How Demand and Supply Side Changes Are Managed for Outside Processing
Demand side changes in outside processing refer to changes to a work order with supplier operations.
It can also be a result of reporting transactions at a count point operation prior to the supplier operation which impacts the associated purchasing and shipping documents. This can be any of the following:
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Work order quantity change
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Work order status change
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Work order date change
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Scrap at prior operation
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Reversal at prior operation
In such cases, Supply Chain Orchestration propagates the work order changes to the associated purchase orders. Open shipments, if any, are canceled only on closure or cancellation of the work order.
Supply side changes in outside processing refer to the changes to an outside processing purchase order in Purchasing. This can be any of the following:
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PO status change
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PO quantity change
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PO requested date change
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PO schedule split
Order Orchestration reports such change events and notifies Manufacturing. This results in the logging of supply operation exceptions. Users can review the exception details and directly navigate to the Review Supplier Operation Details page to take appropriate actions.
You can perform corrections and returns on receipts related to outside processing to handle issues related to the quality and the quantity of the goods that are delivered to, or returned from manufacturing. These can be any of the following:
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Overreceipt: In cases where the quantity received at a supplier operation is more than the quantity requested, or completed at the immediate prior operation, or shipped to the supplier for processing, a production supervisor can use the Correct Overreceipt action in the Review Supplier Operations Details page to correct the overreceipt quantity. You need to select the desired receipt in the Receiving Details region in the Review Supplier Operations Details page for the supplier operation and click on the Correct Overreceipt button and enter the quantity to correct.
Note: The overreceipt quantity at a supplier operation is automatically reduced by an equivalent amount if you do either of the following: -
Return to supplier: In cases where quantities need to be returned to the supplier for reasons such as bad quality, a production supervisor can use the 'Return to Supplier' action in the Review Supplier Operations Details page to return the quantities to receiving. You need to select the desired receipt in the Receiving Details region in the Review Supplier Operations Details page for the supplier operation and click on the Return to Supplier button and enter the quantity to return.
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Return to receiving: In cases where quantities need to be returned to the receiving for reasons such as bad quality, a production supervisor can use the Return to Receiving action in the Review Supplier Operations Details page to return the quantities to the supplier. You need to select the desired receipt in the Receiving Details region in the Review Supplier Operations Details page for the supplier operation and click on the Return to Receiving button and enter the quantity to return.
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Receipt and return corrections: In cases where quantities that were received or returned need to be corrected for reasons such as wrong data entry, a production supervisor can use the Correct action in the Review Supplier Operations Details page to return the quantities to the supplier. You need to select the desired receipt or return transaction in the Receiving Details region in the Review Supplier Operations Details page for the supplier operation and click on the Correct button and enter the quantity to correct.
For more information about demand and supply side changes for outside processing, refer to the Manage Production chapter of the Oracle Fusion Cloud SCM: Using Manufacturing guide.