oracle inventory shital

Oracle EBS Training Oracle EBS Training OnOn

Inventory ModuleInventory Module

-Shital Kendre

KTCS,Pune

Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Setup

Creating and Maintaining Items

Inventory Controls

Inventory Transactions

Inventory Accuracy Control

Inventory Planning

AgendaAgenda

Introduction to Oracle Inventory management

What is Inventory?

Stocking ,tracking and maintaining the level of different items like Raw

material, Finished Goods, etc in an organization.

Introduction to Oracle inventory managementIntroduction to Oracle inventory management

Oracle Inventory enables users to satisfy a company’s business needs, area such as:

Defining part numbers

Modeling organization structures

Tracking perpetual inventory

Maintaining accurate on-hand balances

Planning material replenishments

Forecasting anticipated demand

Inventory management

Inventory Integration with other modules

OracleOraclePurchasingPurchasing

Oracle Oracle Inventory Inventory

ExternalSystems

OracleOracleWIPWIP

Oracle CostOracle CostManagementManagement

OracleOracleEngineeringEngineering

Oracle BillsOracle Billsof Materialof Material

Oracle Order Oracle Order ManagementManagement

Oracle MasterOracle MasterScheduling/MRPScheduling/MRP

OracleOracleFlow ManufacturingFlow Manufacturing

OracleOracleShippingShipping

OracleOracleProject Project

ManufacturingManufacturing

Item

Item

An item is a part or service that are purchased, sold, planned, manufactured, stocked, distributed, or prototyped .

Item Statuses and Attributes

Status attributes are item attributes that enable key functionality for each item. An item status is defined by selecting the value check boxes for the status attributes.Both status attributes and item status can be controlled at the item level or organization levels.


Unit of Measure A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item.

For example, “each” is a unit of measure that used to specify the number of units of an item. A unit of measure class is a group of units of measure with similar characteristics. For example,

“weight” can be a unit of measure class with units of measure such as kilogram, gram, pound, and ounce.

A unit of measure conversion is a mathematical relationship between two different units of measure.

Organization Calendar workday calendar must be defined in Inventory if the following are to be performed :

inventory forecasting ,reorder-point planning, available-to-promise analysis or cycle counting.

Inventory automatically generates a workday pattern (the base calendar) that includes all days, including non-workdays, between the start and end dates specified.

workday exceptions can be assigned to the base calendar to denote holidays, schedule maintenance, or overtime.


Categories and Category Sets

Categories are logical groupings of items that have similar characteristics.

A category set is a distinct category grouping scheme and consists of categories.


Finished GoodFinished Good

SubassemblySubassembly

HardwareHardware

SoftwareSoftware

PCPC

OtherOther

Category Grouping

Inventory Category Set Purchasing Category Set Craig Category Set


Inventory Transaction

A transaction is an item movement into, within, or out of inventory. A transaction changes the quantity, location, or cost of an item. Inventory supports a number of predefined and user-defined transaction types.

Every material movement has a corresponding set of accounting transactions that Oracle Inventory automatically generates.

All transactions validate the various controls (revision, locator, lot number, and serial number) enabled for items.


Introduction to Oracle inventory

Material FlowMaterial Flow Business FlowBusiness Flow

Receive GoodsReceive Goods

Ship GoodsShip Goods

Move GoodsMove Goods

MRPMRP Order EntryOrder Entry

PurchasingPurchasing

InventoryInventory

WIPWIP

Inventory Transaction



Inventory Setup


Inventory Controls



Inventory Planning

AgendaAgenda


The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.

Inventory Enterprise StructureInventory Enterprise Structure


LELELELE

Set of Books

IOIO

OUOUOUOU

IOIOIOIO

OUOU

IOIOIOIO IOIO

BG

Organization Structure

Inventory Enterprise Structure Multi-org

Multi-Org is a key component that provides secure access to the different organizations of the enterprise supports multiple organizations of the enterprise structure in a single database.

Operating Unit is the primary organization unit through which user secures transaction data, but also creates processes and reports on financial applications data. An Operating Unit can be used to model an autonomous business unit that performs one or more business activities and creates transactions with financial impact.


Business Group This is an Organization that represents the

consolidated enterprise, a major division, or an operation company and has no accounting impact. The Business Group partitions Human Resources information and the Purchasing Approval Hierarchy. If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group.

OU

Set of Books

Legal Entity

Business Group

Inventory Organization

Inventory Enterprise StructureInventory Enterprise Structure Set of Books

Set of Books is the financial reporting entity that secures financial entries and account balances within the GL application. SOB will be based on 3C’s (Currency, Calendar, Chart of Accounts)

A Set of Books is the highest level that impacts accounting. A Set of Books is associated with a single Business Group, but multiple Sets of Books may be associated with a single Business Group

OU

Set of Books

Legal Entity

Business Group



GRE/Legal Entity

The Legal Entity represents a legal company for which the user prepares fiscal or tax reports.

Legal Entities are associated with a Set of Books. One or more Legal Entities may be associated with a single Set of Books, and multiple Legal Entities may be associated with a single Business Group.

OU

Set of Books

Legal Entity

Business Group


Inventory Enterprise Structure Operating Unit

An operating unit represents an organization that uses any Oracle subledger application, for example, Order Management, Payables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit.

Inventory Organizations An inventory organization is a facility in your enterprise where you store

and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time.

Inventory Organizations belong to an Operating Unit.

OU

Set of Books

Legal Entity

Business Group


Inventory Organization Structure


Inventory Organization Structure

Organization

Subinventories

Locators


Organizations– An inventory organization is a facility in your enterprise where you store and transact

your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time.

A physical entity such as a manufacturing facility, warehouse, distribution center, or a branch office.

A logical entity such as an item master organization, which you can use just to define items but no transactions. The item master organization is discussed in detail in the lesson titled “Defining and Maintaining Items Fundamentals.

Subinventory

Subinventories are unique physical or logical separations of material inventory, such as raw material inventory, finished goods inventory, or defective goods inventory. In Oracle Inventory, all material within an organization is held in a subinventory. Therefore, you must define at least one subinventory.

Locator

You use locators to identify physical areas where you store inventory items. Item quantities can be tracked by locator. Items can also be restricted to specific locators



Inventory Setup


Inventory Controls



Inventory Planning

Agenda

Inventory Setup

Organization Setup

Before using Oracle Inventory, one or more organizations need to be defined. Organizations represent distinct entities in a company and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices.

Organizations can be classified and connected to model the overall enterprise structure. The classifications include: Business Groups Legal Entities (LE) / Government Reporting Entities (GRE) Operating Units Inventory Organizations

Inventory Setup

Using an Item Master Organization

Item Master Organization is usually the first Inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. Items are entered in an item master organization and then assigned to be used in child organizations.

Child Organization is an inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master.

Inventory Setup

Organization Setup

Organization

Subinventory

Locator

Inventory Organizations are made up of one or more subinventories which can be made up of one

or more locators

Subinventory set up

A subinventory is a physical or logical grouping of inventory, such as raw material, finished

goods, defective material, or a freezer compartment.

The subinventory is the primary place where items are physically stocked. A subinventory must

be specified for every inventory transaction

Subinventories can be further divided into areas designated as locators.

Inventory Setup

Inventory Setup

Workday Calendar

Workday calendar can be defined both in Inventory and Bills of Material.

It defines which days are “ON” within an organization and which shifts are available to be worked. The

workday calendar is the Oracle term for a manufacturing calendar.

The workday calendar is separate from the Oracle General Ledger calendar.

Each organization references a workday calendar.

Inventory Setup

Units of Measure

Units of measure (UOM) are defined for tracking/moving/storing & counting items. Each item

defined in Inventory must have a primary UOM. Each transaction performed in Inventory must have

a UOM associated with the transaction quantity and a conversion defined back to the primary UOM.

Multiple related UOMs are grouped together in a class with a base unit of measure Inventory

uses the base UOM to perform conversions between units of measure in each class and between

two different unit of measure classes.

A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, “each” is a unit of measure used to specify the number of units of an item.



Inventory Setup


Inventory Controls



Inventory Planning

Agenda

Creating and Maintaining ItemsSetting up item Definition

DefineItems

Choose Item Attribute Control Levels

DefineCategories and Category Sets

CreateTemplates

DefineStatuses

3

DefineCatalogs

1

2

DefineStatusControlLevels

DefineUOMs


Item Attributes

Item attributes are fields in the item table used to store specific characteristics of an item, such as item status, unit of measure, revision control, etc.These can be controlled at either the master or the organization level.

Attributes Controlled at the Master Level

An item has the same value for such attributes in all organizations in which it is defined.

Master-level attributes can be only updated by using the Master Item window.

Inventory reflects your changes in all organizations that carry the item.

Attributes Controlled at the Organization Level

An item may have different values for such attributes in each organization in which it is defined.

When defining items in the item master, defaults for organization-level attributes can be specified.

Values of organization-level attributes can be updated only by using the Organization Item form in each

organization that carries the item.

Creating and Maintaining ItemsCreating and Maintaining Items

Functional Area Functionality

Stockable

Purchasable

Transactable

Build in WIP

InventoryAllows to store the item in an asset subinventory

Inventory, Order Management, Purchasing, WIP

Allows to transact the item Inventory, OM, PO and WIP

Purchasing Allows to place the item on a purchase order

Work in ProcessAllows to build the item on a discrete job and/or a repetitive schedule

Status Attribute

Status Attributes and Functionality


Status Attribute

Internal Orders Enabled

BOM Allowed

Customer Orders Enabled

Invoice Enabled

Functional Area Functionality

Order Management

Inventory, Order Management, Purchasing

Bills of Material

ReceivablesAllows to create an invoice for the item

Allows to create a bill of material for the item

Allows to create an internal sales order for the item

Allows to place the item on a sales order

Status Attributes and Functionality


Item Status

When defining an item, status must be given by using the Item Status attribute. The Item Status

attribute has a user defined set of yes/no values for the status attributes. The values are applied to

the status attributes when an item status code is chosen when defining an item.

For example, in the beginning of a product development cycle Item Status attribute is set to

Prototype with all of the status attributes defaulted to yes except for Customer Orders Enabled.

When the item is ready the Item Status attribute is set to Active to allow all functions for the item.


Item Attributes

Status Control

An unlimited number of status codes can be defined by the user.

One or more of these status codes can be assigned to an Item for implementation on a future date. The

status codes then automatically change on their user specified effectivity dates.


Item Templates

Templates are defined sets of attributes that can be used over and over to create many similar items.

Templates make initial item definition easier and more consistent.

Templates can be applied at any time after the item is created. Multiple templates can be applied to a

single item.

Templates can hold a complete set of attributes or a partial set. If a partial set, then only values

stored in the template overwrite those on the item


Item Templates

Users can define their own templates or predefined templates include:

ATO Model ATO Item ATO Option Class

PTO Model Phantom Item PTO Option Class

Subassembly Freight Supply Item

Finished Good Outside Processing Item

Planning Item Reference Item

Product Family Purchased


Item Categories

A category is a logical classification of items that have similar characteristics.

A category set is a distinct grouping scheme and consists of multiple categories.

Some application modules, Inventory , for example require that all items are assigned to a category.

The user specifies a default category for this purpose in each of these modules. Categories and

category sets are used to group items for various reports and programs.


Defining Items

With the Master Item window, items and the attributes associated with them (such as description, unit of

measure or lot control) can be defined and updated.

Much of the information for an item is optional. Only the information needed to maintain the item are

defined.

An item cannot be defined at the Organizational level. Oracle will automatically switch to the Master

Item window when defining a new item.


Defining ItemsAn item is a part or service that is purchased, sold, planned, manufactured, stocked, distributed, or prototyped. The following Modules use items:

Items

Lead Time

Attributes

Inventory

Attributes

Invoicing

Attributes

MRP/MPS

Attributes

Costing

Attributes

Bills of Material

Attributes

Order Management

Attributes

Purchasing

Attributes

Planning

Attributes

Work in Process

Attributes

Receiving

Attributes

Service

Attributes


Master Item vs. Organizational Item

Whether an item attribute is defined/maintained at the Master level or the Organization level can be designated.

Attributes at the Master level are the same across all organizations that the item is assigned to.

If an attribute is maintained at the Organization level, it can have different values in each organization the item is assigned.

Some attributes can be maintained at only the Master level or the Organizational Level. Unit of Measure should be maintained at the Master level. Min-Max should be maintained at the organizational level if multiple organizations are used.


Defining Items

(N) Inventory>Items>Master Items

Creating and Maintaining ItemsDefining Items

Organization Assignment



Inventory Setup


Inventory Controls



Inventory Planning

Agenda

Inventory Controls

With Inventory locator, revision, lot and serial number control can be implemented

Flexibility:

- Inventory controls are optional for all items.

- any combination of the four controls (locator, revision, lot and serial number) for each item can be implemented.

Overview

Inventory Controls

Locators are optional structures within subinventories.

Locators are the third level in the enterprise structuring scheme of Oracle Inventory .

Locators may represent rows, aisles, or bins in warehouses. Items can be received directly into and

shipped items directly from locators.

Locator setup

Inventory Controls

A revision is a particular version of an item, bill of material, or routing.

By using the ‘Revision control’ option while defining items item quantities can be tracked by item revision. To do so a revision is a must for each material transaction.

Revision control is enabled for items for which version changes or changes that are significant enough to track but are not affecting the function and feature of the item are tracked .

Revision Control item attribute cannot be changed when an item has quantity on hand.

Revision Control

When defining Revision numbers letters, numbers and characters such as A, A1, 2B, etc can be used.

Letters are always in upper case and numbers may include decimals.

To ensure that revisions sort properly, decimals should always be followed by a number.

Revisions are sorted according to ASCII rules.

Each revision must be greater than the previous revision. For example, revision 10 cannot be used after revision 9 because, according to ASCII sorting, 10 precedes 9.

Inventory Controls

Inventory provides complete lot number support for inventory transactions.

A lot identifies a specific batch of an item that is received and stored in an organization.

Lot control is a technique for enforcing the use of lot numbers during material transactions, thus enabling the tracking of batches of items throughout their movement in and out of inventory.

If Lot Control is turned on for an item, the lot number must be indicated to perform a transaction.

Lot Control

Lot Control must be turned on at the item level.

lot numbers must be assigned whenever items under lot control are received into inventory.

An inventory receipt can be split in to several lots, as necessary.

Quantities can be added to existing lot numbers.

Inventory will generate default lot numbers by using the default lot number generation method which is configured in the Organization Parameters window during setup.

Inventory Controls

Lot can have an expiration date by assigning a number of lot control shelf life days or by entering a lot expiration date.

The expiration date controls the availability of the lot for transacting and planning purposes.

Lot Control

Inventory Controls

Disabled Lots:

Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions.

Lot Control

Inventory Controls

A serial number is an alphanumeric piece of information assigned to an individual unit of an item. A serialized unit is a combination of an item number and a serial number.

Individual units of items can be tracked by using serial numbers. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. Serial numbers can be used to track items over which a very tight control is to be maintained.

One serial number per unit of an item can be assigned

Serial Control

Inventory Controls

Inventory uses the starting serial number prefix and the starting serial number specified in the Item screen .

The process of generating serial numbers is done through a concurrent report. This does not assign numbers to units in inventory, it simply reserves serial numbers for an item, for later use.

Serial ControlGenerating Serial Numbers

Depending on how Serial Number Control is set at the Master Item level will determine how serial numbers are generated.

If No Control is specified as the serial number control type, no serial number control will be enforced.

If Predefined is specified as the serial number control type, serial numbers for that item must be predefined.

If control At inventory receipt or At sales order issue, optionally serial numbers for the item can be predefined.



Inventory Setup


Inventory Controls



Inventory Planning

AgendaAgenda


Understanding of Transaction Types

Overview of Inventory Transactions

Miscellaneous Transactions

Subinventory Transfer

Inter Organization Transfer

Receipts

Move Orders

Overview

A transaction type is the combination of a transaction source type and a transaction action. It is used to classify a particular transaction for reporting and querying purposes.

TransactionSource Type

TransactionType

TransactionAction



Types of Inventory Transactions

Miscellaneous Transactions- This transaction is used to do adjustments in stock due to damage, obsolescence, issuing items for R & D or issuing track able expense items.

Subinventory Transfer- This transaction is used to transfer goods from one stockroom to another with in the same inventory organization.

Inter ORG Transfers- This transaction is used to transfer goods from one inventory organization to another.


Receiving Transactions- This transaction is used to move goods from receiving dock to specified subinventory and locator.

Sales Issue- This transaction is used to move goods from pick subinventory to staged subinventory.

WIP Issue- This transaction is used to issue materials against production orders.

MiscellaneousMiscellaneousReceiptReceipt

MiscellaneousMiscellaneousIssueIssue

OrganizationOrganization

SubinventorySubinventoryTransferTransfer

Subinventory

Locator

Locator

SubinventoryTransfer

Subinventory

Locator

Locator

Organization

Direct Direct InterorganizationInterorganizationTransferTransfer

Interorganization Interorganization Transfer by WayTransfer by Way

of Intransitof Intransit


Select the transaction type

Account for passing

adjustment transactions

If you want to enter transaction line by serial number for

serialized item check this box

Miscellaneous Transactions


Enter the quantity to be adjusted

Lot or serial number can be entered if item is a serial controlled or

Lot Controlled

Miscellaneous Transactions - Transaction Lines


Use the Subinventory transfer window to:Transfer material within your current organization between subinventories, or between two locators within the same subinventory

Subinventory transfer


The type can be Subinventory transfer to transfer from one

subinventory to another or any of the user defined transaction

type for source inventory & action subinventory transfer

Subinventory Transfer

Inventory TransactionsInventory Transactions

Subinventory Transfer Transaction Lines

Enter source subinventory Enter

destination subinventory

Enter Quantity

Saving the record will complete the transaction.


Pune

Organization

Mumbai

Organization

Delhi

Organization

Pune

Organization

Use IntransitInventory

(FOB = Receiving)

AustinOrganization

RequireInternal Order

to Ship

Use IntransitInventory(FOB = Shipping)

DirectTransfer

You need to define shipping network before doing inter organization transfer

Inter Org Transfer


Direct Inter–organization Transfers

We can use a direct inter–organization transfer to move inventory directly from a shipping organization to a destination organization. The validity of a transfer transaction depends on the controls we have defined in both the shipping and destination organizations for the items we want to transfer.

Inter Org Transfer


Inter–Organization Transfers via Intransit Inventory

We usually transfer material to intransit inventory when transportation time is significant. When we perform the transfer transaction, we do not need to specify the delivery location. We only need to enter the subinventory we are shipping from, a shipment number, the freight information, and, depending on the inter–organization transfer charge that applies between the organizations, a percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute transfer charges.

Type of Receipt Transactions Receive both internally and externally sourced shipments Process unordered receipts Receive substitute items Inspect items for quality control and invoice matching needs Correct transaction errors Receive returned items into inventory Return delivered items to receiving

Note: As part of inventory training only standard receiving transaction will be covered with receipt routing as Direct Delivery

Receipts


Use the Find Expected Receipts window to:Find source documents for which you can enter receipts. Use the Supplier and Internal tabbed region to search for Purchasing documents.

Receipts


Overview Of Move Orders

•Move orders are requests for the movement of material within a single organization.

• Manage all material requisition and request processes within an organization by manually or automatically creating, approving, and transacting a move order.

• Used for movement of material within a warehouse or facility for purposes like replenishment, material storage relocations, and quality handling.

Move Orders


Move OrderRequisition

• Account Transfer• Subinventory Transfer

• Manually Generated• Optional Approval Processing

ReplenishmentMove Orders

• Kanban• Min Max• Replenishment • Count

• Automatically Generated• Pre-approved• Ready for Transaction

Move Order Type Transaction Type Generation & Approval

Pick WaveMove Orders

Sales Order PickInternal Order Pick

• Pre approved• Print Pick Slip

Move Orders


Move Order Process Flow

PickingPicking

SourceSourcelocationlocation

Destinationlocation

Put awayPut away

Pick Pick TicketTicket

Move order locates Move order locates material sourcesmaterial sources

In case of shortageIn case of shortagemove ordermove order

can be re-plannedcan be re-planned

Move orderMove orderrequisitionrequisition

createdcreated

Approve move Approve move

orderorder




Inventory Setup


Inventory Controls



Inventory Planning

AgendaAgenda


Cycle Counting

Cycle counting is the periodic counting of individual items throughout the year. Count items of higher value more frequently than items of lower value. The differences between the system quantity and counted quantity are adjusted to correct the system quantity and inventory value in the system.

Physical inventory

A physical inventory is a periodic reconciliation of system on-hand balances with physical counts in inventory. It is normally done once in a year as a part of financial auditing requirement to verify inventory assets on balance sheet. Production is stopped at the time of carrying out this activity.


Define cycle count header

Update cycle-count items

Schedule items to count

Generate count requests

Enter cycle counts

Approve cycle counts

ABC Classification of items

Cycle Counting


ABC Analysis

•ABC analysis is a method of determining the relative value of items in your inventory sites.

• An ABC analysis involves ranking your items according to a criterion and then grouping items into classes.

ABC Classification

Inventory Accuracy ControlInventory Accuracy Control

Define ABC group

Assign items to ABC classes

Update class assignments

Purge ABC information

Define ABC compilation Define ABC classes

ABC AnalysisABC Classification


ABC Compilation

Criterion for categorizing your items in

Organization. It can be based on current value or

historical usage value

Cost type to pick up the unit cost

of items in compile set

Press Compile to generate

compile results

ABC Classification


Use ABC classes to identify the value groupings to which items belong. Define these classes using own terminology. For example, you might define classes High value, Medium value, Low value. Assign items of highest rank to the High class, those of lower rank to the Medium class and those of lowest rank to the Low class. Can use ABC classes to group items for a cycle count where you count “A” items more frequently than “B” items.

ABC Classification


ABC Classes

Define class names for your

ABC Classification purpose

ABC Classification


Schedule Cycle Count

Automatic Scheduling

Oracle inventory uses the number of items in each cycle count class, the frequency of each class, and the workday calendar of your organization to determine how many and which items you need to count during the scheduling frequency.

Manual Scheduling

You can manually schedule counts in addition to or instead of those generated with automatic scheduling.

Cycle Counting


Generate Cycle Count Request

Cycle count Scheduler for automatic scheduling

Generate Cycle count request to generate cycle count entries

Cycle Counting


• Oracle Inventory provides a fully automated physical inventory feature that you can use to reconcile system-maintained item on-hand balances with actual counts of inventory. Accurate system on-hand quantities are essential for managing supply and demand, maintaining high service levels, and planning production. You can:

• A physical inventory is done once a year to check and correct the accuracy of your inventory. Often used by banks to audit their investment into your company or to simply reset your stock levels so that inventory is correct and customer service is not impacted by wrong information.

• You can define and maintain an unlimited number of physical inventories in Oracle Inventory. A physical inventory is identified by a unique name you assign. You use this name to identify any activity, such as adjustments, pertaining to this physical inventory.

• You can define multiple physical inventories to count selected portions of your inventory, or you can count your total inventory. For example, if your warehouse has two large stockrooms, each represented by a subinventory, you can define two physical inventories, one for each subinventory. You can then perform your physical inventory of the first stockroom, independent of the second.


Physical Inventory


Define physical inventory

Take snapshot of on-hand quantities

Generate tags

Count items

Enter counts

Void tags

Approve counts

Run adjustment program

Purge physical inventory

Physical Inventory


Perform Physical Inventory Adjustments

The system performs adjustments by creating a material transaction for the +/- quantity of the adjustment. Once adjustment program is run the system does not allow a new tag generation or any further updates to the tag counts.You must approve or reject all adjustments or the system will not run the adjustments program. Tag quantities, adjustment quantities, and adjustment values can be reported before performing the adjustments.You can use the adjustment report to authorize approvals or request recounts of items with large pending adjustments.



Purge Physical Inventory

Purging tags only: You can purge all tags associated with a physical inventory definition. If irreversible mistakes are made in the count-entry phase, you can start over without refreezing your inventory.

Purging All Information You can purge the physical inventory definition, frozen quantities, tags and count quantities. This purge deletes adjustments but not the adjustment material transactions.




Inventory Setup


Inventory Controls



Inventory Planning

AgendaAgenda

Inventory Planning

• Performing Min-Max planning

• Performing reorder-point planning

• Subinventory replenishment planning

• Creating and executing Kanban cards

Planning methods:

Min-max planning is a method of determining when and how much to order based on user-defined minimum and maximum inventory levels. In Oracle Inventory you can perform min-max planning at two levels:

Organization: To perform organization-level min-max planning for an item, you must specify organization-level minimum and maximum quantities.

Subinventory: To perform subinventory-level min-max planning for an item, you must specify subinventory-level minimum and maximum quantities.

Inventory Planning

MIN MAX Planning

Inventory Planning

Enter minimum quantity

Enter maximum quantity

Enter fixed lot increments

Enter minimum order quantity

Enter maximum order quantityRun min-max report

Yes

No

Do you wantspecific lot

increments?

Determine minimumand maximum

quantities

MIN MAX Planning

Inventory Planning

Inventory Planning

The following equation represents when you should order:

Quantity Available= Min QTY- on hand quantity + quantity on orderIf Quantity Available is>0, the order should be placed

Order quantity = (maximum quantity) - [(on-hand quantity) + (quantity on order) ]

You can constrain the order quantity by specifying the following order modifiers for an item: Fixed lot multiplier Minimum order quantity Maximum order quantity

Inventory Planning

MIN MAX Planning

Inventory Planning

Enter item planning attributes.

Define subinventory-level min-max information (optional).

Run the Min-max report.

MIN MAX Planning

Enter the following:• Min-max minimum quantity• Min-max maximum quantity• Fixed-lot-size multiplier• Minimum order quantity• Maximum order quantity

Specify a planning level (either Organization or Subinventory).

Set up the appropriate profile value for requisition approval.

Select an Inventory Planning method.

Inventory Planning

MIN MAX Planning

Inventory Planning

Inventory Planning

Enter the minimum and

maximum quantity

Enter the planning method as Min Max Planning

Enter the source type as supplier if you want to

generate purchase requisitions. Enter

subinventory or organization if you want to generate move

orders

MIN MAX Planning

Inventory Planning

Inventory Planning

Min Max Report

Planning level can be organization or

subinventory. If it is subinventory the min max quantity should

have been maintained at subinventory level

Demand cut off date for demand

calculation

Inventory Planning

Inventory Planning

What are the different sources of supply to be

considered for calculation of quantity available

The program includes nettable subinventory as supply. In order to include non nettable subinventory make it

yes

If you don’t want to generate orders keep the option as No. it will print report for all those items

where quantity available is less than Min Quantity

MIN MAX Planning

Inventory Planning

Oracle Inventory ProcessesOracle Inventory Processes

Oracle Purchasing ProcessesOracle Purchasing Processes

Run Order ImportOracle Order Entry ProcessesOracle Order Entry Processes

Min-Max Planning

Reorder-Point Planning

Subinventory Replenishment

Populate Requisition Interface

Run Req. Import

Create Purchase Requisition

Create Purchase Order

Create Internal Requisition

Create Internal Order

Kanban

Inventory Planning

Inventory Planning

Reorder-point planning is a method of determining the size and timing of item replenishment orders.

Reorder-point planning uses the following pieces of information:Safety stockReplenishment lead timeitem demandOrder costCarrying cost

Reorder-point planning

Inventory Planning

QuantityQuantity

TimeTime

Reorder PointReorder Point

Safety StockSafety Stock

Inventory Planning


Inventory Planning

You can perform-reorder point planning for the entire organization.

You can use Reorder-point planning for items under independent demand.

You can specify Reorder-point planning as the inventory planning method when you define an item.

You can use Reorder-point planning for items that you do not need to control very tightly and that are not very expensive to carry in inventory.


Inventory Planning

Enter item planning attributes.

Define safety stocks.

Forecast Item Demand

Run Reorder-point report.

Reorder Point Planning Steps

Forecast item demand

Inventory Planning

Inventory Planning

Item Planning Attributes

Specify a maximum-order quantity.

Enter a carrying cost percent.Select Reorder-point as the inventory planning method.

Enter an order cost.Specify a fixed-lot size

multiplier.

Specify a minimum-order quantity.


Inventory Planning

Inventory Planning

Enter Lead Times

Enter processing lead time.

Enter preprocessing lead time.

Enter postprocessing lead time.


Inventory Planning

Inventory Planning

Item Planning Attributes

Set your planning method

Set your lead times on the lead time tab

Safety Stock method


Inventory Planning

Inventory Planning

You can select one of the following three safety stock calculation methods for each item: User-defined quantityYou can enter safety stock quantities and the date for which each quantity is effective. You can update safety stock quantities that you previously entered or that Oracle Inventory calculated for you.

User-defined percentageTo use the user-defined percentage method, you must use the Reload Safety Stock window and specify the following information for the item:A forecastA safety stock percent


Entering Safety Stock

You can select one of the following three safety stock calculation methods for each item:Mean absolute deviation

To calculate safety stock using this method, you submit a concurrent request using the Reload Safety Stock window. In this window, you must specify the following information:

A forecastA service level percent

safety stock = Z × 1.25 × (mean absolute deviation)where Z is the appropriate value from a table of standard normaldistribution, corresponding to the service level. The mean absolute deviation is a measure of how the forecast demand deviates form the actual demand.

Inventory Planning

Thank you….

oracle inventory shital

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