.

This is applicable for both external source and Oracle Fusion Cloud SCM for the organizations where the on-hand entity has been enabled for external data.

Respect on-hand material reservations in Supply Planning

The supply planning process has been enhanced to respect on-hand material reservations, which are available with additional details based on high-level reservations, manual reservations, or pick-confirmed reservations. This is supported for sales order reservations, transfer order demand reservations (for transfer orders that are interfaced to Order Management), and work order component demand reservations.  

When respecting on-hand reservations, these steps are followed in order:

• Step 1 - Search for exact match of on-hand supplies based on reservation details for the demand. In this step the reservations may contain a combination of subinventory, lot, expiration date, and planning attributes or a subset of them. This step may allocate manual reservations or pick-confirmed reservations that have all the relevant details.
• Step 2 - Match subinventory and lot if available, or only subinventory from reservation to on-hand supplies such that on-hand supply expiration date is greater than or equal to the latest of demand due date or remaining shelf life date of the demand. This step may allocate supplies also from manual reservation or post-picked-confirmed supplies for scenarios with and without expiration dates.
• Step 3 - If there aren’t any reservation supply allocations from Step 2, Supply Planning aggregates the on-hand supplies at item organization level, and then first allocates on-hand supplies in First Expired, First Out (FEFO) order by ensuring the on-hand supply expiration is not later than demand due date, and then second allocates from the common pool of on-hand supplies without expiration. This step may allocate supplies from high-level reservations from Oracle Inventory Management.

The supply planning process honors on-hand material reservations for all combinations of scenarios, such as:

• Lot- or non-lot-controlled items with high-level reservation either having expiration date or not when the Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled
• Lot- or non-lot-controlled items with high-level reservations without expiration date when the Specify Minimum Shelf-Life Controls for Perishable Items opt-in isn’t enabled
• Manual reservations scenarios for all combinations for lot- or non-lot-controlled items when the Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled or disabled
• Pick-confirmed reservations for all combinations for lot- or non-lot-controlled items when the Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled or disabled

 Example Plan 1 – High- level reservation – uses Step 3

Note: The Specify Minimum Shelf-Life Controls for Perishable Items opt-in is enabled.

Plan output respecting high-level reservation

Example Plan 2 – Lot-controlled items with expiration using step 3 and 2

Note: The Specify Minimum Shelf-Life Controls for Perishable Items opt-in is disabled.

High-level reservation respected for lot-controlled items

Pick-confirmed reservation respected for lot-controlled items

Example Plan 3  – Viewing enhanced reservation information in Supply Planning  

Collected on hand planned with reserved quantity in supply plan

Reservation pegging output of a sales order and on-hand supplies in supply plan

Respect on-hand material reservations in Global Order Promising

During initial reservation creation in workflows initiated through Oracle Supply Chain Orchestration or Oracle Order Management, a high-level reservation is carried out. Collected reservation data has the following details:

• Item, Organization, Quantity, Expiration Date 

At the time of picking in Inventory Management, the reservation information is updated to one of the following:

• Item, Organization, Subinventory, Lot, Quantity, Expiration Date for lot-controlled items

OR

• Item, Organization, Subinventory, Quantity, Expiration Date for non-lot-controlled items

Collections can process reservation information at either stage for both lot-controlled and non-lot-controlled items. Global Order Promising will respect reservations once collected.

In Global Order Promising, no subinventory or lot information is maintained while aggregating supply for an item-organization and for reporting purposes.

Respect on-hand material reservations in Backlog Management

Backlog Management respects the expiration date while planning sales order lines for both lot-controlled and non-lot-controlled items. The following equations are respected while planning order lines based on the on-hand supply that has an expiration date specified on it: 

• For Arrival type order, the Planned Arrival Date must be less than or equal to the Expiration Date of the on-hand supply used to plan the order. 
• For Ship type order, the Planned Ship Date must be less than or equal to the Expiration Date of the on-hand supply used to plan the order. 

The scheduling diagnostics report has been enhanced to show the quantity of the available-to-promise (ATP) supply used for planning the sales order line aggregated by expiration date. This capability also supports lot expiry at the component level when Backlog Management doesn’t find the finished goods’ ATP supply and has to use capable-to-promise to plan an order line.

For reserved order lines, if the underlying reserved supply doesn’t respect the lot expiry constraint, then the same supply is still used to plan the sales order line. An error text is shown on the order line to inform the user about the issue. Also, such order lines are eligible for release to the Order Management system. To see the details of the reserved supply, select the icon in the Reserved Supply Inventory Identifier field.

Error text shown on violation of lot expiry constraint for reserved order lines

Notice that in this example, the reserved on-hand lot supply expires on January 10, 2030, which is before the planned date of January 12, 2030 for this order line.

Reserved Supply Inventory Identifier drawer

Example 5 : Standalone lot expiry 
This example illustrates a standard item order that’s planned by respecting the lot expiry constraint. 
The following key points apply to the data shown in this example: 

• System Date (Plan run date): 1/7/2030. 
• Request Type: Arrival. 
• Pick-Pack Lead Times aren’t set. 
• The date January 7, 2030, falls on a Monday. 
• On-hand lot supply of 100 units is available on plan start date that expires on January 14, 2030. 
• Minimum remaining shelf life isn’t set; the order is planned to respect lot expiry constraint. 

The highlighted order line is planned on January 12, 2030. 

Arrival type order planned by respecting lot expiry

Let’s navigate to the scheduling diagnostic for this order line to understand the diagnostics details for this order line. Notice the tooltip on the demand node shows a Requested Quantity of 40 planned on January 12, 2030.

Tooltip on demand node

Let’s review the ATP node. The tooltip on the ATP node shows Requested Quantity of 40 units is planned on January 12, 2030 with ATP supply that has an expiration date after the planned date or January 14, 2030.

Tooltip on ATP node

The Collections   process aggregates on hand supplies by subinventory and expiration date. During the aggregation process it also respects planning attributes.

Steps to enable and configure

You don't need to do anything to enable this feature.

Tips and considerations

• You must run collections for both on-hand and reservation entities after the pick confirmation updates reservations in Oracle Inventory Management.
• Supply Planning always performs a First Expired, First Out (FEFO) logic to allocate on-hand material reservation supplies. This is performed mostly for the high-level reservations from Inventory Management, which might  not have any of the following:
  •  Subinventory
  •  Subinventory and planning attributes
  •  Subinventory and lot 
  • Subinventory, lot, and planning attributes  
• Picking can be performed either by FEFO or Last Expired, First Out (LEFO). However, post-pick confirmation updated on-hand reservations are respected by Supply Planning, Global Order Promising, and Backlog Management.

Key resources

• Refer to the 26D update feature titled Respect Minimum Shelf-Life Material Constraints in Backlog Management for additional details on respecting on-hand material reservations in Backlog Management.
• Refer to the 26D update feature titled Respect Minimum Shelf-Life Material Constraints in Order Promising for additional details on respecting on-hand material reservations in Global Order Promising.
• Refer to the 26D update feature titled Specify Minimum Shelf-Life Controls for Perishable Items for additional details related to “Specify Minimum Shelf-Life Controls for Perishable Items” opt-in.
• Refer to the 26D update feature titled Use Grade and Expiration Date as On-Hand Attributes for additional details on Configure Inventory Attributes in Oracle Fusion Cloud Inventory Management.

Access requirements

Users who are assigned a configured job role that contains these privileges can access this feature:

Privilege status	Privilege name and code
Existing	Monitor Supply Planning Work Area (MSC_MONITOR_SUPPLY_PLANNING_WORK_AREA_PRIV)
Existing	Monitor Demand and Supply Planning Work Area (MSC_MONITOR_DEMAND_AND_SUPPLY_PLANNING_WORK_AREA_PRIV)
Existing	Monitor Backlog Management Work Area (MSC_MONITOR_BACKLOG_MANAGEMENT_WORK_AREA_PRIV)
Existing	Monitor Order Promising Work Area (MSC_MONITOR_ORDER_PROMISING_WORK_AREA_PRIV)

These privileges were available prior to this update.