Static Policies or Time-Phased Policies in Oracle Replenishment Planning
The unit of measure (UOM) you select for a policy assignment set at the segment or item-location level decides whether the policies are static or time-phased.
If you selected Units as the UOM, the policies are static. If you selected Days, the policies are time-phased.
In static policies, the values of measures don't vary from day to day. In time-phased policies, these measure values can vary from day to day.
Use static policies when the total demand doesn't drastically change from day to day, and use time-phased policies when the total demand can vary from day to day.
If required, you can override the values of these measures for a replenishment plan by using these tables:
-
Manage Policy Parameters by Item: Use this table when you want to change the measure values for all days.
-
Replenishment Workbench: Use this table when you want to change the measure values for specific days.
Static Policies
This table illustrates how static policies are calculated:
|
Measure |
Day 1 |
Day 2 |
Day 3 |
Day 4 |
Day 5 |
Day 6 |
Day 7 |
Day 8 |
Day 9 |
Day 10 |
Day 11 |
Day 12 |
Day 13 |
Day 14 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Minimum Quantity |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
|
Adjusted Minimum Quantity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
|
Final Minimum Quantity |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
|
Maximum Quantity |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
|
Adjusted Maximum Quantity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
80 |
80 |
80 |
80 |
80 |
80 |
80 |
|
Final Maximum Quantity |
55 |
55 |
55 |
55 |
55 |
55 |
55 |
80 |
80 |
80 |
80 |
80 |
80 |
80 |
This table depicts the calculation of static policies for a replenishment plan with a planning horizon of 14 days.
The minimum quantity is calculated by the following formula: Demand During Lead Time + Safety Stock, where Demand During Lead Time = Total Lead Time * Average Daily Demand. For a buy order, the total lead time is the sum of the preprocessing, processing, and postprocessing lead times and transit time. For a transfer order, the total lead time is the sum of the preprocessing and postprocessing lead times and transit time.
The maximum quantity is calculated through the days of cover, minimum plus order quantity, or minimum plus economic order quantity (EOQ) method.
Time-Phased Policies
This table illustrates how time-phased policies are calculated:
|
Measure |
Day 1 |
Day 2 |
Day 3 |
Day 4 |
Day 5 |
Day 6 |
Day 7 |
Day 8 |
Day 9 |
Day 10 |
Day 11 |
Day 12 |
Day 13 |
Day 14 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Total Demand |
10 |
10 |
10 |
15 |
15 |
15 |
20 |
20 |
20 |
10 |
10 |
10 |
15 |
15 |
|
Minimum Days |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
3 |
|
Maximum Days |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
|
Minimum Quantity (time-phased value) |
30 |
35 |
40 |
45 |
50 |
55 |
60 |
50 |
40 |
30 |
35 |
40 |
40 |
40 |
|
Adjusted Minimum Quantity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Final Minimum Quantity (time-phased value) |
30 |
35 |
40 |
45 |
50 |
55 |
60 |
50 |
40 |
30 |
35 |
40 |
40 |
40 |
|
Maximum Quantity (time-phased value) |
75 |
85 |
95 |
105 |
100 |
95 |
90 |
85 |
80 |
80 |
80 |
80 |
80 |
80 |
|
Adjusted Maximum Quantity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Final Maximum Quantity (time-phased value) |
75 |
85 |
95 |
105 |
100 |
95 |
90 |
85 |
80 |
80 |
80 |
80 |
80 |
80 |
This table depicts the calculation of time-phased policies for a replenishment plan with a planning horizon of 14 days.
The total demand is calculated according to the forecast processing logic.
The formula for the calculation of the minimum days is Minimum Quantity (static value)/Average Daily Demand. The formula for calculation of the maximum days is Maximum Quantity (static value)/Average Daily Demand.
The formulas for the calculation of the static values of the minimum and maximum quantities are the same as those used for static policies.
For the calculation of the time-phased minimum quantity for Day X, the minimum days are considered, and the total demand is summed up starting from Day X for the minimum days. If the number of days left in the planning horizon is less than the minimum days on Day X, the previous day's time-phased minimum quantity is used. For the calculation of the time-phased maximum quantity for Day X, the maximum days are considered, and the total demand is summed up starting from Day X for the maximum days. If the number of days left in the planning horizon is less than the maximum days on Day X, the previous day's time-phased maximum quantity is used.