Circular Transfer Orders
Use circular transfer orders to rebalance your inventory at both the source and destination organizations. In Oracle Planning Central and Oracle Supply Planning, 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:
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Late Supply Pegged to Forecast
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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.