R12 On-hand and Availability

Copyright © 2007, Oracle. All rights reserved.

 Objectives

After completing this module, you should be able to:

• Explain availability
• Understand how to view on-hand quantities
• Understand he uses of the material workbench
• Create an available to promise rule
• Understand how to create a reservation
• Understand how to implement on-hand and availability
profile options
• Understand how to use on-hand and availability
reports
• Understand on-hand and availability implementation
considerations

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 Overview of On-hand Quantity

Subinventory: FGI Subinventory: FGI

Locator: 1.1.1 Locator: 1.1.2
On-hand quantity: 19 On-hand quantity: 5

Subinventory: FGI
Subinventory: Bulk
Locator: 1.1.3
On-hand quantity: 15
On-hand quantity: 9

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 Overview of Reservations

Book sales order

Demand
source
Reservation

Receive material

Supply
source

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 Overview of Availability

Availability = - -
On-hand Reservations Pending
quantity transactions

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 Reservation Versus Allocation
Reservation
• Guarantee of inventory
• Made at different levels
• Does not have to be on-
hand inventory
• Can reserve purchase
orders, wip jobs, process
manufacturing batches
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Allocation
• Transaction suggestion
• Created against on-hand
inventory
• Very detailed to the
subinventory, locator, and if
applicable lot level.
• Result of the pick release
process
 Material Workbench

The material work bench enables you to view:

Inbound
material

Material in
receiving

On-hand
quantities

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 Display Options

You can display on-hand quantities by:

• Location
• Item
• Cost Group (WMS enabled organizations only)
• Status
• LPN (WMS enabled organizations only)
• Serial
• Lot
• Grade

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 Viewing Available Items

On-hand Available to Available to

quantity Reserve Transact

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 Material Workbench Transactions

You can use the material workbench to perform the

following transactions:
• Status update
• Cost group transfer
• Grade update
and the following requests:
• Mass move
• Mass issue
• Cycle counting

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 Available to Promise
Quantity

On-hand qty = 0 On-hand qty = 0

12 New supply = 12 New supply =8
Demand = 12 On-hand qty = 0 Demand = 4
10
New supply = 10
8 Demand = 13

6
4
2

Time

Beginning of End of ATP

ATP period Period

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 What are Supply and Demand?

Supply: The quantity of Demand: A need for a

goods available for use particular component

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 Uses of ATP in Oracle Inventory

Quantity

ATP
Time Supply

Data
Demand

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 ATP Rules Setup Steps

1. Define computation options.

2. Specify supply time fence.
3. Specify end of ATP horizon.
4. Specify demand time fence.
5. Specify demand sources.
6. Specify supply sources.

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 Defining Computation Options

Backward Consumption

Shortage in the
Surplus in a current period
prior period

Forward Consumption

Shortage in the Surplus in a

current period future period

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 Defining Computation Options

Accumulate Available

Window

Accumulation options

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 Specifying Supply and Demand Time Fences

Purchase

Time Fence =
Total Lead Time

Manufacture

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 Specifying Supply and Demand Time Fences

Infinite-Supply Option

End of ATP horizon

Options
• Cumulative manufacturing lead time
• Cumulative total lead time
• Total lead time
• User-defined time fence

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 Specifying Supply and Demand Time Fences

Day before
the next
scheduled
supply date
Supply Period

Scheduled Next
supply date scheduled
supply
date

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 Specifying Demand Sources

You can define demand sources for each ATP rule.

Only those demand sources that you enable are included
in the ATP calculation.

Demand Sources

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 Specifying Supply Sources

You can define supply sources for each ATP rule.

Only those supply sources that you enable are included in
the ATP calculation.

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 Setting Up Item and Bills for ATP Checking

Enable the item for ATP checking

Assign ATP rule to the item

Is item, Is Item a
ATP/PTO only,
No component of
a parent of an an ATO/PTO
assembly? assembly?

Yes Yes
Enable components for ATP
checking

Update ATP checking ability at the

bill-component level

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 ATP Checking

Enable Check ATP Attribute

ATP Test

Enter Demand

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 Reservation Types

Organization Organization

High-level Low-level
reservation reservation

Reservations

Reservation
Information

Reservation
information

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 Supply Types

On-hand Material in Intransit Process

inventory receiving shipment batch

Internal requisition,
Job Schedule
purchase order, and
advanced shipment notice

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 Demand Types

Sales order and

internal order Inventory User-defined Schedule

Account and
account alias Job Cycle count

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 Reserving Material

Demand

Reservations

Supply

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 Reservation Management- Transfer Supply

On-hand
Internal requisition,
inventory

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 Reservation Management- Transfer Demand

Schedule Sales order

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 On-hand and Availability Reports

Report Description

Item Quantities Summary Report Lists the item and the on-hand
quantity.
Locator Quantities Report Lists item quantities by locators.

Item Reservations Report Determines how many units of an

item are reserved for an account, an
account alias, or for user-defined
source types.
Subinventory Quantities Report Lists item quantities by subinventory

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 Profile Options

Profile Option Description

INV: Capable to Promise Indicates whether to enable the CTP

calculation.
INV: External ATP Indicates whether non-Oracle ATP
products can be integrated with
Oracle.
INV: Maximum Number of Quantity Indicates the maximum number of
Trees memory data structures that will be
used to capture on-hand quantity
information

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 Profile Options (Cont)

Profile Option Description

INV: RVC Timeout Indicates the time in seconds the Item

INV: FIFO for Original Receipt Date
Supply / Demand form waits for a
success message to be returned from
a remote procedure call before it
returns an error message.
Controls how the system tracks
receipt dates for on-hand records.
Allows you to determine when
picking inventory look at the original
receipt date of the material into the
organzation, or at the last transfer or
transaction date.

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 Implementation Considerations

• Do you need to create reservations?

– Reservations restrict material movement within the
organization
– Reservations limit the options of planners
• Do you want to auto create reservations from sales
orders?
– If the profile option ONT: Reservation Timefence within 30
days is set to yes, then Oracle Inventory automatically
creates based on a sales order.

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 Summary

In this module, you should have learned how to:

• Explain availability
• Understand how to view on-hand quantities
• Understand he uses of the material workbench
• Create an available to promise rule
• Understand how to create a reservation
• Understand how to implement on-hand and availability
profile options
• Understand how to use on-hand and availability
reports
• Understand on-hand and availability implementation
considerations

1 - 34 Copyright © 2007, Oracle. All rights reserved.