A planned order

reflects the actual quantity of an item that must be produced or purchased in

order to meet the requirement for that item

4. Analyze the MRP.

Oracle Material Planning
N > MRP > Workbench
MRP Planner Workbench

Identify potential problems (for example, production bottlenecks or material

shortages).

. What are demand classes?

A demand class may represent a particular grouping of customers, such as governmental and commercial
customers, or it may represent sales channels or regions. Demand classes may also represent different
sources of demand, such as retail, mail order, and wholesale.

4. What is Forecast consumption?

Forecast consumption replaces forecasted demand with actual sales order demand. Each time you create
a sales order line, you create actual demand. If the actual demand is already forecasted, the forecast
demand must be decremented by the sales order quantity to avoid counting the same demand twice.

Outlier Update Percent

This controls the effects of abnormal demand
Use the outlier update percentage to
ensure that these one time sales orders do not overconsume the
forecast.
The outlier update percent applies to how much of the original forecast
quantity
What is Demand time fence and Planning time fence?
Demand time fence is the period of time where system only considers Sales order demand and ignores
forecast demand in that period.
Planning time fence is the period of time where plan doesnt suggest any orders and considers the
existing demand/supply to be frozen.

MPS/MRP

1. What are demand classes?

Demand classes allow you to segregate scheduled demand and production into groups, allowing you to
track and consume those groups independently. A demand class may represent a particular grouping of
customers, such as governmental and commercial customers, or it may represent sales channels or
regions. Demand classes may also represent different sources of demand, such as retail, mail order, and
wholesale.
2. What is expected delivery date?
Excepted delivery date is number of days that system allows orders to arrive before they are needed.
The Acceptable Early Days item attribute is defined in Oracle Inventory. Oracle Master Scheduling/MRP
and Supply Chain Planning does not generate a reschedule out recommendation if the number of days
the order is going to arrive early is less than the acceptable early days delivery. This allows you to reduce
the amount of rescheduling activity within a material plan.

3. On what criteria are requisitions released via the planner workbench?

System looks at orders and ensures there exist no compression days for those orders i.e.
recommendation of those orders doesnt involve reduction of procurement lead times.
4. What is Forecast consumption?
Forecast consumption replaces forecasted demand with actual sales order demand. Each time you create
a sales order line, you create actual demand. If the actual demand is already forecasted, the forecast
demand must be decremented by the sales order quantity to avoid counting the same demand twice.
5. What are the uses of Master scheduling?
Master scheduling is used for:
demand management
scheduling production
validating the production schedule
managing the production schedule
You use the schedules generated by master scheduling as input to other manufacturing functions, such
as material requirements planning and rough-cut capacity planning.
6. What are the demand types used in MDS?
Demand types of Master Demand Schedule include
Item forecast
Sales order
Internal Requisition
Spares demand
7. What is meant by schedule reliefs?
Schedule reliefs are MDS entries to be decremented when you create purchase orders, purchase
requisitions or discrete jobs. System would show the unfulfilled demand by performing relief operations.

8. What is Demand time fence and Planning time fence?

Demand time fence is the period of time where system only considers Sales order demand and ignores
forecast demand in that period.
Planning time fence is the period of time where plan doesnt suggest any orders and considers the
existing demand/supply to be frozen.
9. What is the purpose of Planning Manager?
The Planning Manager is a background concurrent process that performs automatic forecast consumption
as you create sales orders.
10. What is the difference between Shrinkage Rate and Component yield?
Shrinkage Rate
For a particular inventory item, you can define a shrinkage rate to describe expected scrap or other loss.
Using this factor, the planning process creates additional demand for shrinkage requirements for the item
to compensate for the loss and maintain supply.
For example, if you have a demand of 100 and a discrete job for 60, the planning process would suggest
a planned order for 40 to meet the net requirements, assuming no shrinkage rate exists.
With a shrinkage rate of .2 (20%), Oracle Master Scheduling/MRP and Supply Chain Planning assumes
you lose 20% of any current discrete jobs and 20% of any suggested planned orders. In this example,
since you have a discrete job for 60, assume you lose 20% of that discrete job, or 60 times 20%, or 12
units. The net supply from the discrete job is 48. Since you have a total demand of 100 and supply of 48,
you have a net requirement of 52 units. Instead of suggesting a planned order for 52, the planning
process has to consider that 20% of that planned order is also lost to shrinkage.
Component yield
Component yield is the percentage of a component on a bill of material that survives the manufacturing
process. A yield factor of 0.90 indicates that only 90% of the usage quantity of the component on the bill
actually survives to be incorporated into the finished assembly.
The difference between a shrink rate and component yield is that Oracle Master Scheduling/MRP and
Supply Chain Planning applies the same shrink rate to every use of an item on a bill, whereas you can
vary the component yield factor you assign to each occurrence of an item on a bill. Another difference is
that shrinkage demand is calculated at the parent assembly level and passed down to components.
Component yield is calculated at the component level.
ASCP
1. What is the difference between ASCP and MRP?
ASCP allows users to perform holistic planning by taking into consideration multiple organizations in an
EBS instance where MRP plan considers only one inventory organization and multiple plans needs to be
created for multiple organizations. ASCP allows constraint planning thereby taking into consideration
supplier, organization capacity where as MRP only facilitates unconstraint planning.