Configure Measure-Based Exceptions for Constrained Supply Plans

This topic covers predefined measure-based exceptions that are available in unconstrained Supply Planning but aren't available as predefined exceptions in constraint-based Oracle Supply Planning. You can configure these exceptions as user-defined exceptions in constraint-based Supply Planning.

Items Below Safety Stock

The planning process generates the Items Below Safety Stock exception when the projected available balance for a planning bucket is below the specified safety stock level for the planning bucket. Safety stock is maintained to mitigate risk of stockouts caused by uncertainties in supply and demand. When the projected material balance drops below the safety stock level, you have a potential stockout. You can increase your supply orders by creating new purchase orders or rescheduling existing ones to bring the material balance above the safety stock level.

Use these steps to configure an Items Below Safety Stock exception for a constrained supply plan.

Navigate to the Tasks panel. In the Configuration section, click the Configure Exceptions link.
On the Manage Planning Measures page, click Actions and then select Create.

In the Create Exceptions dialog box, in the General Properties section, enter or select the following:

Parameter	Value
Exception	Items Below Safety Stock
Display Name	Items Below Safety Stock
Exception Group	Supply Planning Exceptions
Base Measure	Projected Available Balance

On the Level tab, specify the dimension and its corresponding hierarchy and level.
On the Threshold tab, define the threshold for the base measure as Projected Available Balance Less than Safety Stock.
- In the Operation field, select Less than
- In the Threshold field, select Measure and then select Safety Stock from the list of values.
Click Save and Close.

Items with a Shortage

The planning process generates the Items with a Shortage exception when the item has a negative on hand at the end of the day. The items with a shortage refers to the situation when the projected material balance suggests that there is less than zero of the item or items in question. You can rectify this situation by increasing your supply orders, such as creating new purchase orders or rescheduling existing ones. In addition you can analyze your forecast demand to determine whether the forecasts are too optimistic and they can be lowered to remove the shortages.

Use these steps to configure an Items with a Shortage exception for a constrained supply plan.

Navigate to the Tasks panel. In the Configuration section, click the Configure Exceptions link.
On the Manage Planning Measures page, click Actions and then select Create.

In the Create Exceptions dialog box, in the General Properties section, enter or select the following:

Parameter	Value
Exception	Items with a Shortage
Display Name	Items with a Shortage
Exception Group	Supply Planning Exceptions
Base Measure	Projected Available Balance

On the Level tab, specify the dimension and its corresponding hierarchy and level.
On the Threshold tab, define the threshold for the base measure as Projected Available Balance Less than Safety Stock.
- In the Operation field, select Less than
- In the Threshold field, select Value and then enter 0 (zero) in the value field.
Click Save and Close.

Items with Excess Inventory

The planning process generates the Items with Excess Inventory exception when the projected available balance for a planning bucket is higher than the specified safety stock level for the planning bucket. The excess inventory is a product that hasn't yet been sold and exceeds the projected consumer demand for that product.

The Items with Excess Inventory exception usually represents some type of mismanagement of stock demand due to factors such as over-buying, inaccurate projections, canceled orders, a bad economy, unforeseen weather changes, unpredictable consumer demand, or late or early delivery of goods.

Use these steps to configure an Items with Excess Inventory exception for a constrained supply plan.

Navigate to the Tasks panel. In the Configuration section, click the Configure Exceptions link.
On the Manage Planning Measures page, click Actions and then select Create.

In the Create Exceptions dialog box, in the General Properties section, enter or select the following:

Parameter	Value
Exception	Items with Excess Inventory
Display Name	Items with Excess Inventory
Exception Group	Supply Planning Exceptions
Base Measure	Projected Available Balance

On the Level tab, specify the dimension and its corresponding hierarchy and level.
On the Threshold tab, define the threshold for the base measure as Projected Available Balance Less than Safety Stock.
- In the Operation field, select Greater than
- In the Threshold field, select Measure and then select Safety Stock from the list of values.
Click Save and Close.