Create a Policy Assignment Set

This topic explains how you can create a policy assignment set in the Replenishment Planning work area.

To create the policy assignment set, you perform these steps:

Name the policy assignment set, and associate it with a segment group.
Add segments, and define the following for their item-location combinations:
1. Policy parameters
2. Default policies
3. Policy overrides
Define policy overrides for specific item-location combinations.

Name the Policy Assignment Set and Associate It with a Segment Group

Follow these steps to name the policy assignment set and associate it with a segment group:

On the Tasks panel tab, under Plan Inputs, click Manage Policy Assignment Sets.
The Manage Policy Assignment Sets page opens.
Under Search Results, on the toolbar, click Create.
The Create Policy Assignment Set dialog box opens.
Enter the name and description of the policy assignment set.
In Segment Group, select the segment group to which the policy assignment set should be attached.
Only those segment groups for which the segmentation process has been successfully run are available for selection. The segment groups that use the Customer or Demand Class dimension aren't displayed.
For information, see the topic titled Segmentation in Oracle Replenishment Planning.
Click Save.

Define Policy Parameters for a Segment

Follow these steps to define policy parameters for item-location combinations in a segment:

On the Segment-Level Policy Parameters Assignment tab, on the toolbar, click Add Row.
A row appears underneath the toolbar.
In the list in the Segment column, select a segment of the segment group.
On the Policy Parameters subtab, under Replenishment Policy, in Policy Type, select the policy type for the segment.
In Policy UOM, select the unit of measure (UOM) for the policy type.
The policy parameters are calculated on the basis of the UOM.
This list is set to Units and disabled if you select Periodic automatic replenishment in the Policy Type list.
In Fixed Order Cycle Calendar, select a calendar for the policy type.
This list is enabled when you select Fixed order cycle in the Policy Type list.
In PAR Time Period, enter the number of days for each period for periodic automatic replenishment (PAR).
This field is enabled when you select Periodic automatic replenishment in the Policy Type list.
In Number of Deliveries per Time Period, enter the number of days for each PAR period.
This field is enabled when you select Periodic automatic replenishment in the Policy Type list.
Under Safety Stock, in Safety Stock Calculation, select the method for safety stock calculation.
In Safety Stock Days of Cover, enter the number of days to be covered by the safety stock.
This field is enabled when you select Days of cover in the Safety Stock Calculation list.
In Days of Cover Basis, select whether the average daily demand should be calculated on the basis of the history or forecast.
Note: Preferably, for bidirectional supersession chains, select Forecast.
In Horizon for Average Daily Demand, enter the number of days of the history or forecast for which the daily demand is averaged.
In Extrapolation Percentage, enter the value by which the average demand should be increased.
This field is enabled when you select History in the Days of Cover Basis list.
In Target Service Level Percentage, enter the value for calculation of the safety stock.
This field is enabled when you select Service level-based in the Safety Stock Calculation list.
Under Maximum Quantity, in Maximum Quantity Calculation Method, select the method for calculation of the maximum quantity.
This list is enabled when you select Min-max planning or Fixed order cycle in the Policy Type list.
The list is set to Days of cover and disabled if you select ROP and order quantity, ROP and EQQ, or Periodic automatic replenishment in the Policy Type list.
In Maximum Quantity Days of Cover, enter the number of days for which the maximum quantity must be held.
This field is enabled when you select Min-max planning, Fixed order cycle, or Periodic automatic replenishment in the Policy Type list and Days of cover in the Maximum Quantity Calculation Method list.
Repeat Steps 1 through 15 for other segments.
Click Save.

Define Default Policies for a Segment

Follow these steps to define default policies for item-location combinations in a segment:

On the Segment-Level Policy Parameters Assignment tab, under the toolbar, select a segment.

On the Default Policy Parameters subtab, enter these values:

On the Policy Parameters Subtab, if You Selected	Then, on the Default Policy Parameters Subtab
Min-max planning in the Policy Type list	In Default Daily Demand, enter the default value for the daily demand. This value is used if history or forecast data is unavailable for the calculation of the average daily demand. This field is the only available one if you select Days of cover in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. The field is available for other selections in the list. In Default Order Quantity, enter the default value for the order quantity. This field is available if you select Minimum plus order quantity in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Default EOQ, enter the default economic order quantity (EOQ). If you specify this default, you can't specify the default standard cost, default carrying cost percentage, and default ordering cost. This field is available if you select Minimum plus EOQ in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Default Standard Cost, enter the default standard cost. This field is available if you select Minimum plus EOQ in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Default Carrying Cost Percentage, enter the default carrying cost percentage. This field is available if you select Minimum plus EOQ in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Default Ordering Cost, enter the default ordering cost. This field is available if you select Minimum plus EOQ in the Maximum Quantity Calculation Method list on the Policy Parameters subtab.
Fixed order cycle in the Policy Type list	In Default Daily Demand, enter the default value for the daily demand. This value is used if history or forecast data is unavailable for the calculation of the average daily demand. This field is the only available one if you select Days of cover in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. The field is available for other selections in the list. In Default Order Quantity, enter the default value for the order quantity. This field is available if you select Minimum plus order quantity in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Default EOQ, enter the default EOQ. If you specify this default, you can't specify the default standard cost, default carrying cost percentage, and default ordering cost. This field is available if you select Minimum plus EOQ in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Default Standard Cost, enter the default standard cost. This field is available if you select Minimum plus EOQ in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Default Carrying Cost Percentage, enter the default carrying cost percentage. This field is available if you select Minimum plus EOQ in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Default Ordering Cost, enter the default ordering cost. This field is available if you select Minimum plus EOQ in the Maximum Quantity Calculation Method list on the Policy Parameters subtab.
ROP and order quantity or ROP and EOQ in the Policy Type list	In Default Daily Demand, enter the default value for the daily demand. This value is used if history or forecast data is unavailable for the calculation of the average daily demand. In Default Order Quantity, enter the default value for the order quantity. This field is available if you select ROP and order quantity in the Policy Type list on the Policy Parameters subtab. In Default EOQ, enter the default EOQ. If you specify this default, you can't specify the default standard cost, default carrying cost percentage, and default ordering cost. This field is available if you select ROP and EOQ in the Policy Type list on the Policy Parameters subtab. In Default Standard Cost, enter the default standard cost. This field is available if you select ROP and EOQ in the Policy Type list on the Policy Parameters subtab. In Default Carrying Cost Percentage, enter the default carrying cost percentage. This field is available if you select ROP and EOQ in the Policy Type list on the Policy Parameters subtab. In Default Ordering Cost, enter the default ordering cost. This field is available if you select ROP and EOQ in the Policy Type list on the Policy Parameters subtab.
Periodic automatic replenishment in the Policy Type list	In Default Daily Demand, enter the default value for the daily demand. This value is used if history or forecast data is unavailable for the calculation of the average daily demand.

Repeat Steps 1 through 2 for other segments.
Click Save.

Define Policy Overrides for a Segment

Follow these steps to define policy overrides for item-location combinations in a segment:

On the Segment-Level Policy Parameters Assignment tab, under the toolbar, select a segment.

On the Policy Parameter Overrides subtab, enter these values:

On the Policy Parameters Subtab, if You Selected	Then, on the Policy Parameters Overrides Subtab
Min-max planning in the Policy Type list Fixed order cycle in the Policy Type list	In Safety Stock Override, enter the override value for the safety stock. For slow-moving items or items with intermittent demand, you can optionally enter 0 (zero) as the override value for the safety stock. In Order Quantity Override, enter the override value for the order quantity. This field is enabled when you select Minimum plus order quantity in the Maximum Quantity Calculation Method list on the Policy Parameters subtab. In Minimum Override, enter the override value for the minimum quantity. For slow-moving items or items with intermittent demand, you can optionally enter 0 (zero) as the override value for the minimum quantity. The override value for the minimum quantity must be greater than or equal to the override value for the safety stock. This field is enabled when you select Min-max planning in the Policy Type list on the Policy Parameters subtab. In EOQ Override, enter the override value for the EOQ. This field is enabled when you select Minimum plus EOQ in the Maximum Quantity Order Calculation Method list on the Policy Parameters subtab. In Maximum Override, enter the override value for the maximum quantity. The override value for the maximum quantity must be greater than or equal to the override values for the minimum quantity and safety stock.
ROP and order quantity or ROP and EOQ in the Policy Type list	In Safety Stock Override, enter the override value for the safety stock. For slow-moving items or items with intermittent demand, you can optionally enter 0 (zero) as the override value for the safety stock. In Order Quantity Override, enter the override value for the order quantity. This field is enabled when you select ROP and order quantity in the Policy Type list on the Policy Parameters subtab. In EOQ Override, enter the override value for the EOQ. This field is enabled when you select ROP and EOQ in the Policy Type list on the Policy Parameters subtab. In ROP Override, enter the override value for the reorder point (ROP). The override value for the ROP must be greater than or equal to the override value for the safety stock.
Periodic automatic replenishment in the Policy Type list	In Safety Stock Override, enter the override value for the safety stock. For slow-moving items or items with intermittent demand, you can optionally enter 0 (zero) as the override value for the safety stock. In PAR Level Override, enter the override value for the PAR level. The override value for the PAR level must be less than or equal to the override value for the PAR maximum quantity and greater than or equal to the override value for the safety stock. In PAR Maximum Quantity Override, enter the override value for the PAR maximum quantity. The override value for the PAR maximum quantity must be greater than or equal to the override values for the PAR level and safety stock.

Repeat Steps 1 through 2 for other segments.
Click Save.

Define Policy Overrides for Item-Location Combinations

Follow these steps to define policy overrides for individual item-location combinations in the segment group:

On the Item-Location Level Policy Overrides tab, on the toolbar, click Add Row.
A row appears under the column headings.
In the list in the Item column, select an item of the segment group.
In the list in the Location column, select a location for the item.
In the list in the Policy Type column, select a policy type for the item-location combination.
In the list in the Policy UOM column, select the UOM for the policy type.
When the policy type is periodic automatic replenishment, this list is disabled and set to Units.

Enter these values:

In the List in the Policy Type Column, if You Selected	Then
Min-max planning Fixed order cycle	In the field in the Safety Stock Override column, enter the override value for the safety stock. For a slow-moving item or an item with intermittent demand, you can optionally enter 0 (zero) as the override value for the safety stock. In the field in the Minimum Override column, enter the override value for the minimum quantity. For a slow-moving item or an item with intermittent demand, you can optionally enter 0 (zero) as the override value for the minimum quantity. The override value for the minimum quantity must be greater than or equal to the override value for the safety stock. This field is enabled when you select min-max planning as the policy type. In the field in the Maximum Override column, enter the override value for the maximum quantity. The override value for the maximum quantity must be greater than or equal to the override values for the minimum quantity and safety stock. In the list in the Fixed Order Cycle Calendar column, select a calendar for the policy type. This list is enabled when you select fixed order cycle as the policy type.
ROP and order quantity ROP and EOQ	In the field in the Safety Stock Override column, enter the override value for the safety stock. For a slow-moving item or an item with intermittent demand, you can optionally enter 0 (zero) as the override value for the safety stock. In the field in the ROP Override column, enter the override value for the ROP. The override value for the ROP override must be greater than or equal to the override value for the safety stock. In the field in the Order Quantity Override column, enter the override value for the order quantity. This field is enabled when you select ROP and order quantity as the policy type. In the field in the EOQ Override column, enter the override value for the EOQ. This field is enabled when you select ROP and EOQ as the policy type.
Periodic automatic replenishment	In the field in the Safety Stock Override column, enter the override value for the safety stock. For a slow-moving item or an item with intermittent demand, you can optionally enter 0 (zero) as the override value for the safety stock. In the field in the PAR Level Override column, enter the override value for the PAR level. The override value for the PAR level must be less than or equal to the override value for the PAR maximum quantity and greater than or equal to the override value for the safety stock. In the field in the PAR Maximum Quantity Override column, enter the override value for the PAR maximum quantity. The override value for the PAR maximum quantity must be greater than or equal to the override values for the PAR level and the safety stock.

Repeat Steps 1 through 6 for other item-location combinations.
Click Save and Close.