5Supply Network Model

This chapter contains the following:

Use the Maintain Supply Network Model page to view your collected data that includes details of organizations, customers, suppliers, carriers, and interlocation shipping networks. To open the Maintain Network Model page, navigate to a Supply Chain Planning work area. Click the Tasks panel tab and then select the Maintain Supply Network Model link.

You use organizations to represent your business facilities or functions. Typically, if your business has a single physical facility that performs two different functions, then you model it as two organizations. For example, you have one facility that's a manufacturing plant and a distribution center. You can model them as two separate organizations. Additionally, if your business has one function located in two separate physical facilities, you can model those as one organization. If you modeled your facilities as one organization, you can create separate subinventories to represent inventory for each facility.

Review the Collected Data

Based on your search results, use the Organization tab to do the following:

  • Review organizations, including the time zones associated with the organizations, for all source systems.

  • Create customer and supplier associations to organizations. This is used when creating the buy-sell transfers.

  • Select the drop ship validation organization. For each source system, you can select only one organization as the drop ship validation organization. You can also assign a calendar to a drop ship validation organization.

  • Set past due parameters for each organization, which include:

    • Past due forecast days

    • Past due sales order days

    • Past due supply days

  • Set up organizations for subinventory-level replenishment planning by selecting Yes under Plan Subinventories.

Use the Customers and Supplier tabs to review collected data and assign time zones to customer sites and supplier sites. If the customer site or supplier site doesn't have an associated time zone, then the customer site or supplier site is assumed to be in the same time zone as the organization that's associated with the demand or supply.

Use the Carriers and Interlocation Shipping Networks tabs to review collected data on carriers, shipping methods, and transit times.

Manage Organization Groups

Click the Manage Organization Groups button on the Organizations tab to create and manage organization groups. Organization groups are managed within the source systems and are used to limit the net change data collection from a source system to specific organizations.

Enable Inventory Organization Tracking by Project

This parameter appears on the Maintain Supply Network Model page only when your organization is enabled for project-specific supply planning.

The Project Enabled parameter governs whether your inventory organization is enabled for inventory tracking by project. The value for this parameter can be Yes or No for an organization.

When the parameter value is Yes for an organization, the data collection process collects project-and-task-specific supplies and demands, and the project-specific planning releases planned orders to the organization. The value for this parameter is No for a supplier-modeled organization or a contract manufacturing organization.

Buy and Sell Transfers

You can conduct material transfers between two organizations in a single Oracle Fusion source system by using the purchase order and sales order documents. The sales order at the source organization is used to ship the transfer. The purchase order at the destination organization is used to receive the transfer.

In the supply network model for the purchase order supply at the receiver organization:

  • Define the supplier to source organization relationship and for the sales order demand at the shipping organization.

  • Define the customer to destination organization relationship.

To model an organization as a supplier, update the Supplier and Supplier Site columns of the associated organization.

To model an organization as a customer, update Customer and Customer Site columns of the associated organization.

Forecast and Consume Internal Orders

To forecast and consume internal orders, assign a customer and customer site to the organization that's the destination of the transfers. Use a customer name that makes sense for the destination organization, such as M1 Transfers. After you assign a customer and customer site on the Organizations tab, select the Use Customer and Customer Site for Interorganization Transfers check box for the organization.

Note: To complete the setup to forecast and consume internal orders, you must also do the following:
  • On the Collect Planning Data page, Parameters tab, Demand Planning Data subtab, select the Organization - Consumption Inventory Transactions to Include check box.

  • In the plan options for your plan, select the Include transfer orders check box in the Demand: Advanced Options dialog box. This check box is only available from a Demand Management, Planning Central, or Demand and Supply Planning work area.

Publish Order Forecasts to Suppliers

You publish order forecasts to your suppliers to enable them to commit supply and indicate their ability to meet the demand. Collaborating with suppliers by publishing an order forecast enables:

  • Suppliers to send supply commits to the Original Equipment Manufacturer (OEM)

  • OEMs to receive supply commits as supplier capacity

Collaboration enables suppliers to get an insight into the demand that the OEMs forecast and plan supply chain activities to meet the demand. Additionally, collaboration with suppliers enables OEMs to plan their downstream activities in the supply chain more efficiently.

Use the Collaboration Basis column in the Suppliers tab on the Maintain Supply Network Model page to indicate the basis on which you want to publish the order forecast to your suppliers. You can choose to publish the order forecast at the supplier and supplier site levels based on one of the following dates:

  • Start date: Suppliers use the start date to know when they need to start manufacturing an order to fulfill the order on time

  • Dock date: Suppliers use the dock date to know the date by which they need to fulfill the order

How You Define the Approved Supplier List for Supply Chain Planning

An approved supplier list (ASL) is a repository of information that links items to the suppliers and supplier sites that provide them to either a specific ship-to organization or the entire enterprise. An ASL can be global or specific to an organization; however, supply planning only recognizes global ASLs.

To determine the supplier and supplier sites for items, the planning process collects ASLs from the CSV file upload, Oracle Fusion Procurement, or both.

  • Use the Load Planning Data from Flat Files process to load data directly into the Planning ASL using the Approved Supplier List CSV template (ScpApprovedSupplierListImportTemplate.xlsm).

  • You can also define some ASL attributes in Oracle Fusion Procurement and then upload a CSV file that defines the attributes you want supply planning to use. For example, define the following item-to-supplier relationships and order modifiers in Oracle Fusion Procurement:

    • Supplier

    • Supplier site

    • Minimum order quantity

    • Fixed lot multiple

To upload additional attributes for supply planning to use, you can create and collect the ASL from purchasing. You can then use the CSV file upload to define additional attributes such as the following:

  • Item-supplier lead time

  • Supplier capacity calendar

  • Daily supplier capacity

Use a supplier site calendar to measure processing lead times for purchases from a supplier site. You can associate a Supply Chain Planning calendar with a supplier site to use for all items sourced from that supplier site. The calendar is in the collected planning data.

You can associate a calendar with supplier sites to use if there is no calendar defined through the Approved Supplier List upload for a supplier site-item combination. From a Supply Chain Planning work area, navigate to the Maintain Supply Network Model page, Suppliers tab. In the Supplier Site Calendar column for a supplier, select a calendar name from the list of collected calendars. You can only edit this field if the supplier row contains a supplier site.

When you run the plan, the planning process uses the selected calendar on the Maintain Supply Network Mode page if the approved supplier list calendar for the supplier site-item is blank. If the approved supplier list calendar for the supplier site-item is blank, and you do not associate a calendar with a supplier site on the Maintain Supply Network Model page, then the planning process uses the 24/7 calendar.

You use assignment sets in a Supply Chain Planning work area to link sourcing rules and bills of distribution to items. Using sourcing rules, bills of distribution, and assignment sets together, you can specify how material is supplied, manufactured, and transferred across a supply chain.

Note: This topic is applicable to only the Planning Central, Sales and Operations Planning, Supply Planning, Demand and Supply Planning, and Replenishment Planning work areas.

When you create sourcing rules and bills of distribution, you create descriptions of the means by which you can replenish items. However, items aren't specified anywhere on the definition forms, and so a defined sourcing rule or bill of distribution can later be assigned to any item or group of items. Use assignment sets to associate specific items, categories, or organizations with the sourcing rules and bills of distribution.

You must use sourcing to describe the supply chain to the planning process. Use the following three structures to do so:

  • Sourcing rules

  • Bills of distribution

  • Assignment sets

Sourcing Rules

Sourcing rules and bills of distribution determine the movement of material between organizations. These organizations include supplier, manufacturing, and distribution facilities. You can navigate to a Supply Chain Planning work area and click Manage Sourcing Rules from the Tasks drawer to create or search for an existing sourcing rule.

The three types of sources are:

  • Transfer From: Interorganization shipping functionality accomplishes the transfer between internal organizations. Enter the source organization in the Organization column.

  • Make At: The item is manufactured at this internal organization. Enter the manufacturing organization in the Organization column.

    Oracle Fusion Replenishment Planning doesn't support make at sourcing rules.

  • Buy From: Purchase the item from an external enterprise. Data entry in the Supplier and Supplier Site columns is enabled, and the Organization column is disabled.

Allocation Percent and Rank: The total allocation percentage for all sources within a rank must add up to 100 percent. The sources with the highest rank (lowest numeric value) get the highest priority in allocations. Planning Central and Replenishment Planning only consider sources of rank one. Replenishment Planning also doesn't support sourcing splits.

Bills of Distribution

When material flows through three or more organizations, bills of distribution describe supply chain links more efficiently than sourcing rules. However, any relationship that can be described by bills of distribution can also be described by a set of sourcing rules. Typically, most users use sourcing rules rather than bills of distribution. You can navigate to a Supply Chain Planning work area and click Manage Bills of Distribution from the Tasks drawer to create or search for existing bills of distribution.

Replenishment Planning supports bills of distribution of only rank one and doesn't support split bills of distribution.

Note: Despite the name, bills of distribution don't describe an outward bound or push type of sourcing relationship. Both sourcing rules and bills of distribution are used only to pull material from sources to destinations.

Assignment Sets

You use assignment sets to link sourcing rules and bills of distribution to items. In other words, you use assignment sets to link sourcing rules, items and supply nodes. The assignment set creates the sourcing and transfer links between organizations for each item involved in a supply chain plan. Alternative supply chains can be modeled by creating alternative assignment sets. You can navigate to a Supply Chain Planning work area and click Manage Assignment Sets from the Tasks drawer to create or search for existing assignment sets.

Sourcing Assignment Hierarchy

The planning process uses a sourcing assignment hierarchy to determine the actual source of a specific item. You can assign replenishment sources at the following levels. Specific sourcing assignments override general assignment levels.

The following table lists the supply sourcing hierarchy.

Rank Item or Category Applies to

1

Item - Organization

  1. Sourcing rule

  2. Item-organization attributes (Make or Buy)

2

Category - Organization

N/A

3

Item

  1. Bill of distribution

  2. Global sourcing rule

4

Category

  1. Bill of distribution

  2. Global sourcing rule

5

Organization

  1. Bill of distribution

  2. Global sourcing rule

  3. Item-master attributes (Make or Buy)

6

Global

  1. Bill of distribution

  2. Global sourcing rule

Caution: To use the category in the assignment set, you must set the profile option catalog for sourcing assignments to select the catalog that's used for sourcing. Typically, the planning catalog is used. However, any collected catalog can be selected in the profile option. If the profile option is blank, then the category isn't available in the assignment hierarchy.

When you source supplies for sales orders and forecasts (independent demands), order promising and planning use the more detailed hierarchy. This hierarchy includes the demand class, customer, and customer site which are dimensions of independent demand.

The following table lists the demand sourcing hierarchy.

Rank Item or Category

1

Item - Customer / customer site

2

Item - Customer

3

Item - Demand Class

4

Item - Region

5

Category - Customer / customer site

6

Category - Customer

7

Category - Demand Class

8

Item

9

Category - Region

10

Category

11

Customer / customer site

12

Customer

13

Demand Class

14

Region

15

Global

Using the demand sourcing hierarchy, if a demand line includes a value for demand class, then if no sourcing rule exists for Item - Customer / customer site or Item - Customer, but a rule exists for Item-Demand Class, then that rule is used to determine supply sources for the demand line.

When using the sourcing hierarchy, if two rules conflict, the more granular rule is used. To verify which source is used for an assignment set, from within the set, click the View Sourcing button after entering the following required parameters:

  • Assignment set

  • Organization

  • Item

  • Date

The dialog box displays which assignments apply to the item-organization-date that you selected. If multiple rules apply, then the Active Rule is marked in the form.

You create assignment sets to assign sourcing rules and bills of distribution you defined to specific items, customers, organizations, categories, demand classes, or regions. For each sourcing assignment within an assignment set, you also select an applicable assignment level to implement the scope of the sourcing rule or bill of distribution.

Always plan before you create your assignment sets. Understand the different assignment levels, their level of granularity, and how an assignment level overrides another assignment level based on their level of granularity. You can get conceptual information about these aspects in the Sourcing Rules, Bills of Distribution, and Assignment Sets section of the guide.

Use these steps to create your assignment set.

  1. From a Supply Chain Planning work area, click Manage Assignment Sets in the Tasks panel.

  2. On the Manage Assignment Sets page, click the Create icon in the Search Results section.

  3. On the Create Assignment Set page, provide a name and description for the assignment set.

  4. Select a catalog to use the categories associated with that catalog in your assignment set.

  5. To assign sourcing rules or bills of distribution at the subinventory level for planning, select Enable for subinventory-level planning.

  6. In the Sourcing Assignments section, click the Add Row icon and specify these attributes.

    • Select the assignment level and specify the value for the attributes applicable to the selected assignment level.

    • Select the sourcing type. The sourcing type can be a sourcing rule or a bill of distribution.

    • Select the sourcing rule or bill of distribution.

  7. Click Save to save this assignment set or Save and Create Another to save this assignment set and create another assignment set.

Specify Catalogs for Assignment Sets

A catalog is a collection of categories used to classify items that you can organize into a hierarchy. A catalog can have a flat or single-level structure of categories or you can have a hierarchical structure of categories.

When creating assignment sets, you must specify a catalog for each assignment set. You associate an assignment set with a catalog to:

  • Use the categories associated to that catalog in your assignment set.

  • Link the sourcing assignments to the categories associated with the catalog.

If you do not specify a catalog for an assignment set, the assignment set uses the Catalog for Sourcing Assignments (MSC_SRC_ASSIGNMENT_CATALOG) profile option as the default catalog.

To create an assignment set and specify a catalog, use the Manage Assignment Sets task in one of the Supply Chain Planning work areas.

Note: Assignment sets are not applicable to the Demand Management work area.

Create sourcing rules or bills of distribution to determine the acceptable fulfillment locations for replenishing items. In a sourcing rule or bill of distribution, you only specify how to replenish items. You don't specify which items to replenish. To do that, you create assignment sets.

Always plan before you create your sourcing rules or bills of distribution to avoid managing too many rules. Here's what you can do.

  • Look at your assignment set requirements to determine how your sourcing rules are applicable to different items.

  • Design the combination of global and local sourcing rules you must implement in your assignment set. Define your global sourcing rule in such a way that you don't have to create too many local sourcing rules to address exceptions to the global sourcing rule.

  • Collect the reference data, such as organizations, items, and so on that you require to create your sourcing rules. Refer to the Planning Data Collection section for details. For order promising, you also must ensure that the collected data is up to date on the order promising server.

You can get conceptual information about the different aspects to consider in your rule in the Sourcing Rules, Bills of Distribution, and Assignment Sets section.

Create Sourcing Rules

Use these steps to create a sourcing rule:

  1. In a Supply Chain Planning work area, click Manage Sourcing Rules in the Tasks panel.

  2. On the Manage Sourcing Rules page, click the Create icon in the Search Results section.

  3. On the Create Sourcing Rule page, provide a name and description for the sourcing rule.

  4. To define sourcing at the subinventory level for planning, select Enable for subinventory-level planning.

    Note: When you select this check box, the Create Movement Requests field is available under Sources. For a local sourcing rule of the transfer from type between two subinventories, you can use this field to release plan recommendations as movement requests.
  5. Select the organization assignment type for your sourcing rule. You can create a global sourcing rule or a local sourcing rule. When you create a local sourcing rule, specify the organization to which the rule is applicable.

  6. In the Sourcing Rule Effective Dates section, click the Add Row icon and specify the effective dates for the sourcing rule.

  7. In the Sources section, click the Add Row icon and specify these attributes.

    • Select the source type. The source type can be Transfer from, Make at, or Buy from depending on the organization assignment type you selected for the rule.

      Replenishment plans support sourcing rules of only the transfer from or buy from type.

    • Specify the values for the attributes applicable to the selected source type. You can also set up an option-specific sourcing exclusion for the Transfer from or Make at source type.

  8. Click Save to save this rule or Save and Create Another to save this rule and create another sourcing rule.

Create Bills of Distribution

Use these steps to create your bills of distribution:

  1. From a Supply Chain Planning work area, click Manage Bills of Distribution in the Tasks panel.

  2. On the Manage Bills of Distribution page, click the Create icon in the Search Results section.

  3. On the Create Bill of Distribution page, provide a name and description for the bill of distribution.

  4. To define sourcing at the subinventory level for planning, select Enable for subinventory-level planning.

    Note: When you select this check box, the Create Movement Requests field is available under Sources. For a bill of distribution of the transfer from type between two subinventories, you can use this field to release plan recommendations as movement requests.
  5. In the Destinations section, click the Add Row icon and specify the effective dates and the organization.

  6. In the Sources section, click the Add Row icon and specify these attributes.

    • Select the type for the bill of distribution. The type can be Transfer from, Make at, or Buy from.

      Replenishment plans support bills of distribution of only the transfer from or buy from type.

    • Specify the values for the attributes applicable to the selected type. You can also set up an option-specific sourcing exclusion for the Transfer from or Make at type.

  7. Click Save to save this rule or Save and Create Another to save this bill of distribution and create another bill of distribution.

You can replicate sourcing rules and assignment set data from your supply chain planning cloud instance to another instance or application without manually reentering data. For example, you can replicate the sourcing rules in your supply chain planning cloud production instance into a reporting system or a test instance.

Use the Export Supply Chain Planning Data scheduled process job to extract sourcing rules and assignment set data into a comma-delimited values (CSV) file format. The generated file is in the standard file-based import (FBDI) file format that you can then use to do the following:

  • Check for missing or incorrect sourcing rules or sourcing assignments. For example, does a particular item-organization have a valid sourcing assignment?

  • Replicate and then modify existing sourcing rules and assignment sets in a spreadsheet. You can then upload the new setups into another instance or application to create new sourcing rule and assignment set setups.

  • Copy the sourcing rule and assignment set setups from one instance to another instance or application, such as from a test instance to a production instance.

The format of the CSV files, including the header content, is the same as the format of the corresponding files in the source instance. This enables you to import the same data directly into another production or test instance. Use the Load Planning Data from Files process to upload your imported files to staging tables.

The following steps show you how to export sourcing rules and assignment set data to a CSV file:

  1. In the Scheduled Processes work area, click the Schedule New Process button on the Overview page.

  2. In the Schedule New Process dialog box, search for and select Export Supply Chain Planning Data and then click OK.

  3. In the Process Details dialog box, Basic Options section, select Sourcing Rules and Assignment Sets from the Entities to Export drop down list.

  4. Optionally, click the Filter button to filter your export with specific assignment sets. If you don't select any filters, then the process exports all sourcing rules and assignment sets.

  5. In the Process Details dialog box, click the Submit button to submit the scheduled process job.

    After you submit your job, you will receive a confirmation with a confirmation number. The planning process appends the confirmation number to the extracted CSV file names, such as AssignmentSets_65960.csv and SourcingRules_65960.csv, where 65960 is the confirmation number.

Item Attributes and Order Modifiers for Supply Planning

Items represent the material that you use in manufacturing and distribution processes and store in inventory. Item attributes specify properties of each item. You set the item attributes for supply planning through the Product Information Management work area.

Use these steps to set item organization attributes for supply planning:

  1. Navigate to the Product Information Management work area and open the Manage Items task from the Tasks drawer.

  2. Search for your items.

  3. Select an item and edit attributes on the specification tab. You can locate the Planning attributes under the planning section.

This table lists the attributes related to supply planning.

Item Attribute Item Structure

Item Overview

Unit of Measure

Manufacturing

Structure Item Type

Manufacturing

Base Model

Manufacturing

Autocreated Configuration

Manufacturing

Assemble to Order

Manufacturing

Build in WIP

Manufacturing

Supply Type

Inventory

Inventory Item

Inventory

Stockable

Inventory

Transactable

Order Management

Customer Orders Enabled

Order Management

Transfer Orders Enabled

Planning

Make or Buy

Planning

Safety Stock Method

Planning

Planner Code

Planning

Planning Method

Planning

Forecast Control

Planning

Time Fences: Demand

Planning

Time Fences: Release

Planning

Time Fences: Planning

Planning

Cost

Planning

Carrying Percentage

Planning

Shrinkage Rate

Planning

Acceptable Early Days

Planning

Lead Times: Processing

Planning

Lead Times: Preprocessing

Planning

Lead Times: Postprocessing

Planning

Lead Times: Fixed

Planning

Lead Times: Variable

Planning

Minimum Order Quantity

Planning

Maximum Order Quantity

Planning

Fixed Order Quantity

Planning

Fixed Lot Multiplier

Planning

Fixed Days Supply

Planning

Rounding

Purchasing

Purchasable

Purchasing

Approved Supplier List

You can use these attributes for specific purposes:

  • Make or Buy: This attribute is used by default if no sourcing rule is present.

  • Planning Method: Use either MRP planned or MPS planned as the planning method.

  • Time Fences: All are used by planning.

  • Buy items use the processing lead times. Make items use fixed and variable.

  • Make, buy, transfer all use preprocessing lead time. Buy and transfer use post processing lead time.

  • Acceptable Early Days is used if you need to reschedule existing supplies. If the supply due date is within the acceptable early days, then no reschedule out recommendation is issued.

Order Modifiers

You use order modifiers to obtain planned orders that you are more likely to use in your environment. For example, you may purchase an item from a supplier who only provides it on pallets of quantity 100. If you are short in some quantity, say 72, you can set the planned order quantity to 100 instead of 72 to support your requirement. You can't apply order modifiers to phantoms.

These are the order modifiers that you can use:

  • Minimum Order Quantity

  • Maximum Order Quantity

  • Fixed Order Quantity

  • Fixed Lot Multiplier

  • Fixed Days Supply

  • Rounding

Material planning uses a priority sequence (precedence) of order modifiers. It applies certain order modifiers before others and rules out certain order modifiers based on its using certain other order modifiers. The order modifier precedence is:

  • Fixed Days Supply: One planned order for this item must cover all the shortages for the number of days specified in the value. For example, if the net requirements are 50 on Monday, 100 on Wednesday, 70 on Thursday, and you have set fixed days supply to five, the planning process creates one planned order, with quantity of 220 (50 + 100 + 70) and due on Monday. The period start dates are not fixed. In the example, the next period of five days would not always start on the following Monday but would start on the next day after Friday that has net requirements. You can adjust the fixed days supply value using the other order modifiers. Therefore, the next period of five days could be the following Wednesday through the second Tuesday.

  • Fixed Order Quantity: You must always set the planned order quantity with this value. For example, if the net requirements are one and you have set fixed order quantity to 200, the planning process creates one planned order with quantity of 200. If set, the planning process skips to the modifier Round order quantities.

  • Fixed Lot Multiplier: You must always have the planned order quantity with this value. For example, if the net requirements are 400 and you have set fixed lot multiple to 150, the planning process creates one planned order with quantity of 450.

  • Minimum Order Quantity: The planned order quantity may never be less than this value. For example, if the net requirements are 100 and you have set minimum order quantity to 150, the planning process creates one planned order with quantity of 150. If set, the planning process skips to the modifier Round order quantities.

  • Maximum Order Quantity: One planned order for this item may not have a quantity more than this value. For example, if the net requirements are 200 and you have set maximum order quantity to 150, the planning process creates two planned orders, one with quantity of 150 and the other with quantity of 50.

  • Rounding: The planned order quantity must always be a whole number; the planning process always rounds fractional quantities up to the next highest whole number. For example, if the net requirements are 99.2 and you have selected round order quantities, the planning process creates one planned order with quantity of 100.