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Raju Ch
Course Objectives
Review the new features of the R11i product
Describe the business value of using the new
features
Demonstrate the key features
Discuss the implementation considerations
Explain how the new features work within the
product family
Supplement the R11i new features with handson review quizzes, labs and exercises.
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Course Overview
Module Overview
Inventory Structure
Item Setup and Items
Item Classification
Inventory Controls
Inventory Transactions
Inventory Transactions R11i New Features
Inventory Planning and Replenishment
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ABC Analysis
Cycle Counting and Physical Inventory
Workday Calendar
Unit Of Measure
Available To Promise (ATP)
Forecasting
Review Exercises
Summary
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INVENTORY STRUCTURE
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Objectives
Enterprise Structure
Inventory Organization and Parameters
Subinventories
Locators
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Enterprise Structure
Human Resources View
Business Group
Legal Entity
Operating Unit
Work areas for:
Inventory/warehousing
Costing
Manufacturing etc.
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Enterprise Structure
Accounting View
Set of Books
Legal Entity
Operating Unit
Work areas for:
Inventory/warehousing
Costing
Manufacturing etc.
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Enterprise Structure
Business transactions affected by:
Set of Books
Costing Methods
Item Costs
Workday Calendars
Movement Between Inventory Sites
Planning Method
Forecasting
Accuracy Analysis
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Inventory Organization
Inventory Organization is the first level of
stratification of inventory items
An Inventory Organization is an inventory
location defined by its set of books, item
and costing
Following Oracle Modules are controlled at the
Inventory Organization level:
Inventory, BOM/ENG, Costing, WIP, MS/MRP
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Inventory Organization
Following are controlled at Operating
Unit Level
Purchasing, Order Entry, AR, AP
Inventory Organization
Master organization
Child organizations
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Define
Define
Define
Define
Set of Books
Legal Entities
Operating Units
Inventory Organizations
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Organization Parameters
Organization Code
Definition of a Master Organization
Costing Parameters
Locator Control
Serial Control
Lot Control
Revision Control
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Organization Parameters
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Organization Parameters
Inventory Asset Account Parameters
Inter-organization Transactions & Account
Parameters
Receiving Accounts Parameters
Profit and Loss Account Parameters
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Organization Parameters
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Key Flexfields
Facilitate defining of codes using meaningful
segments to codify GL accounts, part
numbers, and other
business entities
Called as key flexfields
Flexible mechanism to define coding scheme without
programming
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Sub-Inventory
Logical or physical subdivision of an inventory
organization
Raw inventory, finished goods, or defective material.
All material held in sub-inventories
At least one sub-inventory must be defined
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Sub-Inventory
Sub-inventories can be:
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Sub-Inventory
Sub-inventories can be used to:
Restrict certain items to specific sub--inventories by:
associating items with specific subinventories using item/ sub-inventory form
setting item attributes for restricting
sub-inventories
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Sub-Inventory
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Locators
Further optional subdivisions of a subinventory
Row, Rack, Bin
Defined using the locator key flex field
Ability to restrict certain items to specific locators
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Locators
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Objectives
What is an Item?
Item Types
Item Attributes
Status Attributes
Attribute Controls
Master Organization
Creating Items
Item Templates
Item Relationship
Cross Reference
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Item
An Item is:
Any unique manufactured or purchased part,
service, material, intermediate, subassembly,
or product
Item Data
Shared data in Oracle Manufacturing & Oracle
Financials
Purchasing, Order Entry, Cost Management,
Bill of Material, Engineering, MRP / MPS,
Work in Process, Receivable , Payable,
Fixed Assets, Sales & Marketing,
Quality, Service etc.
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Types of Items
Seeded Item Types
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Types of Items
Seeded Item Types
Kit
PTO Item
Outside Processing Item
Consignment Items
Phantom Item
PTO Model
Option Class
Option Item
Reference Item
Supply Item
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Item Type
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Item Attributes
An Attribute is a property of item controlling
the behavior of an Item in various functional
areas and business processes
Set during item definition
Oracle Inventory uses around 160 Mandatory and
optional attributes for defining items
Attributes can be module dependent i.e. can be set
only if the concerned Oracle Product is installed
For example :Item can be sold by setting attribute
Customer Order Enabled to yes only when OE is
installed
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Item Attributes
Item attributes grouped into groups
Main
Inventory
Bill of Material
Costing
Purchasing
Receiving
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Item Attributes
Item attributes grouped into groups (contd.)
General Planning
MS/MRP Planning
Lead Times
WIP
Order Entry
Service
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Transactable
Allows to transact the item in Oracle Inventory, Oracle
Order Entry, Oracle Purchasing and Oracle Work in
Process
Purchasable
Allows to place the item on a purchase order
BOM Allowed
Allows to create a bill of material for the item
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Invoice Enabled
Allows to create an invoice for the item
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Attribute Dependencies
Certain attributes depend on each other. For example:
Stockable must be no
if Inventory item attribute is no
Transactable must be no
if Stockable attribute is no
Purchasable must be no
if Purchased item is no
Build in WIP must be no
if Inventory item is no
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Attribute Dependencies
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Attribute Controls
Two types of Controls for Item attributes
Status Control
Only for control of item status attributes
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Stockable
Transactable
Purchasable
Build in WIP
Customer ordered
Internal orderable
BOM allowed
Invoice enabled
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
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Stockable
Transactable
Purchasable
Build in WIP
Customer order
Internal order
BOM allowed
Invoice enabled
Yes
No
No
No
No
No
No
Yes
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Organization level
Used for attributes having different values in different
organizations
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Organization Assignment
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Item Templates
Used to define attribute settings for generic
item types
Oracle provides pre-defined item templates
Can be updated or modified
Custom / new templates can be defined
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Item Templates
Custom item templates defined using define
item template form
Custom templates specific to an inventory
organization can be defined
Template defined for an organization can only be
used in that organization
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Item Template
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Item Cross-Reference
Item Cross-Reference
Item Cross-Reference allows cross referencing of
Inventory item codes to other codification schemes
such as
Old and new item codes
User names and item code relationships
Used mainly for reporting purposes
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Item Relationships
Used to improve purchasing management and
item searching capabilities
Types of Item Relationships
Item Cross-References
Substitute Items
Related Items
Manufacturer Part Number
Customer Items
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Item Relationships
Used to define whether items are substitutes
of each other or if there is some non-specific
relationship between them
Allows usage of substitute relationships in
purchasing to order and receive Item substitutes
Non-specific relationships used mainly for reporting
purposes
Can be reciprocal
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LAB 1
Inventory Setup
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LAB 1
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ITEM CLASSIFICATION
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Objectives
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Item Catalogs
Catalog is a group of items that share common
characteristics.
Catalogs descriptive elements can be used as
search criteria for items.
An item catalog group can have any number of
descriptive elements.
When an item is assigned to catalog group,
descriptive elements values can be set.
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Item Categories
Used to group items for querying, reporting,
accounting, assigning responsibility purposes
Accomplished by defining category sets
and categories
A Category is a logical classification of items that
have similar characteristics
A category set is a logical grouping of categories
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Item Categories
Each item should belong to at least one
category set
Each item can belong to many categories
Each category can have many items
A category set can have many categories
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Item Categories
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Item Categories
Used in various Oracle Modules to:
Specify a group or groups of Items for submission of
various programs, reports, screens and queries
Assign default overhead rates to specific category of
Items
Summarize demand history and generate forecasts
for a group of Items
Perform min-max planning and reorder point
planning for a range of Item categories
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Item Categories
Used in various Oracle Modules to:
Calculate lead times for Items within a category
Schedule orders and update price lists for Items in a
category
Group purchase orders by Item category
Receive Items that belong to a particular category
Schedule sales order lines by Item category
Prorate discounts across Item categories
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Category Flex-field
Implementation of Category and Category Sets
Key Flexfields is a mandatory step
Different category set structures can be
designed to fulfill unique grouping requirement
For
For
For
For
Warehouse
Purchasing
Accountants
Order Entry
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Inventory
Purchasing
Order Entry
Engineering
Cost Management
Service
Planning
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LAB 2
Item Classification
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INVENTORY CONTROLS
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Objectives
Understand and implement Inventory controls
Describe Lot and Serial Number Control on item
Understand stock locator control
List different types of controls in Oracle Inventory
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Inventory Controls
Lot
Control
Serial Number
Control
Locator
Control
Revision
Control
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Lot Control
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Lot Control
Uniqueness
Unique lot number for items across all inventory
organization
No uniqueness requirement
Numbering scheme
Combination of prefix and a number
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Locator Control
Used for numbering physical locations /
addresses in a sub-inventory
Often to restrict item transactions to or from specific
locations
Implemented by:
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Locator Control
Uniqueness
Locators (based on segment combination) are always
unique in an inventory organization and can be setup
for uniqueness across organizations
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Locator Control
Items can be restricted to specific subinventory / locator combinations for
transactions by:
Setting up locator control for items to be restricted in
item attributes
Specifying restrict sub -inventories and restrict
locators in item attributes for those items concerned
inventory organization attributes
Defining sub-inventory and locators in those subinventories
Associating items with sub-inventory / locator
combinations using the item/sub-inventory form
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1. Organization Level
2. Sub-inventory Level
3. Item Level
Define Sub-inventories
Define Locators
Enter Locator Information
when Performing Transactions
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Inventory Controls
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LAB 3
Inventory Controls
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INVENTORY TRANSACTIONS
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OBJECTIVES
Definition Inventory Transaction
Transaction Setup
Receiving Transactions
Sub-Inventory Transfers
Inter-Org Transfers
Miscellaneous transactions
WIP Material Transactions
Shipment Transactions
RMA
Transaction Inquiries
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Inventory Transactions
An inventory transaction is:
Any business event/process that results in changes to
either quantity or value of items
Used to control the flow of material in the
organization
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Inventory Transactions
A transaction could be:
A transfer of material between warehouses, between
manufacturing facilities, or between stockrooms
A shipment of finished goods to the customer
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Inventory Transactions
Change in Physical/Logical
location of material
When do
transactions
occur?
Change in quantity
of item(s)
Change in accounted
value of item(s)
Generation of Accounting
Transaction to support
the Parent Transaction
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Transaction Types
Oracle inventory supports a large number of
standard (36) transaction types to satisfy
various business needs for inventory control
Transaction types can be customized or new
transaction types created
Transaction type defined using
Transaction source type
Transaction action
Transaction types form
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Transaction Actions
Specifies the result of the transaction action
Oracle provides pre-defined transaction
actions
Only names can be customized but not the effect of
the action
Pre-defined actions
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Transaction Actions
Pre-defined actions:
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Transaction Actions
Pre-defined actions:
Assembly completion
Assembly return
Negative component issue
Negative component return
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Transaction Managers
The transaction managers execute the
following processes:
Material transaction
Demand reservation
Move transaction
Resource cost transaction
Material cost transaction
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Transaction Managers
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Inventory Transactions
Inventory transactions fall in following broad
categories:
Receiving Transactions
Sub-inventory Transactions
Move Orders
Inter-organization Transfers
Miscellaneous Transactions
WIP Material Transactions
Shipment Transactions
Return Material Transactions
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Receiving Transactions
Used primarily for receiving against supplier
purchase orders
Materials received into an inventory location
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Receiving Transactions
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Sub-Inventory Transfers
Used primarily to transfer material between
Two sub-inventories or
Two locators of a sub-inventory of an inventory
organization
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Sub-Inventory Transfers
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Sub-Inventory Transfers
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Inter-Organization Transfers
Inter-Organization Transfers
Used to move material between two inventory
organizations within an operating unit
Requires defining shipping networks between them
Types :
Direct transfer
In transit transfer
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Inter-Organization Transfers
Direct Transfer - issuing and receiving
transactions performed simultaneously
Immediately reflected in the system quantities
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Inter-Organization Transfers
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Inter-Organization Transfers
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Inter-Organization Transfers
Used widely for replenishment of Inventories
Min-max or reorder point planning creates internal
requisitions
Fulfilled by requesting an inter-organization transfer
Requires Purchasing, Order Entry in addition to Inventory
for internal order processing
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Miscellaneous Transfers
Miscellaneous transfers are used to perform
any miscellaneous issues out or receipts into
inventory
To perform receipts other than against a PO to a
vendor
Creates distributions directly to the sub-inventory and
other specified account numbers or account aliases
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Miscellaneous Transfers
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Miscellaneous Transfers
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Shipment Transactions
Shipment Transactions
Used to fulfill customer orders
Through the Ship Confirm
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Receiving
Transaction
Shipment
Transaction
WIP Material
Transaction
Inventory
Transactions
InterOrganization
Transfer
Miscellaneous
Transfers
Return Material
Transaction
Sub-inventory
Transfers
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Transaction Inquiries
View
View
View
View
Material Transaction
Transaction Summaries
Pending Transactions
Material Transaction Distributions
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Common Features
Control and Validation
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Common Features
Screen Supports:
Multi-line orientation
Multiple units of measure with item primary UOM
default
Item description display
Descriptive flex fields
Transaction reason codes
Transaction reference
Negative inventory parameter validation
Quantities displayed in UOM
Dynamic on-hand quantity and available quantity
display
Available quantity = on-hand quantity - reservations
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LAB - 4
Inventory Transactions
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INVENTORY TRANSACTIONS
R11i New Features
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OBJECTIVES
Move Orders
Material Shortages
Serial Genealogy
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Move orders
Move orders
Used for moving stock within an inventory
organization as a better managed material flow
Traditionally done using Miscellaneous transactions,
account transfers or sub inventory transfers
Previously a one step activity providing no visibility,
planner intervention or documentation
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Move orders
Move orders
Faster and managed inventory movement
User can request a move order which gets sent to a
picker for actual execution
Replenishment mechanisms can auto trigger move
orders
Integrated to Picking
Move orders utilize the same mechanism of pick slips
and inventory visibility as a sales order
APIs
APIs allow move orders to be transacted through
mobile devices
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pick release
kanban replenishment
min max
replenishment count report
Header
Stores the move order source type , default source and
destination , requested date
Line
Stores item , requested quantity , source , destination , any
specific serial or lot information
Line Detail
Auto Filled during detailing or entered manually
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Move Order
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Define planners
Associate planner with items.
If no planner then move order auto approved
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Material shortages
Purpose
To inform receiving personnel about potential cross
docking opportunities for incoming material to
alleviate shortages else where by
Enabling shortage monitoring for items
Receiving real time messages at receiving time of items
that may be in short supply using
Alerts or
Workflow notifications
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Material shortages
Enabling shortage monitoring for items
Set up shortage parameters
Enable item for shortage messages
Enable the desired transaction types for shortage
notifications
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Material shortages
Set up shortage parameters
Enable checking of shortages at organization level
Set up separate controls for two major sources of
demand
Work in process shortages
Order entry shortages
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Shortage Parameters
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Material shortages
For work in process shortages specify jobs /
schedules to consider
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Material shortages
Enable item for shortage messages
Enable Item attribute for checking shortages
Assign the planner and buyer to the items for which
shortage messages need to be received by them
Required setup to send notification to item and
assembly / component planners and buyers
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Material shortages
Enable the transaction types for alert or
shortage notifications
Available transaction types are
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Material shortages
Schedule the Material shortage check
processor concurrent program
Set up notification preferences of the user
Use preferences window in oracle workflow
As html or email etc
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Material shortages
Viewing shortage alerts
Displayed automatically when receipt is performed
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Serial genealogy
Facility to track serialized items / components
history from receipt through WIP to customer
sale
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Serial genealogy
Features
Provides a graphical interface for viewing
composition and transaction history of any serial
controlled item
Provides features for forward and backward tracing
Visibility to transactions that created / used the
item/component
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Serial genealogy
Capturing serial number information
In WIP when
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Serial genealogy
Capturing serial number information
In PO / Inventory when
Receiving a serial controlled item against a vendor PO
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Serial genealogy
View serial genealogy using the View
genealogy form
Parent genealogy
Child genealogy
Transaction history
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Objectives
Inventory Planning
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Objectives
Inventory Planning
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Inventory Planning
The need for Inventory Planning
Essential for managing appropriate levels of inventory
Primarily to answer two key questions:
How much to order ?
When to order ?
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Inventory Planning
Oracle provides three inventory planning
methods to be used:
Min Max Planning
Reorder Point Planning
Replenishment count processing
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Inventory Planning
Techniques
Organization
Level
Min-Max
Planning
Reorder Point
Planning
Replenishment
Counting
AT
AT
AT
Organization
SubInventory
Level
SubInventory
Level
Level
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Min-Max Planning
A technique where minimum and maximum
levels of inventory are specified
Inventory is managed between the specified levels
When the on hand level of the Inventory Item falls
below the specified minimum level reordering is
triggered
Reorder quantity based on:
Lot for lot
Fixed order quantity
Fixed lot multiples
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Min-Max Planning
Set ups
Define item inventory planning attribute to
Min-max planning for the concerned organization
Specify
Item minimum quantity
Maximum quantity
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Min-Max Planning
Set ups
Define any order modifier for reordering
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Min-Max Planning
Min-Max Planning technique can be applied at
the following levels:
Organization level
Sub-inventory level
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Min-Max Planning
Min-Max Planning is performed by
Executing the Min-Max Planning Report
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EOQ =
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Replenishment Counting
Used to order items for replenishment for non
quantity tracked sub-inventories
Uses methods of visual inspections to enter
either item counts or the reorder quantities
directly
In case of entering a visual count the expected
minimum and maximum levels of the
replenished items also need to be provided as
part of the item/sub-inventory set ups
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Replenishment Counting
For using this process, it is important to
Implement manual processes of visual inspections
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Replenishment Counts
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Sources of Replenishment
Internal / external set up in the item attributes
general planning region
If internal , need to specify internal inventory source
organization and sub-inventory
If sourced from external supplier organization
Supplier name not specified in item attributes
Automatic sourcing rules can be created in purchasing
to specify supplier(s) to whom requirements may be
sourced
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Organization level
Sub-inventory level
Item level
Item / sub-inventory level
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ABC ANALYSIS
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Objectives
ABC Analysis
The relative importance of inventory items based on
certain criteria
How to control these items
How much to order at one time
When to order
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ABC Analysis
With Oracle Inventory the user can:
Perform ABC analysis by organization or subinventory
Choose a different ranking criterion for each ABC
analysis
Define any number of ABC classes using
terminology provided by the user
Assign items to multiple ABC classes
Use ABC analyses to drive cycle counting
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ABC Analysis
Major Features
Define ABC Classes
Define users terminology for identifying classes
(ABC, XYZ, I II III IV, VED etc.)
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ABC Classes
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ABC Compile
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ABC Analysis
ABC Compile Scope
Determines the list of items for inclusion in ABC
analysis
The user can compile ABC analyses for an entire
organization or an individual sub-inventory
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ABC Analysis
ABC Compile Criteria
Current on-hand quantity
Use the current system on-hand quantity of the item
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ABC Analysis
Historical number of transactions
Use the total number of transactions against each item
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ABC Analysis
Previous cycle count adjustment value
Use the total of all previous cycle count adjustment
values
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ABC Analysis
Compile
To generate the ABC compile
Assign Items
To assign items to valid ABC codes defined
Update Classes
To manually update ABC classes assigned to items
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LAB 7
ABC Analysis
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Objectives
Cycle Counting & Physical Inventory
Inventory cycle counting techniques
Physical inventory techniques
How they compliment each other to ensure inventory
accuracy
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Physical Inventory
The actual inventory itself
The determination of inventory quantity by actual
count
Physical Inventories can be taken on a continuous,
periodic, or annual basis
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Cycle Counting
Cycle counting - is the periodic counting of
individual items throughout the course of the
year to ensure the accuracy of inventory
quantities and values
Cycle counting may be performed instead of
taking complete physical inventories
Both techniques can be performed side-by-side
to verify inventory quantities and values
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Define
Cycle
Count
Adjust Based
on Approval
Tolerances
Approve
Reject
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Manual or automatic
Specify count scheduling frequency
Specify class count frequency
Specify class / item level tolerances if desired
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Manual Scheduling
Schedule counts manually in addition to, or
instead of automatic scheduling
Run the cycle count request manually
Have no impact on automatically scheduled counts
Can be used to count some items more frequently
than initially planned
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Manual Scheduling
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Physical Inventory
Physical Inventory
The actual inventory itself
Determination of inventory quantity by actual count
Can be taken on a periodic or annual basis
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Physical Inventory
Define Physical
Inventory
Take a Snapshot
Generate Tags
Approve
Reject
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Physical Inventory
Define Physical Inventory
For the entire inventory organization or specific subinventories within the warehouse
Choose approval policies
Required, not required or required when out of
tolerances
Define approval tolerances also
Run snapshot
Creates a snapshot of system on-hand quantities
Used to freeze on hand quantities at a given point in
time
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Physical Inventory
Define Tag Numbering Scheme
To generate blank or pre-numbered, manually
entered tags
Specify tag prefix and start number, increment for
automatic numbering of alphanumeric tags
Generate Tags
Inventory generates one tag for each unique
combination of item, revision, sub-inventory, locator,
lot number and serial number
Oracle Inventory can generate default or blank tags
for the physical inventory
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Physical Inventory
Generate Tags
The tag numbers may be alphanumeric, but only the
numeric portion may be incremented
The alphabetic characters in the tag number stay
constant
Tags must be fully accounted for or voided
Void unused or lost tags
Post Adjustments
To inventory balances and general ledger accounts
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WORKDAY CALENDAR
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Objectives
Workday Calendar
Understand Workday Calendar in Oracle Inventory
Defining a Workday Calendar
Shifts and Shift Exceptions
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Workday Calendar
Workday Calendar
Definition of available workdays for one or more
organizations
Oracle
Oracle
Oracle
Oracle
Master Scheduling/MRP
Inventory
Work in Process
Capacity
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Workday Calendar
Defining a Workday Calendar
Define calendar start date, end date
Specify on off pattern (for example, 5 days on before
an off occurs and 2 days off before an on occurs)
Manually mark any specific days as exception to the
pattern or define and load an exceptions list
Define Shifts
Optional, provides flexible shift schedules and
timings
Define shift exceptions
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Workday Calendar
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LAB 9
Workday Calendar
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UNIT OF MEASURE
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Objectives
Unit of Measure UOM Classes
Unit of Measures
UOM and Conversions in Oracle Manufacturing
Managing Units of Measure in Oracle Manufacturing
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Unit of Measure
Unit of Measure
Unit in which the quantity of an item is measured,
recognized, stored, received , issued or transacted
pounds
each
box of 12
package of 10
case of 14
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Objectives
Available to Promise
ATP
ATP Rules
ATP Computation Options
ATP Time Fence Options
Supply and Demand Sources
Used for ATP calculations
ATP in Organization
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Available to Promise
Used to make valid achievable delivery
promises to customer
Provides ability to match customer
requirements demands to available on hand and
expected supply
ATP calculations determine the uncommitted
portion of companys inventory and planned
supply.
If inventory and planned supplies exist, they
can then be promised to meet customer
demand
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Available to Promise
ATP calculations assist in committing items
requested Items in specified quantities, at a
specified date
The ATP quantity is the uncommitted inventory
balance in the first period and is normally
calculated for each period in which a Master
Production Schedule (MPS) receipt is scheduled
ATP includes on-hand inventory less customer
orders that are due and overdue
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Available to Promise
Benefits of ATP
Availability of an Item in required quantity on a
specific date is determined
Availability of a group of Items in required quantities
on a specific date can also be determined
Earliest availability dates for an Item or a group of
Items, can be determined
For ATO & PTO items ATP takes into account the
availability of key components
ATP results are supported by Supply and Demand
details for an Item over a period of time and can be
viewed for decision purposes
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Available to Promise
Implementing ATP in Inventory
Define ATP Rules
Associate ATP rules to the specific items in the ATP
rule item attributes
For items for whom ATP calculation is to be done
during Order Entry enable the check ATP item
attribute
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Implementing ATP in Inventory
For models, if ATP of components is also to be
assessed , check ATP components Item attribute
This attribute can be set to Yes only if any of the
below listed attributes are set to yes
Assemble To Order is set to yes
Pick Components is set to yes
WIP supply Type is set to Phantom
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Available to Promise
Implementing ATP in Inventory
Specify components in the Bill Of Materials for which
ATP will be done/not done
Over rides the item attribute level setting
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Available to Promise
Define ATP Rule
Use the define ATP rule form to create rules
No limit on number of ATP Rules that can be created
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Available to Promise
Backward Consumption
Allows the user to check prior records for available
quantities of Items to meet demand
Forward Consumption
Allows the user to check future records for available
quantities of Items to meet demand
Accumulate Available
Allows use of excess quantities from a period to
accumulate in future periods
An accumulation window can be specified
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Possible Choices
No forward and no backward consumption
Also know as period ATP
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Demand and Supply Past Due Days
Past due demand days
ATP does not include any demand orders with a due
date prior to this time fence
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Available to Promise
Infinite Supply Time Fence
Oracle Inventory does not consider supply sources
scheduled on or after this date in ATP calculations
It assumes that after this date infinite supply is
available to cover any demand
Choice in terms of:
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Sources of supply to consider in ATP
calculations
Choose to include current on-hand quantity,scheduled
intransit shipments, purchase orders, vendor
requisitions, internal requisitions, discrete WIP jobs,
repetitive schedules, and discrete and repetitive MPS
supply
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Available to Promise
Using ATP
Use the ATP form in Inventory
Specify item, quantity needed and the date by which it is
needed
Specify the ATP rule to be used if not already defaulted
Results displayed on selecting ATP results
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Available to Promise
Using ATP
In addition to running ATP for an individual item, the
user can run group ATP
Available in order entry
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Forecasting
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Objectives
Forecasting
Forecasting methods
Forecast Sets
Various Types of Demand
Time Buckets
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Forecasting
Forecasting Methods & the Techniques
Available for Forecasting
Consuming Forecasts
Various Levels of Consuming Forecasts
Forecasting Operations & Forecasting Rules
How to Compile Statistical Forecasts
How to Import Forecasts from External Sources
Exploding Forecasts by Demand Class
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Forecasting
APICS Definition
Forecasting is the business function that attempts to
predict sales and use of products so they can be
purchased or manufactured in appropriate quantities
in advance
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Forecasting
Oracle Inventory provides two broad types of
methods:
Focus Methods
Statistical Methods
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Forecasting
Focus Forecasting Method:
Short-term method
Based on simulation of alternate forecasting methods
from prior periods in which the actual demand is
known
Chooses the forecasting method that produces the
best fit forecast for the known period
Intended to produce only one forecast period
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Forecasting
Statistical Forecasting Method:
Addresses a longer term time frame
Provides forecasts for numerous future periods
Oracle Inventory provides algorithms for:
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Forecasting
ESF technique
Demand forecast by averaging actual demand from
previous periods
The more recent data has greater influence than the
old data
TSF technique
Incorporates trend factor in the demand forecast
Implemented by introducing a Tend Index in the
basic ESF model
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Forecasting
SEF Technique
Incorporates seasonality into forecast calculations
Incorporated by including a seasonality index in the
forecast model
Represented as a factor indicating the deviation from
the average demand
TSEF
Reflects a combination of the TEF and SEF techniques
Produces a forecast demand that is adjusted for the
trend as well as the seasonality of the demand
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Forecasting
Forecasts in Oracle Inventory
Can be created using:
Manual entry
Using Oracles Focus / Statistical methods of forecasting
Using third party tools and importing forecast using the
open forecast interface
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Forecasting
Forecasts in Oracle Inventory
Has the capability to consume forecasts each time
customers place sales order demand for a forecast
product
Ability to loads forecasts, together with sales orders,
into master demand and production schedules
Provides capability to derive forecast for dependent
items
Forecast explosion uses the BOM structure to derive the
dependent demand for MDS and MPS planned items
Explodes Forecasts from aggregate for product families,
and models
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Forecasting
Forecasts in Oracle Inventory
Ability to define demand classes for group of
customers or sales orders with similar characteristics
and consume forecasts by demand class
Ability to use MPS to drive MRP
Ability to loads forecasts from multiple organizations
Forecasts defined in daily, weekly, or periodic
buckets
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Forecasting
Forecast contains information on:
Original quantities
Current quantities
Confidence factor
Specific customer related details
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Forecasting
Creating Forecasts in Oracle
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Forecasting
Forecast Set
Group of one or more complementing forecasts
To define a forecast set specify:
Forecast Level
Consumption Level
Outlier Percentage Update
Backward & Forward Consumption Days
Time Bucket Types
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Forecasting
Item attributes used in planning and
forecasting
Items that have independent demand have planning
attributes as MDS or MPS planned items
Items which have dependent demand typically have
Planning attributes as MRP planned
Forecasts are generally prepared for MDS / MPS
planned items
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Forecasting
Forecast Consumption
Total demand is sum of forecast demand and sales
order demand
The process of replacing forecast demand with actual
sales order demand is called consuming forecast
Done on booking of a sales order by using the sales
order schedule date
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Forecast Consumption
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Forecasting
Forecast Consumption Affected by:
Forecast Level
Demand Class
Sales Order Quantity
Sales Order Date
Forecast Bucket Type
Backward & Forward Consumption Days
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Forecasting
Forecast Consumption
Performed in two ways:
Consumption by Demand Class - forecasts are
consumed at the Demand Class level for a Group of
Items which are similar in nature and the Sales Order
Demand addresses the same Demand Class.
Consumption by Forecast Level
Item level
Customer level
Bill-to Address level
Ship-to Address level
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Forecasting
Backward Consumption Days
Number of days back from current date the Inventory
searches for and consumes the forecast demand
against sales order demand if no forecast quantities
are available for the Sales Order Date
The quantity consumed equals the Sales Order
Quantity
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Forecasting
Forward Consumption Days
Number of days forward from the current date
Inventory search for and consumes forecast demand
if no forecast quantities are available for the Sales
Order Date
The quantity consumed equals the Sales Order
Quantity
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Forecasting
Forecasts can be:
Copied
Modified while merging them into new ones
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Forecasting
Forecasts can be imported from external sources
In the Oracle Inventory system, these imports are
facilitated through the Forecast Interfaces
Forecasts may be imported from other systems to
load into the Master Schedules of the local system
The various ways of importing forecasts follow:
Copy Forecasts
Modify Forecasts
Explode Forecasts
Review Forecasts
Purge Forecasts