8Manage Supply Plans

This chapter contains the following:

Manage Supply Plans

You can create plans and then duplicate them to save time and perform planning activities incrementally. For example, you have defined the line of business associated with an existing plan, such as organizations and items. You can create a copy from that existing plan rather than define a new plan.

Use this generic procedure to create a plan.

  1. In a Supply Chain Planning work area, click the Tasks panel tab.

  2. In the Tasks panel drawer, click the Manage Plans link.

  3. In the Search Results region, from the Actions menu, select Create.

  4. On the Create Plan page, complete the general information for the plan:

    1. Enter a name.

    2. (Optional) Provide a description for the plan.

    3. Select the plan type.

    4. Select a supply planning mode.

      Note: The Supply Planning Mode attribute is only available for a supply plan, demand and supply plan, or a sales and operations plan type.
      • Supply plan and demand and supply plan types: Options are Constrained and Unconstrained. Constrained is only available if you have opted in for Constraint-Based Supply Planning. Otherwise, the supply planning mode defaults to Unconstrained.

      • Sales and operations plan type: The supply planning mode defaults to Aggregate.

    5. (Optional) Select the Enable for OTBI reporting check box to make measures from a plan available in Oracle Transactional Business Intelligence (OTBI) for reporting.

    6. Select the owner.

    7. Define the access level:

      1. Select Public to make the plan accessible for all users.

      2. Select Private to restrict the plan accessible to you and to a list of users that you want to provide access.

  5. Based on the type of plan that you selected, complete the required information in one or more tabs (Scope, Demand, Safety Stock, and Supply).

  6. Click Save and Close.

Copy a Plan

You can create plans and then duplicate them to save time and perform planning activities incrementally. For example, you have defined the line of business associated with an existing plan, such as organizations and items. You can create a copy from that existing plan rather than define a new plan.

Use the Duplicate procedure to:

  • Create a copy of an existing plan that includes the plan data.

  • Create only a copy of plan options.

Use these steps to copy a plan.

  1. Navigate to the Duplicate Plan dialog box:

    1. In the Navigator, click a Supply Chain Planning work area link.

    2. Click the Tasks panel tab.

    3. In the Tasks panel drawer, click the Manage Plans link.

    4. Enter the search parameters and click the Search button.

    5. In the Search Results region, select the plan that you want to copy, click Actions, and then select Duplicate.

  2. In the Duplicate Plan dialog box, complete the following information for the plan:

    1. Select a copy type:

      • Copy plan options only: The planning process copies plan options to the duplicate plan, but not the plan data.

        Typically, when you duplicate the plan with the Copy plan options only option, the next step is to edit the plan options before running the plan.

      • Copy plan with reference to base plan: When you duplicate the plan with reference to the base plan, the next step is to open the copied plan as you're likely to make edits before running the plan. On the Manage Plans page, the Copied From column displays the name of the plan that you copied from.

        Caution: If you delete the base plan or rerun the base plan with the Refresh with current data option, plans copied from the base plan become invalid.
      • Copy all plan data with no reference to base plan: The planning process makes a full, standalone copy of the plan.

        On the Manage Plans page, the Copied From column is blank. This option isn't available for demand plan types.

    2. Enter a name and a description.

    3. Define the access level:

      • Select Public to make the plan accessible for all users.

      • Select Private to restrict the plan accessible to you and to a list of users that you want to provide access.

    4. (Optional) Select the Load plan after copy check box. This check box isn't available for demand plan or sales and operations plan types.

    5. Select the owner.

  3. Click Save and Close

View a Plan

If you already have an existing plan, you can open the plan from the Plans drawer or by using the Manage Plans task. You must always run a plan before you can view it.

To open an existing plan from the Plans drawer to view it, do the following:

  1. In the Navigator, click a Supply Chain Planning work area link.

  2. Click the Plans drawer.

  3. Expand Plans, and select the plan of your choice.

  4. Click the Actions button and select Open.

    Tip: If you have many plans, you have an option to search a plan by using the Manage Plans task. In this case, provide appropriate search criteria and click Search. In the search results area, select your plan and click the Action button and select Open. Oracle recommends this method to view sales and operations plans.

Enable Plans for OTBI Reporting

Oracle Transactional Business Intelligence (OTBI) is a real-time, self-service reporting solution that helps you create user-defined and interactive reports. You can enable OTBI reporting for plans created in your Supply Chain Planning work area to:

  • Run reports in real-time to analyze supply, demand, and sales and operations planning plans

  • Generate user-configurable and easy-to-use reports by using business intelligence tools and charts

  • Analyze key metrics, such as exception metrics, inventory balances, pegged quantity, and orders to be released

  • Compare two or more plans that are enabled for OTBI reporting

To improve your supply chain performance, you can monitor and identify problem areas by using strategic insights into live and operational data. Compare different scenarios in real-time by using key measures to decide the best course of action. You can respond to changes by modeling complex strategies and plans to analyze and compare them. You can also define native OTBI capabilities like alerts based on exception conditions, user-defined measures, and conditional formatting to monitor or track problem areas.

To create OTBI reports, navigate to the Oracle Fusion Reports and Analytics work area. You can build reports by using the base measures available in your Supply Chain Planning work area. You can also create user-defined measures based on the base measures by using the standard business intelligence tools.

To open OTBI reports in a Supply Chain Planning work area, save the OTBI reports into the Report Components subfolder within the Transactional Analysis Samples folder. The Report Components folder is located in the shared Supply Chain Planning folder in the Reports and Analytics work area.

To enable OTBI reporting for plans, you must do the following:

  • Select the Enable for OTBI reporting check box on the Plan Options page of your supply, demand, or sales and operations plan.

    Note: You must run the plan after you enable it for OTBI reporting.
  • Set up reporting hierarchies by configuring the Product and Time hierarchies in the dimension catalog named Reporting Catalog. To configure the Product and Time hierarchies, use the Configure Planning Analytics task in your Supply Chain Planning work area. Depending on the reports that you want to generate, move the Product and Time hierarchies from the Available Hierarchies pane to the Selected Hierarchies pane. If you select multiple Product and Time hierarchies, ensure that you select a default hierarchy for the Product and Time hierarchies. The default hierarchies are used by default in the predefined reports.

You can build reports by using the base measures available in your Supply Chain Planning work area. You can also create user-defined measures based on the base measures by using the standard business intelligence tools.

Accessing the OTBI Reports

Perform these steps to access the OTBI reports:

  1. In a Supply Chain Planning work area, open a plan that is enabled for OTBI reporting.

  2. Click the Open button and then select a pane.

  3. In the Open Table, Graph, or Tile Set dialog box, do one of the following:

    • Search for your report.

    • Filter the list by selecting Type and then Report.

  4. Select a report and then click OK.

    The OTBI report opens in the context of the current, open plan.

When you search for reports, the list of reports in the search results includes predefined reports and user-defined reports created by you. You must save the user-defined reports into the Reports Components subfolder within the Transactional Analysis Samples folder to make them available in the Supply Chain Planning work areas. The following predefined reports are available only in the Oracle Fusion Supply Planning and Oracle Fusion Planning Central work areas:

  • Build Plan by End Item

  • Exception Summary by Item Order

  • Details by Item

  • Pegging Details by End Item

  • Plan Recommendations Summary Graph

Available Measures

The following measures are available in the Oracle Fusion Reports and Analytics work area:

  • Configure to Order Forecast Metrics: The following configure to order forecast metrics are available for demand plans, and demand and supply plans:

    • Final Option Demand Forecast

    • Final Planning Percent

    • Option Demand Forecast

      Configure to order forecast metrics support dimensions, such as Plan, Time, Product, Organization, Customer, Top Model, and Demand Class.

  • Demand Management Metrics: The following demand management metrics are available for demand plans, and demand and supply plans:

    • Bookings Forecast

    • Bookings History

    • Bookings History Value

    • Final Bookings Forecast

    • Final Shipments Forecast

    • Shipments Forecast

    • Shipments Forecast Value

    • Shipments History

    • Shipments History Value

      Demand management metrics support dimensions, such as Time, Product, Organization, Customer, and Demand Class.

  • Exception Metrics: The following exception metrics are available for supply plans, and demand and supply plans:

    • Exception Count

    • Exception Quantity

    • Exception Days

    • Exception Ratio

    • Exception Value

      Exception metrics support dimensions, such as Plan, Time, Product, Organization, Customer, Supplier, Manufacturing Resource, and Exception Type.

  • Order Metrics: The following order metrics are available for supply plans, and demand and supply plans:

    • Order Quantity

    • Implemented Supply Quantity

    • Order Value

      Order metrics support dimensions, such as Plan, Time, Product, Organization, Order Details, and Order Type.

  • Pegging Metrics: The following pegging metric is available for supply plans, and demand and supply plans:

    • Pegged Quantity

      Pegging metric supports dimensions, such as Plan, Time, Product, Organization, Customer, Supplier, End Demand, and Order Type.

  • Sales and Operations Planning Metrics: The following sales and operations planning metrics are available for sales and operations plans:

    • Consensus Forecast

    • Consensus Forecast Value

    • Final Sales Forecast

    • Final Sales Forecast Value

    • Sales Forecast

    • Sales Forecast Value

      Sales and operations planning metrics support dimensions, such as Plan, Time, Product, Organization, Customer, and Demand Class.

Scope options determine the scope of the plan. Define or modify scope plan options on the Create Plan page, Scope tab or the Edit Plan Options page, Scope tab. You can configure plan organizations, items, time horizon, and planning level for demand forecasting. You can also define the filters for a plan, such as the hierarchy, level, and level members.

The Scope tab includes the following sections:

  • Plan Organizations

  • Forecasting Items (available only for demand plans or demand and supply plans)

  • Supply Planned Items (available only for supply plans or demand and supply plans)

  • Plan Parameters

Plan Organizations

Specify a hierarchy, level, and level members by which to filter the plan. Also, select the source system code to use for filtering organizations. Fields in the Plan Organizations section are required. If you select a level that's above the organization level, then organizations that belong to that parent level are included in the plan.

Forecasting Items

Specify a hierarchy, level, and level members by which to filter specific items for demand planning. Your selections are used in conjunction with your selections in the Plan Organizations section. Items that belong to a parent level are included. Fields in this section aren't required. However, if you don't specify a hierarchy, level, and level members, then you can't filter supply planned items. In this situation, your plan includes all planned items in the selected organizations, which can have performance implications.

Note: The Forecasting Items section isn't available for supply-only plans.

Supply Planned Items

For Supply Planned Item Type, select Manufacturing Plan (MRP) or Production Plan (MPS).

For Supply Planned Items, select the option to control the items to include in the supply plan. Options are:

  • All planned items: This option can have performance implications.

  • Demand plan items and all sales orders

  • Demand plan and WIP components

  • Demand plan items only

  • Demand plan items, WIP components, and all sales orders

Note: The Supply Planned Items section isn't available for demand-only plans.

Plan Parameters

The Plan Parameters section is available for plans of the plan types Demand Plan, Supply Plan, and Demand and Supply Plan.

The following table describes the plan parameters.

Parameter Definition Plan Types

Plan Horizon Days

Number of days in the plan. Set horizon days to forecast and plan for future needs. Minimize horizon days to avoid long-running plans. Default is 180 days.

Demand Plan

Demand and Supply Plan

Forecasting Calendar

Select the forecasting calendar, which must belong to the dimension catalog associated with the plan.

Demand and Supply Plan

Planning Calendar

Select the planning calendar, which must belong to the dimension catalog associated with the plan.

Demand Plan

Planning Time Level

Set the planning time level on the Scope tab and set the Forecasting time level on the Demand tab. The time levels you can choose depend on the selected planning calendar.

Demand Plan

Supply Planning Calendar

Select a supply planning calendar, which can be a 4/4/5 calendar or a Gregorian calendar.

Supply Plan

Demand and Supply Plan

Supply Planning Buckets

Specify your supply planning buckets. The list of values for the bucket types is determined by the supply planning calendar that you specify.

You can base your planning horizon on days, weeks, periods, or months. Or, you can specify a combination of daily time buckets and then specify less granular time buckets such as weeks, periods, or months. If you use two bucket types, the first bucket type must be Days.

Supply Plan

Demand and Supply Plan

Number of Buckets

Specify the number of supply planning buckets.

Note: For a constrained supply plan, the total number of planning time buckets can't exceed 120.

Supply Plan

Demand and Supply Plan

Do not create partial buckets

Select to create additional daily buckets in the plan to avoid partial buckets.

The planning process adds additional daily buckets to avoid the creation of partial buckets. This ensures that a week, month, or period always starts on the first defined day of that particular week, month, or period.

If you don't select this option, the plan doesn't add any additional daily buckets. Instead, the planning process creates a partial bucket and counts that partial bucket as the first week, period, or month, as specified in the plan options.

Supply Plan

Demand and Supply Plan

Measure Catalog

Group multiple sets of measures for use in a plan. By enabling only those measures that are needed for any specific plan, you can perform a focused analysis with improved performance. A planning administrator can create and modify measure catalogs.

Demand Plan

Demand and Supply Plan

Supply Plan

Price Lists

Price list used in revenue calculations. The default price list for use in value calculations is Item List Price, defined in Items table for Organization and Item.

Demand Plan

Demand and Supply Plan

Supply Plan

Exception Set

Lists exceptions to compute as part of a plan and also filters on Organizations and Categories for computing exceptions.

Demand Plan

Demand and Supply Plan

Supply Plan

Simulation Set

Lists simulation sets to use in your plan. A simulation set is a set of adjustments to plan inputs. Apply a simulation set to a plan to model different business scenarios.

Demand Plan

Demand and Supply Plan

Supply Plan

The Supply Planned Items option is inactive until you select level members in the Forecasting Items section. When Supply Planned Items is inactive, the planning process considers that all level members are selected.

Define Safety Stock Parameters

You can select a Safety Stock Planning Method to plan safety stock for your plan. Use the Supply Planning, Planning Central, or Demand and Supply work area to open the Plan Options page, Safety Stock tab, where you can select the safety stock planning method.

The following are the four safety stock planning methods from which to select:

  • Do not plan safety stock

  • User-specified values for all items

  • Statistical safety stock for end items, none for all others

  • Statistical for end items, user-specified for all others

Note: The safety stock override is used and the planning process does not calculate any values for items when the following applies:
  • If the Apply the override quantities for safety stock check box is selected for the plan.

  • If a planned item has its safety stock override item attribute set to Not Null.

Do Not Plan Safety Stock

Select this method if you do not want safety stock calculated or planned for any item in the plan.

If you select this method, the Parameters for Safety Stock Calculations and Parameters for Safety Stock Smoothing sections are not available.

User-Specified Values for All Items

Select this method to plan safety stock for all items based on the safety stock method for each item. In this case, safety stock planning does not consider statistical safety stock parameters. With this option the planning process calculates safety stock in one or more of the following ways:

  • If the Safety Stock Planning Method item attribute is set to Non-MRP Planned, then you can upload safety stock quantities by using CSV files for those items.

  • If the Safety Stock Planning Method item attribute is set to Days of cover, then the planning process calculates safety stock based on the user-specified days of cover for those items.

  • If the Safety Stock Planning Method item attribute is blank, the planning process does not plan safety stock.

If you select this method, the Parameters for Safety Stock Smoothing section is editable. However, the Parameters for Safety Stock Calculation section is not available.

Statistical Safety Stock for End Items, None for All Others

Select this method to plan safety stock only for the end items that have statistical safety stock parameters defined for them. The planning process does not plan safety stock for items that do not have forecasts defined.

If you select this method, the Parameters for Safety Stock Calculation section is editable. Statistical safety stock is calculated with parameters specified at either the item level or at the measure level.

Because statistical safety stock is a single value, smoothing parameters do not apply to it, so the Parameters for Safety Stock Smoothing section is not available.

Statistical for End Items, User-Specified for All Others

Select this method to calculate and plan statistical safety stock for end items and user-specified safety stock for all other items.

If you select this method, the Parameters for Safety Stock Calculations and Parameters for Safety Stock Smoothing sections are available.

You can configure parameters in which to calculate safety stock quantities as part of Run Plan. The safety stock calculation process outputs to plan data for the related safety stock fields for each item-organization attribute. The process calculates statistical safety stock levels based on forecasts and forecast error measures.

Define or modify safety stock plan options on the Plan Options page, Safety Stock tab. The safety stock calculation process also outputs values to the plan simulation set specified on the Plan Options page, Scope tab.

Note: The Parameters for Safety Stock Calculations section is available only when one of the following safety stock planning methods is selected:
  • Statistical safety stock for end items, none for all others

  • Statistical for end items, user-specified for all others

The following table lists safety stock calculation parameters that you can select or configure.

Parameter Description

Use item-specific values

Select to specify whether the supply plan run uses item-specific values in safety stock calculations.

Service Level Percentage

Enter a value between 0 and 100 to set the level of customer service that you want in satisfying the product demand immediately out of inventory.

Forecast Error Type

Determines whether the quality of a forecast is measured by using MAD, MAPE, Intermittent, or Demand schedule specific.

Overwrite

Select a value to use to overwrite the previously generated or entered safety stock levels.

Save to collected data

If selected, then the collected data is updated with the safety stock quantities that are calculated and with safety stock quantity overrides.

You use the Parameters for Safety Stock Smoothing section on the Plan Options page, Safety Stock tab to configure the following options:

  • Apply safety stock change interval to all items

  • Smoothing method to calculate safety stock within change interval

  • Safety stock change interval in days

  • Safety stock bucket start offset days

  • Maximum percentage variation in safety stock values

  • Minimum percentage variation in safety stock values

Note: The Parameters for Safety Stock Smoothing section on the Plan Options page, Safety Stock tab is available only when one of the following safety stock planning methods is selected:
  • User-specified values for all others

  • Statistical for end items, user-specified for all others

Apply Safety Stock Change Interval to All Items

If you enable this option, the planning process applies safety stock change interval to all items. If you disable this option, then the safety stock change interval applies only to items with Days of Cover safety stock method. Safety stock change interval is the time interval used for the smoothing within time interval functionality. If you specify an interval of 20 days, then starting from the application date, the planning process groups the safety stock calculation in 20-days bucket. The planning process then uses the smoothing method to calculate the safety stock within change interval to determine the safety stock level for the bucket.

Smoothing Method to Calculate Safety Stock Within Change Interval

Use this option for smoothing raw safety stock quantities in every interval, starting from the plan horizon. You can select Minimum, Maximum, or Average from the drop-down list. The result is always rounded up to nearest integer.

Safety Stock Change Interval in Days

Safety stock change interval is the number of working days used for smoothing safety stock within the time interval. If you specify an interval of 20 days, then starting from the application date, the planning process groups the safety stock calculation in 20-day buckets. The planning process then uses Smoothing method to calculate the safety stock within change interval to determine the safety stock level for the bucket. Enter a value greater than zero (0).

Safety Stock Bucket Start Offset Days

Use the current day for this option to ignore the impacts of high near-term demand that is possible due to high backlog demand. Enter a value greater than zero (0).

Maximum Percentage Variation in Safety Stock Values

When you use this option, the planning process does not let the safety stock deviate by more than the specified value when changing the time interval. Enter a value greater than zero (0). For example, if you specify 25 percent, the planning process sets 25 percent as the maximum percentage of change in safety stock quantity between buckets.

Minimum Percentage Variation in Safety Stock Values

When you use this option, the planning process keeps the safety stock constant across time intervals if the deviation is within the specified percentage. Enter a value greater than zero (0).

Supply Plan Inputs

You can describe the generic attributes of a supply plan, such as plan start date, end date, and time fence control on the Edit Plan Options page, Supply tab, General tab. Plan Start Date and Plan End Date are read-only fields. The planning process calculates the plan end date from the Plan Horizon Date that you define in the Scope tab. Plan End Date is the sum of Plan Start Date and Plan Horizon Date. You use the Supply Plan Attribute section to configure the following options:

  • Time fence control

  • Assignment set

Demand Time Fence Control

When you enable this option, planning calculations ignore forecast demands before the demand time fence date and considers only sales order demand when calculating gross requirements. Demand time fence is the time duration within which the planning process does not consider forecast demand when calculating actual demand. The demand time fence start date is the current date and the end date is specified by users.

Planning Time Fence Control

Planning time fence is the time duration within which the planning process does not alter the plan. For planned items within the planning fence, the planning process does not reschedule in order due dates or create planned orders for the item to satisfy net demand requirements. This applies to all order types including make, buy, and transfers.

However, the planning process can reschedule out or cancel an order when it determines that such an order creates excess supply. For planned items outside the planning time fence, the planning process can generate suggestions to create, reschedule, or cancel supplies in the plan.

The planning process calculates a planning time fence date for each planned item. The date is calculated based on the values of the item attributes Planning Time Fence Type and Planning Time Fence Days. The date is calculated based on the working days in the organization calendar. For all planned orders, the suggested due date cannot be earlier than the planning time fence date.

Assignment Set

Assignment Set includes the sourcing rules (hierarchy) and bills of distribution (BOD) for material flow within the supply chain. If you have already created assignment sets, you can select the required assignment set from the drop-down list. You can create an assignment set in Manage Assignment Sets from the Tasks panel drawer.

Overwrite Firm Planned Orders

You use this option to determine whether firm planned orders are retained between plan runs. When you select All from the drop-down list, the planning process overwrites all entries, planned and firm planned, from the current material plan. When you select None from the drop-down list, the planning process does not overwrite any firm planned orders. However, it overwrites any suggested planned orders that are not firm.

To navigate to the Supply Plan Attributes section, follow these steps:

  1. On the Edit Plan page, click the Tasks panel drawer.

  2. In the Tasks panel drawer, click Manage Plans.

  3. In the Search area, search for your plan.

  4. Select the plan from the displayed search result. Click Actions and then click Edit Plan Options.

  5. On the Edit Plan Options page, click the Supply tab.

    The General tab displays, which include the Supply Plan Attributes section.

Forecast processing is the process by which supply planning extracts and adjusts historical forecast data from demand planning to meet the actual demand created by a sales order.

You can specify forecast processing on the Plan Options page, Supply tab, General subtab. You can define the following aspects of forecast processing:

  • Forecast Spreading

  • Forecast Consumption

Forecast Spreading

Forecast processing adjusts the forecast received from demand planning to make it suitable for supply planning. The planning process breaks down the forecast received from demand planning to the day level. This is known as forecast spreading.

For example, if the monthly demand forecast is 100 and you enable forecast spreading, and if there are 20 working days in the month, the planning process spreads the forecast quantity of 5 to each daily bucket.

Tip: You can select the Enable the Rounding item attribute in the product data model or a simulation set. This ensures that the spread forecast is in integers and helps to plan for items which are not divisible.

You can only spread demand forecast evenly across all working days. Working days are determined by the calendar that you select from the Forecast Spreading Calendar drop-down list on the Plan Options page, Supply tab, General subtab, in the Allocation and Consumption section.

Select one of the following forecast spreading options:

  • Spread forecast evenly: The planning process spreads forecast to daily buckets if the demand is planned at a weekly or monthly level.

  • Do not spread forecast: The planning process retains the forecast at the weekly or monthly level and places the forecast at the beginning of the week or month. In the first week or first month of the plan, the planning process places the forecast at the first day of the week or the first day of the month.

You should also set the Past Due Forecast Days value on the Organizations tab of the Maintain Supply Network Model page. The planning process then aggregates all the forecasts within the past due dates of the plan and places the result at the plan start.

Forecast Consumption

Forecast consumption is the process that replaces forecast demand with sales order demand. Each time you place a sales order, you create actual demand. If you forecast actual demand, you want to reduce the forecast demand by the sales order quantity to avoid overstating demand

If you select the Consume by forecast bucket check box and specify values for the options Backward Days and Forward Days in the Forecast Allocation and Consumption section, forecast consumption is affected. These choices create a forecast consumption window of time that consists of the backward and forward consumption days added to the sales order line schedule date.

For example, you specify 5 backward and 5 forward days and the forecast is in daily buckets. The consumption search first moves 5 days backward from the forecast bucket in weekdays, looking for a forecast quantity to consume. If that search is unsuccessful, consumption moves 5 days forward from the forecast bucket in weekdays. You can add an overconsumption entry to the forecast if either of the following scenarios occurs:

  • When a match between the sales order and forecast dates is not found

  • When the consumed forecast quantity is not sufficient to cover the sales order quantity

You can also specify forecast consumption for a plan by defining the following options on the Supply: Advanced Options page in the Forecast Consumption Parameters section:

  • Consume forecast inside demand fence

  • Time frame for consuming forecasts with no demand class

  • Prefer consumption within forecast bucket

You can configure the following items in the Forecast Allocation and Consumption section on the Edit Plan Options page in one of the Supply Chain Planning work areas:

  • Forecast spreading

  • Forecast spreading calendar

  • Consume by forecast bucket

  • Backward days

  • Forward days

Forecast Spreading

Use this option to decide whether to spread the forecast evenly or not to spread the forecast at all.

If you select Spread forecast evenly, the planning process spreads the forecast to daily buckets if the demand is planned at a weekly or monthly level.

If you select Do not spread forecast, the planning process retains the forecast at the weekly or monthly level and places the forecast at the beginning of the week or month. In the first week or first month of the plan, the planning process places the forecast at the first day of the week or the first day of the month.

Forecast Spreading Calendar

Use this option to select the calendar of your choice to implement forecast spreading. Select one of the calendars from the drop-down list.

Consume by Forecast Bucket

When you enable this option, the forecast consumption process does not search for forecasts and sales orders outside the consumption bucket. If you enable this option, then you cannot specify Backward Days and Forward Days.

Backward Days

Use this option to allow a sales order demand to consume the forecast demand even if the forecast demand is a specified number of days earlier than the sales order demand. The value must be greater than zero.

Forward Days

Use this option to allow a sales order demand to consume the forecast demand even if the forecast demand is a specified number of days later than the sales order demand. The value must be greater than zero.

To navigate to the Forecast Allocation and Consumption section, follow these steps:

  1. On the Edit Plan page, click the Tasks panel drawer.

  2. In the Tasks panel drawer, click Manage Plans.

  3. In the Search area, search for your plan.

  4. Select the plan from the displayed search result. Click Actions and then click Edit Plan Options.

  5. On the Edit Plan Options page, click the Supply tab.

    The General tab appears. This tab includes the Forecast Allocation and Consumption section.

Automatic release uses scheduled processes to release planned orders automatically after the plan run completes. The following options are available in the Automatic Release Parameters section on the Edit Plan Options page in one of the Supply Chain Planning work areas:

  • Release planned orders automatically

  • Include rescheduled supplies in automatic release

Release Planned Orders Automatically

When you enable this option, the planning process releases the planned orders automatically within the release time fence after the plan runs successfully.

Note: Release time fence is an item-organization attribute and isn't defined in plan options.

Include Rescheduled Supplies in Automatic Releases

When you enable this option, the planning process automatically releases rescheduled supplies. This option is active only if you have selected Release Planned Orders Automatically.

To navigate to the Automatic Release Parameters section, follow these steps:

  1. On the Edit Plan page, click the Tasks panel drawer.

  2. In the Tasks panel drawer, click Manage Plans.

  3. In the Search area, search for your plan.

  4. Select the plan from the displayed search result. Click Actions and then click Edit Plan Options.

  5. On the Edit Plan Options page, click the Supply tab.

    The General tab appears. The Automatic Release Parameters section is a part of this tab.

Horizons for the Average Daily Demand

You use Average Daily Demand to calculate Projected Available Balance: Days of Cover. Specify a value greater than zero (0). The default value is seven. You can configure the average daily demand in the Supply: Advanced Options dialog box.

Why You Include Drop Ship Demands and Supplies in Supply Chain Planning

When you select the Include drop ship demands and supplies option in the Supply: Advanced Options dialog box, all drop ship demands and supplies for planned source systems are included in the planning process. Supply chain planning supports only one source system per plan. Item-organization attributes for the drop ship validation organization are included by the snapshot. Drop ship validation organization is defined in the Organization tab of manage supply network. If you don't select this option, the planning process removes drop ship demands and supplies from the plan.

Use the Forecast Consumption Parameters section in the Supply: Advanced Options dialog box to configure the following options for supply plans:

  • Consume forecast inside demand time fence

  • Time frame for consuming forecasts with no demand class

  • Prefer consumption within forecast bracket

Navigate to the Supply: Advanced Options dialog box from the Plan Options page, Supply tab in a Supply Planning, Demand and Supply Planning, or Planning Central work area.

Consume Forecast Inside Demand Time Fence

When you enable this option, forecast consumption occurs before enforcing the demand time fence control. The forecast entries within the demand time fence are used for consumption but not as a demand. After consumption, the demand quantity for all the forecast entries within the demand time fence is zero.

When you disable this option, the demand time fence control is implemented before the forecast consumption. Forecast entries in the demand time fence are dropped as demand statements and are not used for consumption.

Time Frame for Consuming Forecasts with No Demand Class

Use this option to instruct the forecast consumption process about the order it should use to consume forecast entries when some of forecasts have a demand class and others do not have a demand class. When you select Within each bucket from the drop-down list, the forecast consumption process starts by consuming forecast entries on the day of the sales order. At first, it consumes entries with matching demand class and then entries with no demand class. Then it consumes forecast entries within the backward and forward consumption days. For each day, it uses the matching demand class first and then the no demand class.

When you select After consuming demand-specific forecast from the drop-down list, the forecast consumption process starts by consuming forecast entries on the day of the sales orders with matching demand class only. Then it consumes forecast entries within the backward and forward consumption days with matching demand class only. If there are any remaining sales order quantity, it repeats the process for forecast entries with no demand class. At first the process runs on the day of the sales order and then within the backward and forward consumption days.

Prefer Consumption within Forecast Bracket

If you enable the option, the panning process consumes the forecast within the forecast bucket. This option is dependent on your selections in the Forecast Allocation and Consumption section in the General tab. This option takes effect when you enable Spread Forecast Evenly for Forecast Spreading and disable Consume by Forecast Bucket in the General tab.

To navigate to the Forecast Consumption Parameters section in the Supply: Advanced Options dialog box, follow these steps from a Supply Planning, Demand and Supply Planning, or Planning Central work area:

  1. On the Edit Plan page, click the Tasks panel drawer.

  2. In the Tasks panel drawer, click Manage Plans.

  3. In the Search area, search for your plan.

  4. Select the plan from the displayed search result. Click Actions and then click Edit Plan Options.

  5. On the Edit Plan Options page, click the Supply tab.

  6. On the General tab, click Select Advanced Options.

    The Supply: Advanced Options dialog box opens, which include the Forecast Consumption Parameters section.

You use the Supplier Capacity Parameters section to configure the following options on the Edit Plan Options page in one of the Supply Chain Planning work areas:

  • Consume supplier capacity with purchase order

  • Supplier capacity accumulation multiplier

Consume Supplier Capacity with Purchase Order

When you select the check box, the planning process consumes supplier capacity with all purchase orders. When you do not select the check box, the planning process consumes supplier capacity with planned orders.

Supplier Capacity Accumulation Multiplier

Use this option to set the date for the planning process to begin the supplier capacity accumulation. You provide a number which acts as a multiplier of the Supplier Item Processing Lead-time. The number must be greater than zero. Supplier capacity is the number of units per day for a specific item that the supplier can produce. To decide the date, the planning process uses the following formula for supplier capacity accumulation:

[Multiplier *(multiplication symbol) Processing lead time] + 1

For example, if the multiplier = 2 and the processing lead time = 7 days, then the supplier capacity accumulation begins on day 15.

To navigate to the Supplier Capacity Parameters section, follow these steps:

  1. On the Edit Plan page, click the Tasks panel drawer.

  2. In the Tasks panel drawer, click Manage Plans.

  3. In the Search area, search for your plan.

  4. Select the plan from the displayed search result. Click Actions and then click Edit Plan Options.

  5. On the Edit Plan Options page, click the Supply tab.

  6. On the General tab, click Select Advanced Options.

    The Supply: Advanced Options dialog box opens, which include the Supplier Capacity Parameters section.

Use the Release Recommendation Parameters section in the Supply: Advanced Options dialog box to configure the following supply plan options:

  • Compression days tolerance for automatic release

  • Requisition load group by

  • Transfer load group by

  • Release only by user

Access the Release Recommendation Parameters section from a Planning Central, Supply Planning, or Demand and Supply Planning work area.

Compression Days Tolerance for Automatic Release

Use this option to indicate the number of compression days allowed for the automatic release of planned orders. The number of compression days applies only to automatic release of planned orders and recommendations. Compression days means the number of days reduced between the start date and due date as suggested by the planning process.

Requisition Load Group By

Use this option to indicate the requisition load group when loading requisitions to purchasing. For each option, except All, the planning process creates one line for each planned order within each requisition.

  • All: The planning process creates one purchase requisition for all recommended orders.

  • Item: The planning process creates one purchase requisition for each item.

  • Buyer: The planning process creates one purchase requisition for each buyer.

  • Planner: The planning process creates one purchase requisition for each planner.

  • Supplier: The planning process creates one purchase requisition for each supplier.

  • Category: The planning process creates one purchase requisition for each item category.

  • Location: The planning process creates one purchase requisition for each location.

Transfer Load Group By

Use this option to indicate the transfer load group when loading transfers to logistics. The value of Transfer Load Group By determines how the actual transfer order is created.

  • All: The planning process creates all transfers in one transfer order.

  • Source and destination and ship date: The planning process creates one transfer order for each Ship From and Ship To organization, and each ship date.

  • Source and destination, shipping method and ship date: The planning process creates one transfer for each Ship From and Ship To organization pair, and shipping method and ship date.

Release Only by User

Use this option to specify whether to restrict implementation of planned orders and recommendations to the current user. If you enable this option, the planning process implements only those planned orders and recommendations that the current user has marked. If you disable this option, the planning process implements planned orders and recommendations that are marked by any user.

Note: This option applies only to the manual release of planned orders.

In a Planning Central, Supply Planning, or Demand and Supply Planning work area, navigate to the Release Recommendation Parameters section by following these steps:

  1. On the Edit Plan page, click the Tasks panel drawer.

  2. In the Tasks panel drawer, click Manage Plans.

  3. In the Search area, search for your plan.

  4. Select the plan from the displayed search result. Click Actions and then click Edit Plan Options.

  5. On the Edit Plan Options page, click the Supply tab.

  6. On the General tab, click Select Advanced Options.

    The Supply: Advanced Options dialog box opens, which includes the Release Recommendation Parameters section.

Use the Time Fence Parameters section to configure the following options:

  • Create time fence

  • Create firm planned order time fence

Create Time Fence

Use this option to instruct the planning process to create a natural time fence for an item at the completion date of the latest firm discrete job, purchase order, or transfer. The natural time fence indicates a new time fence that is set at the latest date of firm supplies. Completion date means the due date of the supply.

Note: This advanced plan option has no effect if you do not enable the Planning Time Fence Control option in the General tab.

Create Firm Planned Order Time Fence

Use this option to instruct the planning process to create a natural time fence for an item at the completion date of the latest firm planned order. Completion date means the suggested due date of the firm planned order.

Note: This advanced plan option has no effect if you do not enable the Planning Time Fence Control option in the General tab.

To navigate to the Time Fence Parameters section, follow these steps:

  1. On the Edit Plan page, click the Tasks panel drawer.

  2. In the Tasks panel drawer, click Manage Plans.

  3. In the Search area, search for your plan.

  4. Select the plan from the displayed search result. Click Actions and then select Edit Plan Options.

  5. On the Edit Plan Options page, click the Supply tab.

  6. On the General tab, click Select Advanced Options.

    The Supply: Advanced Options dialog box opens, which includes the Time Fence Parameters section.

When you enable this option, the planning process implements multithreading during the plan run. Multithreading decreases the overall run time of a plan. To enable this option, click Select Advanced Options in the General tab of a supply plan and select Enable multithreading on the Supply: Advanced Options dialog box.

In your organization, you might not use all of the preconfigured dimensions to analyze your supply plans. To improve system and application performance while working with your supply plans, you can decide which dimensions are applicable to measures. You can disable the Customer, Supplier, Demand Class, Order Type, and Exception Type dimensions to optimize data volumes and improve query performance. The Organization, Item, Resource, and Time dimensions are always used and you can't disable them.

When you disable a specific dimension, the planning engine preaggregates the related measures along that dimension. For example, measures such as Revenue or Sales Order Value are computed by default at the most detailed level of Organization, Item, Day, Customer Site, and Demand Class. However, this type of detailed analysis might not be necessary. You can configure your plan to compute the measure at only the Organization, Item, and Day level and ignore calculating the measure at the Customer Site and Demand Class levels.

Configure the dimensions in the Dimensions for Supply Measures section in the Supply: Advanced Options dialog box, which you open from the Plan Options page, Supply tab. The Supply: Advanced Options dialog box is accessible only for supply plans from a Supply Planning, Demand and Supply Planning, or Planning Central work area.

Note: The dimension catalog that is configured in the Configure Planning Analytics task and specified in the plan options governs the hierarchies that are available in a plan for any selected dimension. If any of the optional dimensions are not selected in the dimension catalog, those dimensions are automatically disabled in the advanced plan options.

Because tables are shared across work areas, the selector in pivot tables displays all dimensions (enabled and disabled), and you can add a disabled dimension to a table or graph. In this case, the dimension does not show individual members, but shows one aggregated row or column of All.

When you enable a supply plan for Oracle Transactional Business Intelligence (OTBI), the reports won't have any members in the disabled dimensions of a supply plan.

Use the Organizations and Schedules subtab on the Plan Options page to configure subinventory netting, demand and supply netting, and the forecast spreading calendar, depending on the organization for a supply plan. You can also specify the demands that you want to consider in the supply plan.

Configure the supply plan options for organizations and demand schedules on the Plan Options page, Supply tab, Organizations and Schedules subtab.

Organizations

The organizations are based on the organization level members that you specify on the Scope tab of the Plan Options page.

Subinventory Netting: Enable or disable subinventories that you want to include in the netting. The subinventories are based on the organization. During data collections, the planning process collects the organization based on your configuration of the organization in the source system. If you enable the subinventory netting for a new subinventory in the source, the plan automatically includes the new subinventories that are collected after the initial plan run.

Demand and Supply Netting: Run plans with only demands or supply types depending on your requirement. You can include or exclude sales orders, reservations, on hand, purchases, transfers, and work orders for each organization in your plan. A new plan enables all the demand and supply netting options by default.

Forecast Spreading Calendar: Select a user-defined forecast spreading calendar for each organization.

  • The supply planning process uses the calendar to spread aggregate forecast demand across daily buckets.

  • If you don't specify any calendar at the organization level, then the supply planning process spreads the aggregate forecast evenly across daily buckets.

  • The planning process uses this calendar only when you select the User-defined calendar value for the Forecast Spreading Calendar attribute in the Forecast Allocation and Consumption section. The Forecast Allocation and Consumption section is available on the Plan Options page, Supply tab, General subtab.

Demand Schedules

Select the demands to include in the supply plan. If the plan type is demand and supply, the demand schedule is automatically included in the supply plan. The supported types of demand schedules are:

  • Demand (demand plan)

  • External (external forecast)

  • Production (production plan used in manufacturing plan)

Demand Measures: Click the Select button to access the Demand Measures dialog box where you can select the following measures:

  • End Item Demand

  • Option Demand

  • Planning Percentage

The Select button for Demand Measures is enabled when the demand schedule type is Demand or Sales and Operations. The Select button isn't available for an external demand schedule type.

Forecast Accuracy Measures: Click the Select button to access the Forecast Accuracy Measures dialog box where you can select the following measures:

  • Forecast Error Type for Nonintermittent Demand

  • Measure for MAD or MAPE

  • Measure for Intermittent Demand

  • Measure for Average Interarrival Time

The Select button for Forecast Accuracy Measures is enabled when both of the following attributes are set on the Plan Options page, Safety Stock tab:

  • Safety Stock Planning Method is set to Statistical safety stock for end items, none for all others.

  • Forecast Error Type is set to Demand schedule specific.

Measure Levels: Select dimension levels at which to load the measure. If the demand schedule type is external or production, then the measure level option isn't available.

Ship-to Consumption Level: Select a forecast consumption level for the local demand plan.

For supply plans or supply and demand plans, you can plan statistical safety stock for end items whose forecasts are distributed across multiple demand schedules. The planning engine calculates safety stock based on forecasts in each demand schedule. The calculation uses either the measure values generated in each of the demand schedules or item-specific values specified for each item and organization combination.

Select your demand schedules in the Demand Schedules section on the Plan Options page, Supply tab, Organizations and Schedules subtab. The planning engine uses the forecasts and other measures from these demand schedules to plan statistical safety stock for the respective item-organization combinations.

The planning engine uses each demand schedule to drive safety stock calculations for the items that belong to that demand schedule. If the same item is present in two or more demand schedules, the planning engine selects only one demand schedule to use for safety stock calculation. Oracle recommends that you ensure that forecasts for an item in an organization are restricted to just one demand schedule.

You can select dimension levels in the Measure Levels dialog box at which to load measures into a plan. After configuring your measure levels for demand schedules, run your demand plan to generate the forecasts. Next, run the supply plan and then review the Supplies and Demands table.

You can configure dimension levels for a Supply Plan or a Demand and Supply Plan type from a Planning Central, Supply Planning, or Demand and Supply work area. To access the Measure Levels dialog box, navigate to the Plan Options page, Supply tab, Organizations and Schedules subtab. In the Demand Schedules section, click the Select button in the Measure Levels column.

Note: If the demand schedule type is External or Production, then the Measure Level option on the Organizations and Schedules subtab is not available.

In the Measure Levels dialog box, you can configure measure levels for the following dimensions:

  • Time: The time hierarchy and level choices are based on the forecasting calendar used for the demand plan. You set the forecasting calendar on the Plan Options page, Scope tab, in the Plan Parameters section.

  • Demand Class: If you leave the Demand Class level and Customer level blank and select Day for the Time level, then the forecast that comes from the demand schedule into supply planning will be aggregated at the item-organization-day level.

  • Customer: If you want an aggregated forecast by day or month, leave the customer level blank.

    If you select Customer Site level, the forecast for each day is broken down into forecasts for each customer site in the demand plan. For example, you have 20 customer sites for your demand plan and select Customer Site level land Day for the Time level. You will see 20 forecasts for each day in the Supplies and Demands table.

  • Organization: The organization hierarchy and level are fixed for the organization dimension. The Enterprise hierarchy only supports the Organization level.

  • Product: The product hierarchy and level are fixed for the product dimension. The Product hierarchy only supports the Item level.

Run a supply plan or an integrated plan to generate forecasts and safety stock levels and to create replenishment. An integrated plan includes both a demand and a supply plan. You can run a supply plan or a demand and supply plan from the Supply Planning, Planning Central, or Demand and Supply Planning work areas.

When you run a supply plan or an integrated plan, you can specify the scope of the plan that you want to run. You can decide whether to refresh the plan input data before running it. Also, you can run the plan immediately or you can run the plan in the background at a set time or on a repetitive schedule, such as daily or weekly.

Note: For a constrained supply plan, you can only run the plan in Batch mode.

After you create a supply plan or a demand and supply plan, you must run the plan to generate the data. In the Run Plan dialog box, Parameters tab, run plan options are sequenced in the order of operations: scope, demand, and supply. You also have an option to recalculate safety stock levels. The forecasting process runs first, safety stock is calculated next, and then the output is used for supply planning calculations. You can configure the following options, depending on the plan type:

  • Data Refresh Options

  • Scope Options

  • Demand Plan Run Options

  • Supply Plan Run Options

Data Refresh Options

The following data refresh options are available:

  • Do not refresh with current data: Select this option to run your plan with no changes to demand, including no advancement of the plan start date.

  • Refresh with selected current data: Select this option to partially refresh your data. You can refresh transaction data and some reference data without performing a full refresh. For example, selectively refreshing Demand history and measures and Forecasts covers the following scenarios:

    • Demand history and measures: You have reloaded external or third-party forecasts and the plan must reflect these recent updates (for example, Sales Forecast, Marketing Forecast, Financial Forecast, and Shipments Forecasts).

    • Forecast: You have changed the input measure level on the Plan Options page, Supply tab, Organizations and Schedules subtab, in the Demand Schedules section. For example, you copy a plan, change the input measure level to another forecast within the same plan, and want to rerun the plan. In this scenario, specify the Refresh with selected current data option for Forecast. Because you changed the plan options but didn't edit the plan, the plan doesn't require a full refresh.

  • Refresh with current data: Select this option to refresh the complete plan with the latest collected data. When you run the plan for the first time, this is the only data refresh option available and it's selected by default. If you select this option for an integrated plan (Demand and Supply Plan type), the Plan demand and Plan supply check boxes in the Scope Options section are selected by default and can't be deselected.

Scope Options

Scope options restrict the focus of the replan. The following scope options are available:

  • Plan demand: Select to forecast demand when running a plan. If you selected Refresh with current data in the Data Refresh Options section, then this option is selected by default for an integrated plan. This option is available for Demand and Supply Plan types in the Planning Central and Demand and Supply Planning work areas.

  • Approve plan: Select to approve the plan during the plan run. This option is available for Demand and Supply Plan types in the Demand and Supply Planning work area.

  • Recalculate safety stock: Select to recalculate safety stock quantities when running a plan. This option is available for Supply Plan or Demand and Supply Plan types in the Planning Central, Supply Planning, and Demand and Supply Planning work areas.

    The Recalculate safety stock check box is available only when one of the following safety stock planning methods is selected on the Plan Options page, Safety Stock tab:

    • Statistical safety stock for end items, none for all others

    • Statistical for end items, user-specified for all others

  • Plan supply: Select to have the planning process calculate only the supply. If you selected the Refresh with current data check box in the Data Refresh Options section, then this option is selected by default for an integrated plan. This option is available for Demand and Supply Plan types in the Planning Central and Demand and Supply Planning work areas.

  • Archive plan: Select to archive data from the plan. This option is available for Supply Plan or Demand and Supply Plan types in the Supply Planning and Demand and Supply Planning work areas.

Demand Plan Run Options

The Demand Plan Run Options section is available for Demand and Supply Plan types, but isn't available for Supply Plan types.

Forecast Profiles: Select the forecasting profiles that you want to include as part of the plan. If you don't select a forecasting profile, then the forecasting process doesn't run.

Include details of forecast methods: Select to specify whether to provide details of the forecast methods that make up the forecast. This option is available for Demand and Supply Plan types in the Demand and Supply Planning work area.

Include details of causal factors: Select to specify whether to provide details of the causal factors that make up the forecast. This option is available for Demand and Supply Plan types in the Demand and Supply Planning work area.

Supply Plan Run Options

The Supply Plan Run Options section appears for unconstrained supply plans but not for constrained supply plans. You can only run constrained supply plans in batch mode. The following supply plan run options are available:

  • Interactive: Select this option to run a plan into memory, without saving the plan to the database. If a typical plan is scheduled to run on weekends, you can use the Interactive option to run the plan during the week. If you select Interactive, the Schedule tab is disabled and the plan is set to run as soon as possible.

    Note: Interactive option isn't available for a constrained supply plan.
  • Batch: Select this option to run the plan per a schedule. When you select this option, the Schedule tab becomes available where you can set up when to run the plan.

    Use Batch to save the plan to a database. To save a plan to a database, you must run the plan at least once. The plan will be available for analysis without loading into memory.

    The following two options are available for Batch:

    • Save without calculated totals: Select to exclude calculated totals for items and resources while saving a plan.

    • Save all: Select to save all plan data, including calculated totals. This option includes calculated totals while saving a plan. For example, save all calculated measures for items in the material plan and for resources used in the resource plan such as Projected Available Balance and Net Resource Availability respectively.

Run a Supply Plan or an Integrated Plan

Use these generic steps to run a supply plan or an integrated demand and supply plan:

  1. Open the Run Plan dialog box:

    1. From a Supply Chain Planning work area, click the Plans panel tab and expand the Plans list.

    2. Select the plan that you want to run, click Actions, and then select Run.

  2. In the Run Plan dialog box, Parameters, tab, expand Details to review the plan options:

    1. In the Data Refresh Options section, review the options and make appropriate selections.

      Note: When you run the plan for the first time, you must select Refresh with selected current data. This option refreshes historical data, imports sales orders, and advances the plan start date to align with the current date.
    2. In the Scope Options section, select the options that you want for the plan run.

    3. For demand and supply plan types: In the Demand Plan Run Options section, select the appropriate demand plan run options, including the forecasting profiles that you want to include as part of the plan run.

    4. For unconstrained supply plans: In the Supply Plan Run Options section, select the options that you want for the plan run.

  3. If you selected Batch in the Supply Plan Run Options section, or for constrained supply plans, click the Schedule tab to set up the frequency parameters:

    1. To run the plan immediately, select As soon as possible.

    2. To run the plan in the background at a set time, select Using a schedule and then select a Frequency, such as Daily or Weekly.

  4. Click OK to run the plan.

Supply Planning Concepts

Daily Buckets in Supply Planning

The planning process always plans in daily buckets because it considers that demands are due at the end of the day. The planning process does not plan demands and supplies at weekly, period, or monthly level. Demands and supplies are balanced at the end of the day. The shortages or excess in demand and supplies are carried over to the next day. However, tables and graphs can aggregate daily planning results into weekly, period, or monthly level.

Demands and supplies do not have time stamps. The planning process considers that the capacity during the day can be used for resource or supplier requirements scheduled for the same day. If a planned work order can be completed in less than a day, it's scheduled on the same day as the demand due date. Also, if the work order is less than a day, the start date and the end date are same.

The planning process supports two calendars for aggregation in the planning output:

  • Fiscal calendars: Supports aggregation by week and period in the tables.

  • Julian calendars: Supports daily bucketing and aggregation by calendar month. The Julian calendar does not support bucketing by week.

Requirements Explosion for Make Items

When you run a supply plan or a supply and demand plan, one of the processes that take place is requirements explosion for make items. The supply planning process reviews the supply chain item structure to ensure that there is enough supply on hand and on order to meet demand. The shortage of one item creates a demand for the items one level below it in the supply chain item structure. This process of analyzing the demand of individual components that make up an item and creating a demand for those components is known as requirements explosion.

The planning process uses the work definition of make order items to determine component requirements. The planning process makes suggestions accordingly to replenish the components that are in low supply to make the supply of the make order item easier.

Settings that Affect Requirements Explosion for Make Items

Supply planning respects component effective dates. The planning process determines a new date for the planned make order after it takes into consideration the following:

  • The components that are part of the work definition

  • The operations that are part of the work definition

  • The component effective dates for the make item on or before the order start date of the planned order

  • The operation effective dates for the make item on or before the order start date of the planned order

Note: Requirements explosion is performed only for make items. If you mark a make item as a buy item, the planning process does not suggest replenishing any of its components.

How Requirements Explosion for Make Items is Calculated

Consider the following scenario:

  • Item A is a make order for which there is a sales order of 100.

  • It takes two of item B and three of item C to make one of item A.

The planning process explodes the demand to a component level and creates a demand of 200 for item B and 300 of item C. The demand quantity on an item is the shortage of its parent item multiplied by the usage of the child component in the parent item.

How Resource Scheduling Is Done

Resource scheduling can be calculated when you know the planned make order duration. The planning process uses lead times, both fixed and variable, to calculate planned make order duration. For existing work orders, the lead time is the duration of the work order. The planning process does not change the duration of the work order. You can also manually set fixed and manual lead times.

Tip: If you manually configure the lead times, then set larger values for a conservative planning result. Set smaller values for an aggressive planning result.

For example, suppose the fixed lead time = 1

Variable lead time = 0.2.

The planned order size = 10 units

Make planned order lead time = fixed + variable multiplied by order size = 1 + 0.2 multiplied by 10 = 1 + 2 = 3 days

Demand due date = Day 5

Make planned order: Suggested start date = Day 2; Suggested due date = Day 5

The calculation assumes that day 5 ends at 23:59 and so one full day of lead time pushes the start date to day 4 at 23:59. So in the example, the 3-day lead time pushes the start date to day 2.

The following calculations are used to calculate planned make order duration, routing resource duration, operation duration, and resource duration"

  • Planned make order duration: The planned make order quantity is determined by total quantity of demands and order modifiers. Total make order lead time (days) = fixed lead time + quantity multiplied with variable lead time.

  • Routing resource duration: Resource requirement (in hours) is calculated for item-based resource usages. Resource requirement = Quantity multiplied by Usage hours. Operation duration (in hours) is calculated by adding each resource requirement adjusted for any simultaneous resources. Total Routing Duration = Sum of the operation duration (hours).

  • The operation duration and resource duration calculations are shown in the following illustrations. Each operation and resource requirement is spread over the total make lead time.

The following figure illustrates the calculation for operation duration.

Operation duration in days equals operation in
hours multiplied with total make lead time in hours, divided by total
routing duration in hours.

The following figure illustrates the calculation for resource duration.

Resource duration in days equals resource requirement
in hours multiplied with total make lead time in hours, divided by
total routing duration in hours.

For a planned make order, the planning process performs the following task:

  • Calculates duration based on fixed and variable lead times.

  • Calculates required resource hours from the work definition.

  • Spreads the required resource hours evenly across the calculated work order duration. If the work order has multiple operations, the duration for each operation is calculated and the resource hours are spread out within the operations for assigned resources.

Rescheduling Existing Work Order

For an existing work order, you can either continue with the existing schedule or change the schedule and assign new dates. If the work order is not rescheduled, then the planning process:

  • Does not change the work order start and end dates

  • Does not change the operation and resource requirement start and end dates

  • Spreads each resource usage evenly over the days of the resource requirement

For example, if the resource requirement start date is Day 5 and end date is Day 6, and resource usage is 14 hours, then the planning process allocates 7 hours on Day 5 and 7 hours on Day 6. If you reschedule a work order, the job duration is preserved and does not change. The lead time for each operation and for each resource requirement remain the same. Only the start and end dates change.

Planning calculations follow these guidelines while rescheduling a work order:

  • Allocate the same number of days for work order start and end dates. For example, if the end date is moved by two days, then move the start date by two days.

  • Allocate the same number of days to each operation and resource requirement date. Using the previous example, move each operation and resource requirement date by two days.

  • Spread each resource usage evenly over the days of the resource requirement. For example, if the resource requirement start date is Day 5 and end date is Day 6, and resource usage is 14 hours, then allocate 7 hours on Day 5 and 7 hours on Day 6.

  • Adjust for days on and days off by increasing or decreasing the job, operation, and resource dates. Depending on whether days off are included or removed from the work order, the relative working days remain the same before and after the move. For example, the work order duration is 5 days, starting on Friday and ending on Tuesday including two nonworking weekend days. If the work order is rescheduled to start on Monday, the new end date becomes Wednesday. If any adjusted dates for the work order are pushed into the past, then place the dates on Day 1 of the plan. If a part of the work order is completed, then only the open quantity of the work order is scheduled. If some components and resources are consumed by the work order, then only the open component requirements and open resource usages are planned in the planning process.

How Resource Efficiency and Resource Utilization Are Calculated

While scheduling resources, the planning process uses resource efficiency and utilization that you specify at the resource level. Resource efficiency is a measure (expressed in percentage) of the actual output to the standard output expected. Resource efficiency determines the time that a resource takes to complete a task.

For example, if you expect a resource having an efficiency of 100% to complete a task in 12 hours, the resource having an efficiency of 50% would take 24 hours to complete the task. Effective usage of a resource is the ratio of resource hours as specified in routing (theoretical usage) to efficiency.

The following figure illustrates the calculation used for actual resource usage.

Actual resource usage equals, open parenthesis,
quantity multiplied by resource hours per resource, closed parenthesis,
divided by, open parenthesis, resource efficiency multiplied by resource
utilization, closed parenthesis.

Resource utilization is a measure (expressed in percentage) of how intensively a resource is used. For example, a resource may take frequent breaks or you may assign maintenance tasks to the resource. This indicates that a percentage of the resource time is not available for the task. The actual usage is the ratio of the resource hours as specified in routing to the product of efficiency and utilization. For example, a routing has a resource requirement for 2 hours. The efficiency and utilization of the resource is expected to be 90% and 75%, respectively. Therefore, the actual resource usage is calculated as 2.96 hours.

Actual Resource usage = (1 each multiplied by 2 hours per resource) divided by (90% multiplied by 75%) = 2 hours divided by 0.675 = 2.96 hours

For a Make Order to manufacture 50 units, using the same routing as described in the previous example, you have:

Actual Resource usage= (50 each multiplied by 2 hours per resource) divided by (90% multiplied by 75%) = 100 hours divided by 0.675 = 148.15 hour

Considering the actual resource efficiency and utilization, the planning process generates a plan. If an additional resource usage is required to satisfy a demand, the planning process recommends inflating the resource usage.

Sourcing Allocation Splits

The planning process creates supplies based on the sourcing splits (rank one only). Supply planning uses split percentages that can be specified on sourcing rules. You can rank the sources of supply that are named in the rules and bills, giving one priority over another when the planning process generates recommendations. You can also assign sourcing percentages to these sources, which lets you to allocate a portion of the total orders to each source. Sourcing allocation considers all supply sources: buy, make, and transfer.

If there are no order modifiers, then when supplies are required on a day, the planned orders for the day are split into as many planned orders as required to meet the rank one sourcing allocation splits. If there are item-attribute or supplier-order modifiers, the supply is created for the highest allocation split percent source (rank one) respecting the order modifiers. Then a supply is created for the next source, again respecting the order modifiers. The supply sources are used in allocation percent order. As each order is created, the next lower allocation percentage source is considered. If all rank one sources are used, then an order is created for the remaining top allocation percent source again and so forth through the top rank sources. This is repeated until enough supply is created.

The calculation attempts to balance supply sources over the plan horizon to meet the rank one allocation percents. If supplies don't respect the split due to existing purchase orders or order modifiers, then the planning process select sources each day to bring the plan horizon supplies into alignment with the sourcing splits. You have to create supply on the source that leads to the lowest deviation of the cumulative sourcing split from the split percentages specified in the sourcing rule. The planning process doesn't consider historical receipts when calculating sourcing splits. Only open purchase orders, transfer orders, and make orders are considered.

The following formula is used to calculate the sourcing split each day:

If Total Supply multiplied by Source A allocation percentage > Supply for Source A, then create a new planned order for Source A (respecting order modifiers) so that supply for Source A > or = Source A allocation percentage multiplied by Total Supply, until Total Supply > or = Total Demand.

Sourcing allocation and effective dates: If a sourcing rule becomes effective on a certain date, then the planning process respects the allocation percentages from the effective date and after. The planning process doesn't consider allocation that has happened before the effective date.

For example, a plan runs on March 1st and the sourcing rule is:

  • Effective January 1st until May 31st: 40 % Acme, 60 % Business World

  • Effective June 1st: 50 % Acme, 50 % Consolidated

Starting June 1st, the allocation process splits 50/50 between Acme and Consolidated. The allocation process ignores the history before the effective date. The allocation process doesn't consider whether Acme has 40% or 60% of the orders before June 1st.

Reservations in Supply Chain Planning

You can collect information about all reservations that are created by the inventory processes and view them in one of the Supply Chain Planning work areas. You can view the amount of supply that is pegged to order fulfillment lines.

Supply Chain Planning does not create reservations; it just displays all the reservations that are created by the inventory processes. You cannot edit the quantity or kind of supply that is reserved to a sales order in the configurable planners' workbench.

The following types of supply can be reserved to a sales order in the inventory:

  • On hand inventory

  • Work orders

  • Purchase orders

  • Transfer orders

Multiple sources and quantities of supply can be reserved to a single sales order fulfillment line.

There are two ways by which sales orders are pegged to supplies:

  • Multiple sales orders can be pegged to a single source of supply: In this case, the pegged quantity does not exceed the total supply quantity. This type of reservation is done when a single source of supply is adequate enough to fulfill many sales orders.

    For example, there are 50 sales orders for item A. Each sales order is for a single unit of A. You have defined one of your supply sources as an inter-organization transfer that supplies 100 units of A. Therefore, 50 units out of the 100 units from the transfer supply can be pegged to the different sales order fulfillment lines.

  • Multiple sources of supply can be pegged to a single sales order: In this case, the pegged quantity does not exceed the total demand quantity. This type of reservation is done when a single supply source is not adequate to fulfill a sales order which demands a large quantity of supply for an item.

    If a sales order is recorded for an item that has a high demand, multiple sources of supply can be pegged in varied quantities to that single sales order. For example, you have defined two supply sources A and B as the following: A is an inter-organization transfer and B is a purchase from an external supplier. If a sales order of 800 units for this item is recorded, a part of the supply from A and a part of the supply from B will be reserved. Those reserved quantities are then pegged to the single order fulfillment line.

Supply planning respects a demand reservation to a lot without regard to the lot expiration dates. A lot that expires on day 6 can be reserved to a demand that is due on day 10. Supply Chain Planning collects this reservation as it is and reflects all reservations on the Supplies and Demands page. You can only view reservations in a Supply Chain Planning work area, but you cannot modify them.

View Pegging for Reservations

You can view all the reservations that are created by the inventory processes, in one of the Supply Chain Planning work areas.

To view the sales order fulfillment lines that are pegged to different supplies and the amount of supply reserved against each sales order, follow these steps:-

  1. In the Navigator, click a Supply Chain Planning work area.

  2. Click the Plans drawer.

  3. Expand Plans, and select the plan of your choice.

  4. Click the Action menu and select Open.

  5. Select the Supply Analysis page layout.

  6. Navigate to the Supplies and Demands window and search for all sales orders. You can search by defining one or more attributes in the search criteria, like Item, Organization, or Order Type.

  7. In the Search Results area, click View and select Columns.

  8. Drill down to the Manage Columns option.

  9. Move the column names Reserved Quantity and Reservation Type from the Hidden Columns to Visible Columns.

  10. Optionally, you can also use the Move selected items to the top of list button to move these two rows to the front. This helps you to view all information related to reservations at once.

Tip: You can also enhance your search by setting an Advanced search criteria such as Reserved Quantity > 0. This would display only those sales orders which have some amount of supply pegged to them.

How You View Model Forecast and Sales Order Together

In the configure-to-order process, the execution system transacts the configured item using a unique item identifier that's different from the model item identifier. To make effective planning decisions, you need to view the model forecast, and the supply and demand orders together. You can view the model forecast and the sales order together in the Material Plan table.

By viewing the model forecast and sales order together, you can analyze and make effective supply and demand decisions in a configure-to-order environment.

Enable the Measure for a Combined View of the Model Forecast and Sales Order

To view the model forecast and the sales order together, you must enable the Configured Item Sales Orders measure. Before you enable the measure, add the measure to the measure catalog. To view the measure, assign a category to the model.

Follow these steps to enable the measure:

  1. From your Supply Chain Planning work area, open a plan, and click Open > Full Pane.

  2. From the Open Table, Graph, or Tile Set page, search and open the Material Plan.

  3. From the Material Plan table, click the Selector Tool View Table Configuration icon from the material plan tool bar.

  4. In the Measures tab, move the Configured Item Sales Orders measure from the Available Measures column to the Selected Measures column.

  5. Click Save and Close.

Considerations for Changing the Organization for a Sales Order

You can change the organization for a drop ship sales order or a regular sales order, depending on the associated supplier or supplier site. The following situations summarize how the drop ship or regular sales order is affected when you change the organization.

Drop ship sales order for an outsourced manufacturing organization

You can change the current organization to any other organization. Consider the following points when you change the organization:

  • If you change the current organization to another organization that has an associated supplier or supplier site, the sales order remains a drop ship sales order. The supplier and supplier site on the sales order will reflect the value associated with the new organization on the sales order.

  • If you change the current organization to a drop ship validation organization, you have to manually provide a supplier or supplier site. List of values for the supplier or supplier site includes only those suppliers or supplier sites that are not associated with any organization.

  • If you change the current organization to an internal organization, the supplier and supplier site are set to blank values. The drop ship sales order becomes a regular sales order.

You cannot make line edits to the supplier or supplier site in the drop ship sales order on the Supplies and Demand page.

Drop ship sales order for a drop ship validation organization

You can change your current organization to any other organization. Consider the following points when you change the organization:

  • If you change the current organization to an organization that has an associated supplier or supplier site, then the supplier and supplier site on the drop ship sales order gets changed to reflect the ones associated with the new organization. The sales order still remains a drop ship sales order.

  • If you change the current organization to an internal organization, the supplier and supplier site are set to blank values. The drop ship sales order becomes a regular sales order.

You can make line edits to the supplier or supplier site in the drop ship sales order on the Supplies and Demands page. List of values for the supplier or supplier site includes only those suppliers or supplier sites that are not associated with any organization.

Regular sales order for an internal organization

You can change your current organization to any other organization. Consider the following points when you change the organization:

  • If you change the current organization to an organization that has an associated supplier or supplier site, the regular sales order is converted into a drop ship sales order. The supplier or supplier site in the newly converted drop ship sales order reflects the supplier or supplier site associated with the new organization.

  • If you change the current organization to the drop ship validation organization, you have to manually provide a supplier or supplier site. List of values for a supplier or supplier site includes only those suppliers or supplier sites that are not associated with any organization.

  • If you change the current organization to another internal organization, the sales order still remains an internal sales order.

Regular sales order for an outsourced manufacturing organization

You cannot make any changes to the organization, or to the supplier or supplier site.

How You Plan and Collaborate with Drop Ship Manufacturers

Using supply planning, you can plan and collaborate with your contract manufacturers in a configure-to-order environment. You can plan and collaborate with your contract manufacturers to drop ship customer orders directly from contract manufacturers to customers. Add each contract manufacturer as an organization in Oracle Fusion Product Information Management so that you can plan and collaborate with the contract manufacturers. You can add the contract manufacturers as item organizations, if you do not plan to enable transactions at these organizations. After you add the contract manufacturers as an organization, you can share the model and option forecast with your contract manufacturers and plan to fulfill the orders.

Using demand management, you can forecast demands for models and options at contract manufacturing locations. The planning percentages for an option can vary according to the top model, where the option is a part of the model. The planning percentages for an option can also vary by the demand class of the forecast.

You can consume forecasts for models and options in supply planning using the drop ship sales orders that the contract manufacturers fulfill. Supply planning also generates planned orders to fulfill the demand for models and options at contract manufacturing organizations. You can publish the planned order as an order forecast to Oracle Fusion Supply Chain Collaboration. You can collaborate with your contract manufacturers to receive supply commits for models and options.

Telescoping Time Buckets

Overview of Telescoping Time Buckets

With telescoping time buckets, you determine the low-level time bucket for the near term of your planning horizon. And if you want, you can also determine a different time bucket for the remainder of the planning horizon. You set up telescoping time buckets on the Plan Options page, Scope tab, in the Plan Parameters section.

Filtering, graphing, conditional formatting, and setting exception message thresholds all play a part in facilitating plan management by exception. And certainly the time dimension levels that you select for your tables and graphs help. For example, if you don't need to see plan output in days, then select weeks, periods, or months for your plan output.

You can also use telescoping time buckets to handle information overload. For example, instead of your plan calculating and planning in 100 daily buckets for a 100-day plan, the horizon can be telescoped as follows: The first 1.5 months in 45 daily buckets, and the remaining 2 months in 8 weekly buckets.

Telescoping a plan's planning time buckets reduces granularity of calculation and the number of data points in your plan. By selecting a larger planning time bucket, you eliminate unnecessary plan precision and detail for the entire plan, or just the portion of the horizon beyond the near term. The plan consolidates output into larger time buckets that you determine, such as weekly instead of daily, monthly instead of weekly or daily, and so on. The end result is improved plan runtime performance and visibility further out into the plan without having to scroll as much.

Keep in mind that telescoping does affect the available levels for you to view and edit measure data in a supply plan. In our 45 daily plus 8 weekly buckets planning horizon, if you look beyond day 45 of the supply plan, daily viewing and editing is no longer possible. However, if you view data in a demand and supply plan, you can drill down to the daily level, even if you use telescoping time buckets. This is because demand planning allocates demand measures down to the day level.

Configure Telescoping Buckets in a Supply Plan

You can configure your supply plan to use telescoping buckets. You can set your planning horizon to include only days, weeks, periods, or months. Or you can set your supply planning buckets at two levels of granularity. For two levels, select a planning horizon that's a combination of daily time buckets and less granular time buckets such as week, period, or month. The planning process calculates detailed plan information for the shorter time horizon (days), and plans the later part of the planning horizon with less granularity. You improve your plan run time by eliminating unneeded precision and detail for the later parts of the planning horizon.

Before you use telescoping time buckets, think about how many daily time buckets and less granular time buckets you want to use.

To use telescoping buckets, configure the plan parameters for your supply plan.

  1. In a Supply Planning, Planning Central, or Demand and Supply Planning work area, open a plan and navigate to the Plan Options page, Scope tab.

  2. In the Plan Parameters section on the Scope tab, select a supply planning calendar, which can be a 4/4/5 calendar or a Gregorian calendar.

  3. Next, select your supply planning buckets. The list of values for the bucket types is determined by the calendar that you specify.

    You can base your planning horizon on days, weeks, periods, or months. Or, you can specify a combination of daily time buckets and then specify less granular time buckets such as weeks, periods, or months. If you use two bucket types, the first bucket type must be Days.

  4. Specify the number of buckets for each supply planning bucket.

  5. Select Do not create partial buckets to create additional daily buckets in the plan to avoid partial buckets.

    Select this option to ensure that a week, month, or period always starts on the first defined day for that particular week, month, or period. For example, a weekly bucket starts on a Monday when you designate Monday as the week start date. A monthly bucket starts on the first day of the month.

    If you don't select this option, the plan doesn't add any additional daily buckets. Instead, the planning process creates a partial bucket and counts that partial bucket as the first week, period, or month, as specified in the plan options.

How Demands and Supplies are Impacted in Supply Plans that Use Telescoping Time Buckets

When you configure your supply plan to use telescoping time buckets, you can set your planning horizon to include only days, weeks, periods, or months. Or you can use telescoping buckets to plan in a combination of daily time buckets and more aggregate time buckets, such as weeks, months, or periods.

Let's say that you have a plan with time buckets larger than days.

  • The net forecast quantities that remain after forecast spreading and forecast consumption are aggregated up to the planning time bucket level.

  • These net forecast quantities are placed on the last working day of the planning time bucket.

  • The supply planning process considers each combination of item, organization, demand schedule, demand class, customer, and customer site.

For example, suppose the net forecast quantity is 10 units per working day per combination of item, organization, and demand class in a plan with all daily buckets. Your organization is set up for 5 working days per week. The same plan with weekly buckets displays an aggregated net forecast for a quantity of 50 units for each demand class. This aggregated forecast has a suggested due date of the last working day of each weekly bucket.

These are other ways that demands and supplies are impacted when you use weekly, monthly, or period time buckets.

  • All supply and demand orders and all resource requirement dates are subject to bucketing logic. In other words, for time buckets larger than days, dates calculated on supply and demand orders are bucketed to the last working day of the bucket. The working days specification is based on the supply planning calendar that you select on the Plan Options page, Scope tab, not the organization calendar.

  • When you release make or transfer planned orders created in planning time buckets larger than days, the orders have a suggested due date that corresponds to the last working day of the time bucket. Buy planned orders also have a suggested due date that corresponds to the last calendar day of the bucket. However, the implement date is set as the first calendar day of the bucket. This implement date ensures that the supplier delivers the material in time to meet the entire planning time bucket's demand for the item.

  • Firm dates, implement dates, and dates in the input data such as requested ship date or scheduled ship dates aren't subject to the bucketing logic. For example, you can firm a planned order that was previously bucketed to the last working day of the month to any day, regardless of whether day is the last day of the supply planning bucket or even a working day.

How Safety Stock is Calculated for Supply Plans That Use Telescoping Time Buckets

If you use days of cover for your safety stock calculation method, then the calculation method factors in the telescoping time buckets. If you do not use days of cover, then telescoping buckets has no impact on how safety stock is calculated.

For days of cover based safety stock calculations, the planning process prorates demand in the supply planning buckets based on the specified demand period.

Let's suppose you have an item with the safety stock planning method of Days of Cover. The Demand Period and Days of Cover values are set to 4 days. Additionally, the organization calendar has 7 working days.

calculate safety stock with telescoping buckets

Calculating Safety Stock for Day 1 (Daily Buckets)

Safety stock in the daily buckets sums the demands over the demand period. Next, that sum is divided by the demand period and multiplied by the days of cover.

In our example, the demand for Days 1 through 4 adds up to 70. This number is divided by 4 (demand period) and then multiplied by 4 (days of cover). So, the safety stock for Day 1 is 70.

Calculating Safety Stock for Day 5 (Daily and Weekly Buckets)

When the demand straddles the daily and weekly buckets, the demand in the weekly bucket is prorated.

In our example, Days 5 through 7 are daily buckets and Day 8 is in the weekly bucket. These steps show you how to calculate safety stock for Day 5.

  1. Add the demand for Days 5 through 7, which is 20 (5+5+10).

  2. The next portion of the time bucket is weekly, so to get the demand for Day 8, you must prorate the week. The prorated demand for Day 8 is 10 (1/7th of 70).

  3. Add the demand for the daily and prorated weekly buckets to determine the calculated safety stock for Day 5, which is 30 (20+10).

Calculating Safety Stock for Weekly Buckets

When the demand is in the weekly buckets, the safety stock is the prorated daily demand multiplied by the days of cover.

In our example, Week 2 demand is 90 units. The prorated daily demand is 12.85 (4/7th of 90) that you multiply by 4 (days of cover), which calculates to 51.4 for your safety stock for Day 9.

How Exceptions are Calculated in Supply Plans That Use Telescoping Time Buckets

When you use telescoping buckets in your supply plan, the planning process handles exception messages based on what you specify for Planning Time Buckets in plan options.

This table explains how the planning process calculates exceptions when you use time buckets larger than days.

Exception Type Calculation Logic
  • Orders To Be Rescheduled In

  • Orders To Be Rescheduled Out

The planning process generates reschedule exceptions only if the supply orders get rescheduled across planning time buckets.

Any reschedules of the order due dates within a planning time bucket doesn't trigger reschedule exceptions.

  • Late Supply Pegged to Sales Order

  • Late Supply Pegged to Forecast

  • Late Replenishment for Sales Order

  • Late Replenishment for Forecast

The planning process generates late supply or late replenishment exceptions only if the supply and demand dates are in different planning time buckets.

For example, a sales order suggested due date is in the middle of a week. The suggested due date of the supply is the last working day of the week. In this case, the planning process doesn't generate a Late Supply Pegged to Sales Order or Late Replenishment for Sales Order exception.

However, suppose you have a sales order suggested due date in the middle of a week. The suggested due date of the supply is the first working day of the following week. In this case, the planning process generates an exception.

  • Items with a Shortage

  • Items Below Safety Stock

The planning process creates an exception only if the available quantity is less than the required quantity at the planning time bucket level. The planning process evaluates item shortages by using the projected available balance on the last day of the planning time bucket.

The planning process ignores daily fluctuations within a planning time bucket.

  • Items with Excess Inventory

The planning process creates an exception only if the available quantity is greater than the required quantity at the planning time bucket level. The planning process evaluates item excesses by using the projected available balance on the last day of the planning time bucket.

The planning process ignores daily fluctuations within a planning time bucket.

  • Resource Overloaded

  • Supplier Capacity Overloaded

The planning process creates an exception only if the available capacity is less than the required capacity at the planning time bucket level.

For example, in a weekly bucket, a resource can have some overloads within the week on a few days. As long as the available capacity at the week level is more than the required capacity, the planning process doesn't generate a resource overload exception.

The planning process ignores daily fluctuations within a planning time bucket.

Guidelines to View and Edit Measure Data in Tables for Supply Plans That Use Telescoping Buckets

When you use telescoping buckets in your supply plan, there are some things to understand before you view plan output or edit measure data in tables.

If you use a table to view the plan output in a supply plan that includes the time dimension, the time hierarchy selected in this table must be the Supply Planning Calendar. Use this time hierarchy to ensure consistency between the level at which planning is performed and the level at which you view the plan output.

When you use telescoping buckets in a supply plan, you can't edit measure data in a table at a level lower than the supply planning bucket. For example, you can't edit data at the day level if your data in the table is at a weekly bucket. However, you can view and edit the measure data at or above the planning time bucket level.

Note: If you view data in a demand and supply plan, you can drill down to the daily level, even if you use telescoping time buckets. This is because demand planning allocates demand measures down to the day level.

Let's walk through how viewing and editing measure data in tables works in a bit more detail.

If you're viewing the portion of the plan horizon that's planned in: Measure data that you can view or edit in tables

Daily Buckets

You can view or edit the measure values in either daily, weekly, period, or monthly levels in the table.

Weekly Buckets

  • You can view or edit the measure values in either weekly or period levels in the table.

  • You can't view the data at the daily granularity, even though the planning process allocates some measure data down to the day level.

  • You can't drill down from the week to the day level.

  • Any edit that you make at the period level is allocated to the last day of each of the underlying weeks within that period.

Period Buckets

  • You can only view or edit the measure at the period granularity.

  • You can't drill down from the period to the week or day level.

  • Any edit that you make at the period level is allocated to the last day of the period.

Monthly Buckets

  • You can only view or edit the measure at the monthly granularity.

  • You can't drill down from the month to the day level.

  • Any edit that you make at the monthly level is allocated to the last day of the month.

These four measures work differently when you edit them.

  • Gross Forecast

  • Net Forecast

  • Manual Demand

  • Planned Orders

You can view the portion of the plan horizon that's planned in weekly buckets. Any edit that you make at the week level is allocated to the last day of the week for these four measures. After you save your plan, the supply planning process updates or creates demands and supplies. These demands and supplies have a suggested due date that's the last working day of the supply planning bucket.

Modeling a Supply Chain

How Phantom Assemblies Are Used in Supply Chain Planning

A phantom assembly, also known as phantom bill, is a nonstocked assembly that lets you group materials required to produce a subassembly. When you create a bill of material for a parent item, you can specify a component as a phantom. One bill of material can represent a phantom subassembly for one parent item, and a stocked subassembly for another parent item. A phantom bill of material enables you to manufacture and stock the assembly when necessary. For example, you can use phantoms to build and stock occasional spares for field service requirements. The planning process explodes through a phantom subassembly to the components.

Settings That Affect Phantom Assembly

The planning process ignores phantom assembly routing when you define a job or repetitive schedule. To avoid any additional lead time offset for components, you set the lead time of the phantom to zero.

How Phantoms Are Used in Planning

When model bills or option class bills are components to another bill of material, the component supply type is a phantom. Instead of passing the parent's planned orders to the phantom, netting the phantom, and passing requirements to the phantom's components, the planning process blows through the phantom to create component planned orders. For the organization parameter, you have only the Material Only option for Phantom Operation Sequence Inheritance. The planning process ignores order modifiers for items that have a phantom supply type. The planning process plans the phantom subassembly using the lot-for-lot lot-sizing technique.

Typically, phantom assemblies act as normal assemblies when they represent a top-level assembly, such as when you master schedule them or manufacture them using a discrete job. As a subassembly, however, they lose their identity as distinct assemblies and are a collection of their components. The components of the phantom subassembly are included on the job and in the planned supplies, but not the phantom itself. Using the bill of material to determine phantoms, has two advantages: it allows for more flexibility (because a component can be a phantom in one bill and not another), and treatment of phantoms in the planning process is consistent with Oracle WIP.

How FIFO Pegging Is Used in Supply Chain Planning

Pegging is a process that the planning calculations use to link the supply with the demand, and the demand with the supply. FIFO is first in, first out. In FIFO pegging, demands are linked to supplies on a day-by-day basis. The planning processes sort demands by day, demand type, and supply quantity in ascending order. The planning processes sort supplies by day, supply type, and supply quantity in ascending order.

For all reserved demands and supplies, the planning processes first pegs demands with reservations (existing or recommended) to the reserved supply without regard to the demand type, the supply type, and dates. Pegging always respects reservations. For unreserved demands and supplies, the planning processes sort demands day by day in the following sort order:

  • Past due sales orders

  • All sales orders

  • Manual demands

For all other demands, including forecasts and dependents demands, the planning processes sort supplies day by day in the following sort order:

  • On hand

  • Past-due supplies (firm by definition)

  • Existing firm supplies

  • Existing non-firm supplies

  • Planned orders

During demand and supply netting in planning calculations, if safety stock levels are specified for an item organization, then the netting is performed considering the daily safety stock level. The planning calculations do not use the notion of safety stock demand. As there is no concept of safety stock demand, there is no pegging of a supply to a safety stock demand. The planning calculations do not peg some or all of a supply to anything when some or all of the supply is used to meet the required safety stock level. A supply, which meets a safety stock level, pegs to either future demand or is not pegged. Excess supplies because of order modifiers can peg to nothing at the end of the planning horizons.

How Shrinkage Is Calculated

The planned quantities of products sometimes decrease or shrink as they move through the production process. Shrinkage rate is an item-organization attribute, which determines the expected scrap and other losses in inventory.

To overcome the inventory shrinkage, the planning process begins with production quantities greater than the required quantity to meet the demand. The planning process considers the value that you specify for shrinkage and uses it to plan for shrinkage of an item in an organization. The planning process plans for demand by starting with a quantity that considers shrinkage and then arrive at the required order quantity. The order quantity is the quantity after the shrinkage is applied. The planning process uses the shrinkage rate and the required order quantity to determine the start quantity. The planned order needs the start quantity to account for the shrinkage.

For example, consider an item that has a shrinkage of 10%. For a demand of 100, the planning process starts with a quantity that will shrink by 10% to arrive at 100.

The planning process derives the start quantity based on the following equation:

Start Quantity = {Order Quantity divided by (1 minus Shrinkage)} multiplied by 100

Start Quantity = {Order Quantity / (1-Shrinkage)} * 100

(100 / (100-10)) * 100 = 111.11

The supply planning process considers shrinkage for both planned orders and existing supplies. As work orders can be incomplete at the time of planning, you can track the status of the work order from your Supply Chain Planning work area.

Firming Supplies

When you firm a supply order, you can select either the start quantity or the order quantity as the firm quantity on the Supplies and Demands page. You can update either the Firm Quantity or the Firm Start Quantity column to a different value.

When you firm a planned order, the planning process updates the Firm Quantity column with the value in the Order Quantity column. You can also edit the Firm Quantity column based on your planning needs. Alternatively, you can specify the Firm Start Quantity column on a firm planned order. When you enter a value in the Firm Start Quantity column, the planning process clears the value from the Firm Quantity column.

When you rerun the plan in a simulation mode, you can see the following data:

  • For the Planned Order with Firm Start Quantity specified, the Start Quantity column displays the Firm Start Quantity value. The Order Quantity column displays a value based on the following calculations:

    Order Quantity = Firm Start Quantity * (1 - Shrinkage) = Firm Start Quantity multiplied by (1 - Shrinkage)

  • For the Planned Order with Firm Quantity specified, the Order Quantity column displays the Firm Quantity value. The Start Quantity column displays a value based on the following calculation:

    Start Quantity = Firm Quantity / (1 - Shrinkage) - Firm Quantity divided by (1 minus Shrinkage)

Calculating Shrinkage for Work Orders

A work order can be fully complete or partially complete during collections. When you collect a work order, the collected quantity represents the start quantity. The planning process populates these three columns only for work orders. The planning process calculates the new order quantity based on the current state of completion and the expected scrap. You can review the following parameters on the Supply Planning, Planning Central, and Demand and Supply Planning work areas to track the status of the work order:

  • Start Quantity

  • Completed Quantity

  • Scrapped Quantity

  • Remaining Quantity

  • Expected Scrap Quantity

  • Order Quantity

During collections, the planning process collects the start quantity from the execution systems. When you release a planned order, the planning process releases the releases the start quantity back to the execution systems.

Measures Enabled to Display Start Quantity

To view the start quantity and the start dates, the planning process uses the following three measures:

  • Supply Start Quantity

  • Reserved Supply on Start Date

  • Reserved Supply Value on Start Date

Analyze a Supply Plan

How Purchase Orders Are Scheduled

Purchase orders, also known as buy orders, enable you to accurately measure the transit time from the supplier to the organization. The following fields are included on the purchase order schedule:

  • Requested Ship Date

  • Promised Ship Date

  • Requested Delivery Date

  • Promised Delivery Date

  • Buyer-managed Transportation Indicator

  • Shipping Method

Buyer-managed Transportation specifies that the buying company is responsible for arranging the transportation, from picking up the requested goods to delivering to ship-to locations specified in the order. When the Buyer-managed Transportation indicator is not selected, delivery dates are populated on the purchase order and ship dates are not populated on the purchase order. When it is selected, the ship dates are populated on the purchase order and delivery dates may be populated on the purchase order.

When Buyer-managed Transportation is selected, the buyer communicates a requested ship date on Purchase Orders and the supplier provides a promised ship date in response. When not selected, delivery dates are communicated between buyer and supplier. In both cases, the purchase order also contains shipping method at the line level. Transit times can be defined between a supplier site and organization location for shipping methods. The planning process can consider transit times for purchase orders.

When the planning process creates planned purchase orders, the planning process uses the shipping method from the sourcing rule to calculate the transit time. The total lead time from planned purchase order start date to dock date includes both processing lead time and transit lead time.

When you release a planned purchase order from a Supply Chain Planning work area, the following information is sent to purchasing:

  • Shipping method

  • Requested ship date and requested delivery date. If Buyer-managed Purchasing is selected, then both ship and delivery dates are populated on the purchase order. If Buyer-managed Purchasing is not selected, then only the delivery dates are populated on the purchase order.

Purchase orders are scheduled backward from the order due date. Scheduling purchase order respects all valid shipping, receiving, transit, manufacturing, and supplier capacity calendars. In supply chain planning, if any dates are in the past, then the dates are set to the plan start date. The planning process issues reschedule recommendations for the following conditions:

  • When the purchase order Buyer-managed Transportation indicator is selected and the old ship date is different from the new ship date calculated by planning.

  • When the purchase order Buyer-managed Transportation indicator is not selected and the old delivery date is different from the new dock date calculated by planning.

Example of Backward Scheduling Calculations

Consider that the suggested due date is Day 10, where postprocessing = 1 day, transit time = 2 days, processing = 4 days, and preprocessing = 2 days. The following calculations are used for backward scheduling:

  • Suggested Due Date = Day 10

  • Suggested Dock Date = Day 9 (Dock Date = Due Date minus Postprocessing Lead Time)

  • Suggested Ship Date = Day 7 (Ship date = Dock Date minus Transit Lead Time)

  • Suggested Start Date = Day 3 (Start Date = Ship Date minus Processing Lead Time)

  • Suggested Order Date = Day 1 (Start Date = Preprocessing Lead Time)

How Backward Scheduling and Order Dates Are Calculated

Backward scheduling is the process by which lead time is applied to supply orders. When the planning mode is unconstrained, backward scheduling is performed by the planning process.

When you run a supply plan, the planning process reports constraint violations as capacity overloads and lead time exceptions so that you are alerted to supply problems. The supply for your sales order becomes due on the end demand date.

Settings That Affect Backward Scheduling and Order Dates

When supply is just in time for a demand, the supply completion date is the demand date. The supply is then scheduled backward to arrive at the start dates for each operation that must be completed and due dates for supply of lower-level components that make up the final supply.

During backward scheduling of dates, if the plan start date is crossed, then all earlier dates are bucketed to the plan start date. This is referred to as compression.

Backward scheduling affects order due dates in the following ways for different types of items:

  • For make items, compression begins at preprocessing lead time. The first operation and each successive operation are then compressed to zero duration until there is sufficient lead time for the remaining operations to complete using the resource duration.

  • For transfer and buy items, the preprocessing lead time is compressed first. The processing lead time is then compressed and if insufficient lead time remains, post processing lead time is compressed.

    Note: The processing time for a buy item is independent of item quantity.

You can set organization and customer receiving and shipping schedules and carrier transit schedules in the Manage Transportation Schedules section in Logistics. The only valid dates that planning calculations use for backward scheduling, are the working days on the manufacturing and shipping calendars. Calendar defaulting rules are used by planning to determine order dates calculations. The defaulting rules are:

  • Valid Supplier Capacity Calendar: Either the Supplier or Supplier Site Capacity Calendar is used or a fully open calendar of 7 days, 24 hours.

  • Valid Supplier Shipping Calendar: The Carrier, or Supplier, or Supplier Site Calendar, the Supplier, or Supplier Site Shipping Calendar, the Carrier, or Supplier Calendar, the Supplier Shipping Calendar, or a fully open calendar of 7 days, 24 hours is used.

  • Valid Organization Receiving Calendar: Either the Carrier or Organization Calendar is used, or the Organization Receiving Calendar, or the Organization Manufacturing Calendar.

Note: The defaulting rules are also applied to determine different calendars, such as Valid Organization Manufacturing Calendar, Valid Organization Shipping Calendar, Valid Customer Shipping Calendar, and Valid Transit Calendar.

How Backward Scheduling Is Calculated

Backward scheduling is calculated based on the following:

  • Planned Make Order: If your order is for a make item, the component due date is the start date for the operation that requires it and supply is scheduled backward. The work definition provides the information about the component and resource requirements for such an order. The new order due date becomes the date of the end demand.

    Note: A make planned order exists only as a planned order in supply chain planning, and is not part of manufacturing yet.
  • Work Order: If your order is for an item which already exists as a work order, the component and resource requirements are collected from the work order itself. The planning process can shift the work order to a new set of dates without making alterations to the relationship of dates in the work order. The component due dates for that end item are collected from manufacturing.

For example, take the following scenario:

  • A is an end item with two components B and C that have different start dates.

  • C is a make item with two components D and E that also have different start dates.

Components D and E are in the lower level of the work definition for item C and they are needed for the assembly of the make planned order C. Similarly, components B and C are in the lower level of the work definition for item A and they are needed for the assembly of the work order A.

The following figure illustrates the relationship between components A, B, C, D, and E that are used to make an end item.

This figure illustrates the relationship between
the components of an end item. Components D and E are used to make
component C. Components C and B are used to make component A

The planned make order rescheduled dates are determined by total quantity of demands and order modifiers. Total make order lead time (days) = fixed lead time + quantity multiplied by variable lead time.

The work order rescheduled dates are determined by component requirement start dates and end dates. If the end date is moved by 3 days, the start date is also moved by 3 days.

Rework and Transform Work Orders

Rework and Transform work orders are collected during the data collections process and they are shown as Nonstandard work orders in Planning Central, Supply Planning, and Demand and Supply Planning work areas.

You create Rework work orders in Oracle Manufacturing Cloud to perform rework activities on items that have issues or defects. The objective of rework is to make those items usable to satisfy customer demand.

You create Transform work orders in Oracle Manufacturing Cloud to enhance or upgrade existing items by adding or removing selective components from existing items. The objective of Transform work orders is to transform the existing item into a new item.

Sometimes, the rework and transform activities result in the removal of components from the item being reworked or transformed. You can use the removed components to satisfy future demands. Data collection collects the removed components and you can search the removed components when you select the order type as Nonstandard work order by-product on the Supplies and Demands page. The data collection process filters out all work order demands for an item, when the item itself is manufactured by the Rework work order.

The planning process considers all Nonstandard work orders as firm order. The Nonstandard work order does not influence the calculation of natural time fences for the item.

How Plan Recommendations Are Processed

Supply chain planning can generate plan recommendations. These are suggestions to take actions that can create a balance between supply and demand. You can view these suggestions in the Recommendations exception group.

The planning process can release two primary kinds of plan recommendations.

  • It can suggest new planned orders: The planning process suggests that you order some new supply to meet the demand for a certain product. All of these supply suggestions are released by planning to Oracle Fusion Supply Chain Orchestration in the form of new planned orders. This new supply can be in the form of a manufacturing job in which case the planned order is released to manufacturing. If the new supply suggestion is a purchase requisition, Supply Chain Orchestration releases the planned order to purchasing. If the new supply suggestion is a transfer, Supply Chain Orchestration releases the planned order to logistics.

  • It can suggest rescheduling or cancellation of existing supplies: The planning process suggests that you reschedule or cancel a current supply because the total supply for a product might be in excess compared to the demand for it. You can cancel current planned orders that exist as discrete jobs or as purchase orders or transfer orders. Similarly, planning can also suggest that you reschedule some of the existing supply to meet demand in future. The rescheduling is done for supplies that exist as discrete manufacturing jobs, purchase orders or transfer orders.

If the planning process suggests new supply, and the planner releases the planned order, the released planned order is sent to Oracle Fusion Supply Chain Orchestration. The planned order has the following details specified in it:

  • Item

  • Organization

  • Start date, dock date and if applicable, ship date

  • Source

    • If it is a make item, the organization remains the same.

    • If it is a transfer item, the source organization must be specified.

    • If it is a buy item, the supplier and supplier site must be specified.

You can open the Supplies and Demands window from the Supply Analysis page layout to view individual planned orders. You can also open the material plan to view the aggregate total supply for your plan.

You cannot view rescheduled plan recommendations in the material plan. The material plan accepts the recommendations from supply chain planning and uses the rescheduled dates when aggregating supply. The planning calculations assume that the rescheduled recommendations are already incorporated within the aggregate supply calculations and use the rescheduled dates.

How Plan Recommendations Are Released

One of the key execution capabilities that supply chain planning offers is that you can release plan recommendations to implement standard plan-to-produce business flows. You can release plan recommendations either from a supply plan or from a demand and supply plan.

You can either manually review and release each supply chain planning recommendation or automatically approve and release them.

The following table illustrates the plan recommendations that either the planning processes can release automatically for different order types, or you can manually release the orders:

Order Type Updates Suggested by Planning Calculations Actions You Can Take

Purchase Orders

Quantity, Delivery Date, Firm Status

Reschedule, Cancel

Purchase Requisitions

Cancellation

Cancel

Work Orders

Start Date, Completion Date, Firm Status

Reschedule, Cancel

Transfer Orders

Start Date, Arrival Date, Shipping Method

Reschedule, Cancel

Sales Orders

Scheduled Arrival Date, Scheduled Ship Date, Shipping Method

Reschedule

Note: In all cases, cancellation entails releasing an order quantity of zero.

For purchase orders and transfer orders, you can manually change the input values for the updates suggested by the plan recommendations. You can do this in the planners' workbench.

The following recommendations are released by supply chain planning to Oracle Fusion Supply Chain Orchestration:

  • New planned orders for make, buy, and transfer of supplies

  • Reschedules of existing make, buy, and transfer supplies

Oracle Fusion Supply Chain Orchestration processes these recommendations and sends both new releases and reschedules to manufacturing, purchasing, and logistics depending on the type of supply.

The following recommendations are released by supply chain planning to Oracle Fusion Order Management:

  • Reschedules of sales orders

  • New planned orders for drop shipments

Manually Release Plan Recommendations

You can manually review the plan recommendations that are generated by the planning process and then release them for execution. You can either release new planned orders as supply, or reschedule the supplies existing in the form of work orders, transfer orders and purchase orders.

To review and release plan recommendations, perform the following steps:

  1. In the configurable planners' workbench, select the Supply Analysis page layout.

  2. Navigate to the Supplies and Demands window and search for your orders.

  3. Select one or multiple rows which show planned orders that you want to release for execution.

  4. Click Actions and drill down to Mark for Release.

    Note: Verify that the Release Status field is updated to Marked for Release for all the selected rows.
  5. Save your changes.

  6. Navigate back to the Supply Analysis page and click Actions. Select the Release option. This initiates the Release Plan process. A dialog box displays the status of the process.

  7. You can also verify the status of this process by navigating to the Scheduled Processes page. Follow these steps to verify release results on the Scheduled Process page:

    1. Use the Hierarchy view. The top-level process name is Release Plan.

    2. Drill down to Release Planning Recommendations and select Load Interface Tables.

    3. Check the log file of each table to confirm the release. Also, check the submission notes for each process. The notes identify the type of release.

After you release the plan recommendations, all new, rescheduled, or canceled planned orders are sent to Oracle Supply Chain Orchestration Cloud. Navigate to the Supply Chain Orchestration work area to view requests that were not processed and check why these exceptions were created.

Release Plan Recommendations to an External Execution System

You can release plan recommendations or planned orders from Oracle SCM Cloud applications to an external execution system. When you release a planned order, the planning process generates a CSV file for the planned order. The planning process attaches the generated CSV file to the scheduled processes called Release Planning Recommendations: Release to External Source Systems. You can download the CSV file from the scheduled processes. The planning process also saves the CSV file in a Zip file format in the Universal Content Manager. The name of the Zip file is ReleasetoExternal.zip.

Prerequisite

Before you can release planned orders from Oracle SCM Cloud applications to an external execution system, you must do the following:

  1. Assign your organization as an external source system.

  2. Run collections from the external source system.

After you successfully run collections, you can plan your orders and release them to the external source system. The release process is same for an Oracle Fusion source system and an external source system.

Release Planned Orders

Follow these steps to release the planned orders:

  1. From your Supply Chain Planning work area, click the Tasks panel.

  2. Click Manage Plans and then search your plan.

  3. Open the plan, and then click Actions > Release.

The planning process exports the plan in a CSV format and attaches the CSV file to the scheduled processes. Also, the planning process save the CSV file in a Zip file format in the Universal Content Manager. You can download the Zip file from the File Import and Export link in the Navigator.

For more information, see Releasing Plan Recommendations to External Systems (Doc ID 2305394.1) on My Oracle Support at https://support.oracle.com.

Create and Release Manual Planned Orders

You can create manual planned orders for buy, make, and transfer order types. For each planned order type, you can select your source specifications. After you create the manual planned orders, you can then release the orders to the relevant source application. Creating and releasing manual planned orders enables you to respond quickly to issues by creating supplies in the source applications. You can create and release manually-created planned orders from the Planning Central, Supply Planning, or Demand and Supply Planning work areas.

To create a manual planned order from the Supplies and Demands page, click the Create icon. The Create Order dialog box opens. In the Create Order dialog box, select the source type. The source type that you select enables additional parameters for the supply source.

Source Type Additional Parameters

Buy

  • Supplier

  • Supplier Site

  • Shipping Method

Make

  • Item Structure Name

  • Work Definition

Transfer

  • Source Organization

  • Shipping Method

After you create the manual planned orders, optionally rerun your plan to determine if the new planned orders can be executed. You can then mark the manually-created planned orders for release on the Supplies and Demands page. Next, run the release process and the planning process releases your manually-created planned orders.

Circular Transfer Orders

Use circular transfer orders to rebalance your inventory at both the source and destination organizations. In Oracle Planning Central Cloud and Oracle Supply Planning Cloud, supply planning can process a transfer order that is a circular order in the plan. The supply plan considers the circular transfer order and treats it as a supply at the destination organization. The supply planning process marks both the transfer order supply and the transfer order demand as firm. This means that the plan won't recommend reschedules or cancellations for the circular transfer order, which can generate late supply exceptions or excess inventory exceptions.

For example, your sourcing rule is set to transfer supply from source organization ORG1 to destination organization ORG2. You discover that you have excess inventory in ORG2 due to a canceled sales order. You decide that you want to transfer supply from ORG2 back to ORG1, so you manually create a transfer order to move the excess inventory. The planning process includes your circular transfer order in the plan as a supply to ORG1 and is marked as a firm supply in the plan.

The planning process pegs the circular transfer demand to an existing supply. In our example scenario, the excess inventory is pegged to the transfer order demand in destination organization ORG2. The transfer supply is pegged to some demand in source organization ORG1. If there is no demand in the source organization, then the transfer order supply doesn't peg to anything.

The transfer order supply in the destination organization can be early, on time, or late for some demand. However, it can't be rescheduled by the planning process.

If the transfer order is inside the planning time fence, it can cause these supply exceptions because new supplies cannot be created:

  • Late Supply Pegged to Forecast

  • Late Supply Pegged to Sales Order

If the transfer order is outside the planning time fence, it can cause supply exceptions because the transfer is firm. The Items with Excess Inventory exception is generated when the Projected Available Balance on a particular day exceeds the Safety Stock Level quantity.

If the transfer order is in the past, it causes the Past Due Orders exception.

Note: If you create a transfer order in error, there may not be supply in the ship-from organization to use for the transfer. Circular pegging occurs in this case, with the transfer demand pegging to the transfer supply. In this situation, you should cancel the circular transfer.

How You Publish Order Forecasts

You publish order forecast for your suppliers. The suppliers can view the forecast and send their commits to you as a supplier capacity. You do not have to save the plan to the database before publishing the order forecast.

You can publish order forecast from the following pages in the Supply Planning, Demand and Supply Planning, or Planning Central work area:

  • Items

  • Supplies and Demands

  • Manage Plans or individual plan

When you select Publish Order Forecast from the Actions menu, the planning process submits a job in Scheduled Processes. The planning process deselects all additional parameters that are available in the Publish Order Forecast job and submits the job. If you want to select various additional parameters that are available for the Publish Order Forecast scheduled process, you must submit the job manually from the Scheduled Processes work area and select your parameters.

Points to Remember

Consider the following points before you publish the order forecast:

  • When you publish the order forecast from the Manage Plans page, you publish the order forecast for all the valid suppliers within the plan.

  • When you are on the Items page or the Supplies and Demand page, you can publish order forecast that belongs to one Item-Organization at a time. You cannot publish two rows of items with different Item-Organization combinations.

  • The Publish Order Forecast job also launches the Supply Planning Collaboration Decomposition job. You do not have to run the decomposition job separately.

How You Publish Supply Order Details

One of the important aspects of collaborating with suppliers is to provide them an insight into the open supply orders. Collaborating with suppliers on open supply orders enables you and your suppliers to plan supply chain activities more efficiently. Supply orders are of four types: purchase order, purchase requisition, shipment in receiving, and in-transit shipment.

You can publish supply orders along with planned orders to Oracle Supply Chain Collaboration Cloud using the Publish Order Forecast scheduled process. Use the Navigator to access the Scheduled Processes page where you can select the Publish Order Forecast scheduled process. In the Process Details dialog box for the Publish Order Forecast scheduled process, you can select the following check boxes:

  • Include purchase orders in order forecast: Includes purchase orders within the order forecast. All the open purchase orders for an item on a day are added to the planned orders on that day and published as order forecast at the supplier or supplier site level.

  • Include requisitions in order forecast: Includes purchase requisitions within the order forecast. All the open purchase requisitions for an item on a day are added to the planned orders on that day and published as order forecast at the supplier or supplier site level.

  • Run the Supply Planning Collaboration Decomposition job: Runs the Supply Planning Collaboration Decomposition scheduled process along with the Publish Order Forecast scheduled process.

  • Publish order details: Publishes all four types of supply orders along with the planned orders.

You can narrow your search in the Supplies and Demands table by selecting a condition from the search filter. Conditions are a group of supply-related attributes with a specific value. A condition can have one or more attributes.

From an open plan, open the Supplies and Demands table and click the Manage Conditions button in the Search region. When you open the Manage Conditions dialog box, you can create and manage conditions. When you create conditions, you specify attributes for your conditions and provide a value to those attributes. The value could be a specific date or you can specify the number of days relative to another date for a given attribute.

The relative comparison options are available only for date-based attributes, such as Requested Ship Date or Actual Arrival Date. The values for relative comparison options are enabled when you select one of the following operators:

  • Before

  • After

  • On or before

  • On or after

For example, consider a scenario where you make the following selections for a condition:

Condition Values

Attribute

Suggested Start Date

Operator

On or before

Relative Date

Scheduled Ship Date

Number of Days

10

In this case, the condition would consider the Suggested Start Date as 10 days on or before the Scheduled Ship Date. If the Scheduled Ship Date is 10-January-2020, then the condition would filter all orders whose Suggested Start Date is on or before 01-January-2020.

Material Plan View: Explained

The Material Plan is a predefined table in Supply Chain Planning. The Material Plan table is a time-phased view of the demands, supplies, and daily balances across the plan horizon for any item and organization combination. The item, organization, and measures are displayed for the row headings, while the time periods are displayed for the column headings. Access the Material Plan table from the Planning Central or Supply Planning work area.

Caution: If you open the predefined Material Plan table without using any filters, it can take a long time to display the results. Oracle recommends that you create a copy of the Material Plan and add filters to reduce the item count and horizon of the material plan.

You can edit the measures at aggregate levels and allocate the measures to lower levels. For example, you can edit the manual demand measure by organization, item, and period, and then allocate that measure down to the day.

You can edit a measure's value inline by clicking in a cell and changing the value. Or, you can use mass editing capabilities that are available to adjust several cells at the same time. For example, you can increase the forecast of item X for the next three months by 30 percent.

You can also display the material plan as a graph. Each measure is plotted along the x-axis, which is the time dimension.

From the Material Plan table, you can drill down to the following tables:

  • Item Exceptions

  • Items

  • Supplies and Demands

  • Supply Chain Bill

Although you cannot modify the layout of the material plan, you can copy the material plan and configure the new layout in the following ways:

  • Add or remove members and measures

  • Filter members, such as items or categories

  • Add conditional formatting, such as font, background color, and status icons

  • Add user-defined drill-to actions

Manage Demand Fulfillment

To improve the demand fulfillment of your plan, use the Demand Fulfillment table to review the at-risk demands in your plan and their related recommendations. You can take actions to accept recommendations from this page.

In the Demand Fulfillment UI, you can:

  • View prioritized at-risk demands based on order values weighted by the number of associated recommendations.

  • Take actions to accept or mark recommendations as complete.

  • Review summary information provided for the current demand fulfillment position of your plan to analyze the potential for improvement based on selected at-risk demands. The information also provides an understanding of the expected demand fulfillment position based on accepted and completed recommendations.

To review and improve your demand fulfillment:

  1. In a Supply Planning, Planning Central, or Demand and Supply work area, select the Manage Plans task.

  2. On the Manage Plans page, search for and open your plan.

  3. In the Page Layout list, select Plan Summary.

    Note that the tiles in the Plan Summary layout include a Demand at Risk in thousands tile.

  4. In the Demand at Risk in thousands tile, click the Select Tile bar to review the Demand at Risk Summary data.

    You can review the demand at risk data through a treemap view or a table view, the treemap view is the default. To switch to the table view, click the Show Table icon.

  5. To review the demand at risk data:

    • Using the treemap: Click an area in the treemap. Typically, you want to start with the area that has the highest demand at risk value. From the Drill To actions, click Demand Fulfillment.

    • Using the table: Click the Show Table icon. In the Demand at Risk Summary table, click a cell. Typically, you want to start with the cell that has the highest demand at risk value. From the Drill To actions, click Demand Fulfillment.

  6. The Demand Fulfillment UI shows the individual orders that are at-risk and their related recommendations.

    Tip: You can open the Demand Fulfillment table directly without drilling from the Plan Summary. After you open a plan, click the Open button at the page level. In the Open Table, Graph, or Tile Set dialog box, search for and select the Demand Fulfillment table. In the Demand Fulfillment UI, you can search for at-risk demands by using the filter fields in the search panel.

    Review the At-Risk Demand section and the Recommendations section, and then take further actions.

The recommendation summary information available on the Demand Fulfillment page can assist you in selecting at-risk demands to work on. You have a summary graph, a summary table, and a cumulative at-risk demand value slider for filtering the information to analyze the recommendations.

Recommendation Summary Graph

The recommendation summary graph shows the cumulative at-risk demand value and the related number of recommendations associated with that value. To maximize effort, aim for a low number of recommendations with the associated at-risk demand value substantial enough to make a difference in demand fulfillment percentage. Use the slider to filter by top n, the cumulative demand value.

For example, move the slider to the marker most closely matching $500,000 and click Go or arrow button to the right of the slider. After moving the slider to the left, the graph shows the at-risk demands that make up the top n of at-risk demand value.

Recommendation Summary Table

In addition to the recommendation summary graph, demand fulfillment also provides a summary table that shows you information about demand fulfillment position.

Column Name Description

Actual

Indicates the demand fulfillment position based on selection criteria coming from the search panel. This column is not impacted when you move the cumulative at-risk demand value slider.

Potential

Indicates the demand fulfillment position for a product category if all the selected at-risk demands were no longer at risk. Moving the slider to the left selects only the top n cumulative at-risk demands that meet the selection criteria coming from the search panel, thereby applying an additional filter on top of the selection criteria.

Accepted

Indicates the demand fulfillment position when the recommendations are accepted or completed. The values in this column change when you accept or complete the recommendations.

You take actions on the demand fulfillment recommendations by accepting recommendations. Five types of recommendations are associated with an at-risk demand. They are displayed in tabs under the Recommendations section on the Demand Fulfillment page.

Following are the recommendation tabs:

  • Expedite Buy Orders

  • Expedite Make Orders

  • Expedite Transfer Orders

  • Add Resource Availability

  • Add Supplier Capacity

You can choose to view all recommendations associated with all at-risk demands, or choose to view the recommendations associated with the demands that you have selected.

Expedite Recommendations

You can review and accept three types of expedite recommendations:

  • Expedite buy orders: This includes purchase orders, requisitions, and planned buy orders.

  • Expedite make orders: This includes work orders and planned make orders.

  • Expedite transfer orders: This includes transfer orders and planned transfer orders.

Expedite recommendations show when the supply is needed (expedite date) and how many days earlier (expedite days) the supply is required than currently planned.

Regardless of the type of expedite recommendation, many columns of an expedite recommendation are the same. For example, organization, item, order, expedite date, and expedite days are common to all expedite recommendations. However, some columns are specific to certain types of expedite recommendations. For example, processing lead time is specific to the make order recommendation tab.

When you accept an expedite recommendation, the order is firmed using the expedite date as the firm date. When the plan is run after accepting the recommendation, the planning process assumes the supply is available on the firm date.

Add Resource Availability Recommendation

The add resource availability and add supplier capacity recommendations are handled in similar ways. The add resource availability recommendation indicates how many hours a resource is overloaded. To resolve an add resource availability recommendation, you must increase the available hours through Oracle Fusion Manufacturing applications and then recollect the data.

If you have increased the available hours, but have not run collections yet, you can mark the recommendation as complete to indicate that you have taken action against the recommendation.

Add Supplier Capacity Recommendation

The add supplier capacity recommendation indicates how many additional units of capacity are required. To resolve an add supplier capacity recommendation, you must increase the supplier capacity. Use the CSV file method to upload an increased supplier capacity for the item.

If you have increased the capacity, but have not run collections yet, you can mark the recommendation as complete to indicate that you have taken action against the recommendation.