Overview of Replenishment Planning for Subinventories
This topic is an overview of how replenishment planning is done at the subinventory level.
These points describe replenishment planning for subinventories:
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Replenishment planning is done for subinventories and organizations in the same way.
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Organizations can be set up so that their subinventories are included for replenishment planning.
Replenishment planning can be done for either an organization or its subinventories.
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You can configure assignment sets, sourcing rules, and bills of distribution for subinventories.
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Historical data is collected at the item-subinventory level.
The forecast can be based on shipments history or consumption history.
The file-based data import (FBDI) templates can also be used for collecting the following information at the subinventory level:
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Item subinventories
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Movement requests
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Shipments and consumption history transactions
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On-hand inventory
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Purchase orders, purchase requisitions, and transfer orders
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External forecasts
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Policy overrides
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If lead times and order modifiers are defined at the item-subinventory level, they're used. Otherwise, lead times and order modifiers defined at the organization level are used.
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For replenishment planning at the subinventory level, open transactions (purchase orders, purchase requisitions, transfer orders, and movement requests) have to be available at the subinventory level, and open transactions at the organization level aren't considered.
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The scope of a replenishment plan can include both organizations and subinventories. Some or all of the subinventories for an organization can be included in the scope. However, if the scope includes subinventories, the replenishment plan can't be used for Oracle Transactional Business Intelligence (OTBI) reporting.
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The following types of inventory orders are supported:
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Interorganization transfer order: From one organization to another, or from one organization to the subinventory of another organization.
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Intraorganization transfer order: From one subinventory of an organization to another subinventory of the same organization.
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Movement request: From one subinventory of an organization to another subinventory of the same organization.
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Purchase order or purchase requisition: From a supplier to an organization or a subinventory of the organization.
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The information for subinventories can't be aggregated to the level of the parent organization.
Replenishment Planning Tasks at the Subinventory Level
You can do these tasks at the item-subinventory level using Oracle Replenishment Planning:
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Assign item-subinventory combinations to segments, and override segments for the combinations.
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Accurately predict demand on the basis of shipments history or consumption history.
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Compute and view policy parameters.
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Override policies.
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Trigger replenishment orders.
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Review analytics.
Subinventories are listed in the <organization>:<subinventory> format in all predefined analytics, tables, and graphs and on the Members tab of the Selector Tool.
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Perform simulations.
The collected attributes for item-subinventory combinations can be viewed in the Item Subinventory table in the Plan Inputs work area.
Pros and Cons of Replenishment Planning at the Subinventory Level
These are the benefits of replenishment planning at the subinventory level:
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You have the flexibility to model locations such as retail stores or supply storerooms as organizations or subinventories on the basis of your business requirements.
You can use movement requests for inventory transfers between subinventories that are located close to each other. If the subinventories aren't close to each other, and you must create shipment documents, you can designate the inventory transfers as transfer orders.
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You can increase the overall efficiency of replenishment planning by forecasting demand, computing policy parameters, and calculating and releasing replenishment orders at the lowest nodes of your supply chain.
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You can reduce inventory costs and maintain optimal inventory levels at the lowest nodes of your supply chain.
However, if you plan replenishments at the subinventory level, the number of item-location combinations in your replenishment plan increases.