PAR Policies
This topic provides information about periodic automatic replenishment (PAR) policies for replenishment plans.
Note these points about the PAR policies that you can compute in Oracle Replenishment Planning:
- You can use PAR policies for subinventories for which you don't need to track quantities and for which you must compute the best inventory levels for meeting demand between successive deliveries.
- The computed PAR policies are the PAR level and PAR maximum quantity. For your PAR requirements, using a policy assignment set, you can set the policy parameters, default policies, and policy overrides at the segment level and policy overrides at the item-location level. You can also use the file-based data import (FBDI) template named Supply Chain Planning Item Policy Overrides (ScpItemPolicyOverridesImportTemplate.xlsm) to override the PAR policies for item-subinventory combinations.
- After the PAR policies are computed in Replenishment Planning, you must run the
scheduled process named Publish PAR Policies to move the
policies to Oracle Fusion Cloud Inventory Management. After the scheduled process is
run, you can see the PAR level and PAR maximum quantity on the Manage Item
Subinventories page that's available from the Manage Subinventories page in the
Setup and Maintenance work area.Note: The scheduled process publishes PAR policies for only item-subinventory combinations. Also, the PAR location checkbox must be selected for the subinventories on the Edit Subinventory page that's available from the Manage Subinventories page in the Setup and Maintenance work area.
For the item-subinventory combinations for which the policy type is PAR, after the replenishment plan is run, a message is logged to inform you that replenishments haven't been created for the corresponding segments. This message is also available on the Review Plan Messages page. No further processing is done for these item-subinventory combinations in Replenishment Planning.
For the item-subinventory combinations for which the policy type is PAR, the replenishments are calculated in Oracle Inventory Management.
- You can simulate changes to the safety stock, PAR levels, and PAR maximum quantities.
- You can also compare current and previous values for PAR policies using the Manage
Policy Comparison table.
If you change the suggested PAR levels and suggested PAR maximum quantities, you must click and then in the table.
- The scheduled process named Publish PAR Policies can be
submitted for all replenishment plans for which the source system is Fusion, the
Calculate policy parameters checkbox is selected on the
Plan Options page, and the status is Completed or Warning. The available segments
for selection are those that are within the plan's scope and for which the policy
type is periodic automatic replenishment in the policy assignment set.
If you submit the scheduled process without specifying the segment, then the scheduled process is run for all segments within the plan's scope and for which the policy type is periodic automatic replenishment.
- If you're using a user-defined measure catalog for your replenishment plan, and
you've specified the PAR policy type for segments in your policy assignment set,
ensure that the PAR measures are in the measure catalog. Otherwise, the following
will happen:
- If the replenishment plan isn't being used for policy comparisons, policies won't be calculated for the affected segments. A message will be logged in this regard and also displayed on the Review Plan Messages page.
- If the replenishment plan is being used for policy comparisons, the plan run will end. A message will be logged in this regard and also displayed on the Review Plan Messages page.
The predefined measures for PAR policies are listed later in this topic.
Measures for PAR Policies
These predefined measures for PAR policies are available in the Default Replenishment Planning Catalog:
| Name | Description |
|---|---|
| Adjusted PAR Level | PAR level in units as adjusted by the user. |
| Adjusted PAR Maximum Quantity | PAR maximum quantity in units as adjusted by the user. |
| Final PAR Level | Final PAR level in units after the user overrides are considered. |
| Final PAR Maximum Quantity | Final maximum quantity in units for PAR after user overrides are considered. |
| PAR Level | PAR level in units. |
| PAR Level Deviation Percentage | Percentage of deviation between the values of the Previous PAR Level and Suggested PAR Level measures |
| PAR Maximum Quantity | PAR maximum quantity in units. |
| PAR Maximum Quantity Deviation Percentage | Percentage of deviation between the values of the Previous PAR Maximum Quantity and Suggested PAR Maximum Quantity measures. |
| Previous PAR Level | Previous PAR level in units. |
| Previous PAR Level Type | Indicator specifying whether the previous value of the PAR Level measure was calculated or adjusted. |
| Previous PAR Maximum Quantity | Previous PAR maximum quantity in units. |
| Previous PAR Maximum Quantity Type | Indicator specifying whether the previous value of the PAR Maximum Quantity measure was calculated or adjusted. |
| Suggested PAR Level | Suggested PAR level in units. |
| Suggested PAR Maximum Quantity | Suggested PAR maximum quantity in units. |
Example for PAR Policies
For your policy assignment set, assume the following:
- The average daily demand is 3.33.
For information about how the average daily demand is calculated, see the topic titled How Average Daily Demand Is Calculated in Oracle Replenishment Planning.
- The safety stock level is 40.
For information about how the safety stock is calculated, see the topic titled How Safety Stock Is Calculated in Oracle Replenishment Planning.
- The PAR time period is 30.
- The number of deliveries in a time period is 4.
- The maximum quantity days of cover is 14.
The formula for calculating the average inventory usage in the time period is as follows: Average Daily Demand x PAR Time Period
Therefore, in our example, the average inventory usage in the time period is 100 (3.33 x 30).
The formula for calculating the PAR level is as follows: (Average Inventory Usage in Time Period + Safety Stock)/Number of Deliveries in Time Period
Therefore, in our example, the PAR level is 35 ((100 + 40)/4).
The formula for calculating the PAR maximum quantity is as follows: Average Daily Demand x Maximum Quantity Days of Cover
Therefore, in our example, the PAR maximum quantity is 47 (3.33 x 14).
The final values for the PAR level and PAR maximum quantity are rounded to integers.