Oracle Inventory Shital

Oracle EBS Training
On
Inventory Module
-Shital Kendre
KTCS,Pune
Agenda
Introduction to Oracle inventory management

Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
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 management
Oracle Inventory enables users to satisfy a companys 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 Integration with other modules
Oracle
WIP
Oracle Cost
Management
Oracle
Flow Manufacturing
Oracle
Project
Manufacturing
External
Systems
Oracle
Purchasing
Oracle
Inventory
Oracle Order
Management
Oracle
Engineering
Oracle Master
Scheduling/MRP
Oracle
Shipping
Oracle Bills
of Material
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.
Category Grouping
Inventory Category Set
Finished Good
Purchasing Category Set
Hardware
Craig Category Set
PC
Other
Subassembly
Software
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

Inventory Transaction
Business Flow
Material Flow
Receive Goods
WIP
Move Goods
Ship Goods
Purchasing
Inventory
MRP
Order Entry
Agenda

Inventory Setup
Inventory Controls
Inventory Planning

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.

Organization
Structure
BG
Set of Books
LE
LE
LE
LE
OU
OU
IO
IO
IO
IO
OU
OU
IO
IO
IO
IO
OU
OU
IO
IO
IO
IO
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.
Business Group
Set of Books
Legal Entity
OU
Inventory
Organization
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 3Cs
(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
Business Group
Set of Books
Legal Entity
OU
Inventory
Organization
GRE/Legal Entity
Business Group
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.
Set of Books
Legal Entity
OU
Inventory
Organization
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.
Business Group
Set of Books
Legal Entity
OU
Inventory
Organization
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, semifinished 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
Agenda

Inventory Setup
Inventory Controls
Inventory Planning
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
Inventory Organizations are made up of one or more subinventories which can be made up of one
or more locators
Organization
Subinventory
Locator
Inventory Setup
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
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.
Agenda

Inventory Setup
Inventory Controls
Inventory Planning

Setting up item Definition
1
Choose Item Attribute Control Levels
2
Define
UOMs
Define
Status
Control
Levels
Define
Categories and
Category Sets
Define
Statuses
3
Define
Items
Create
Templates
Define
Catalogs

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.

Status Attributes and Functionality
Status Attribute
Stockable
Functional Area
Inventory
Functionality
Allows to store the item in an
asset subinventory
Transactable
Inventory, Order
Management,
Purchasing, WIP
Purchasable
Purchasing
Allows to place the item on a

purchase order
Build in WIP
Work in Process
Allows to build the item on a

discrete job and/or a repetitive
schedule
Allows to transact the item

Inventory, OM, PO and WIP

Status Attributes and Functionality
Status Attribute
Functional Area
Functionality
Allows to place the item on a
sales order
Customer Orders
Enabled
Order Management
Internal Orders
Enabled
Inventory, Order
Management,
Purchasing
Allows to create an internal

sales order for the item
BOM Allowed
Bills of Material
Allows to create a bill of

material for the item
Invoice Enabled
Receivables
Allows to create an invoice

for the item

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 Items
An item is a part or service that is purchased, sold, planned, manufactured, stocked, distributed, or
prototyped. The following Modules use items:
Inventory
Purchasing
Attributes
Attributes
Service
Order Management
Attributes
Attributes
Work in Process
Bills of Material
Attributes
Attributes
Receiving
Items
Costing
Attributes
Attributes
Lead Time
MRP/MPS
Attributes
Attributes
Planning
Invoicing
Attributes
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

Defining Items
Organization Assignment
Agenda

Inventory Setup
Inventory Controls
Inventory Planning
Inventory Controls
Overview
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.
Inventory Controls
Locator setup
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.
Inventory Controls
Revision Control
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.
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
Lot Control
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 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 Control
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.
Inventory Controls
Lot Control
Disabled Lots:
Disabling a lot only prevents it from appearing in
a list of values when performing receipt
transactions.
Inventory Controls
Serial Control
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
Inventory Controls
Serial Control
Generating 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 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.
Agenda

Inventory Setup
Inventory Controls
Inventory Planning
Overview
Understanding of Transaction Types
Overview of Inventory Transactions
Miscellaneous Transactions
Subinventory Transfer
Inter Organization Transfer
Receipts
Move Orders
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.
Transaction
Source Type
Transaction
Action
Transaction
Type
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.
Miscellaneous
Issue
Miscellaneous
Receipt
Subinventory
Organization
Locator
Subinventory
Locator
Subinventory
Transfer
Locator
Subinventory
Transfer
Locator
Direct
Interorganization
Transfer
Interorganization
Transfer by Way
of Intransit
Organization
Miscellaneous Transactions
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 - Transaction Lines
Enter the
quantity to
be adjusted
Lot or serial number

can be entered if item
is a serial controlled or
Lot Controlled
Subinventory transfer
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 Transaction Lines
Enter source
subinventory
Enter
destination
subinventory
Saving the record will complete the transaction.
Enter
Quantity
Inter Org Transfer
You need to define shipping network before doing inter
organization transfer
Pune
Mumbai
Organization
Organization
Use Intransit
Inventory
(FOB = Receiving)
Use Intransit
Inventory
(FOB = Shipping)
Austin
Organization
Delhi
Organization
Require
Internal Order
to Ship
Direct
Transfer
Pune
Organization
Inter Org Transfer
Direct Interorganization Transfers
We can use a direct interorganization 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.
InterOrganization 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 interorganization
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.
Receipts
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.
Move Orders
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 Order Type
Move Order
Requisition
Replenishment
Move Orders
Pick Wave
Move Orders
Transaction Type
Generation & Approval
Account
Transfer
Subinventory
Transfer
Manually Generated
Optional Approval
Processing
Kanban
Min Max
Replenishment
Count
Automatically
Generated
Pre-approved
Ready for
Transaction
Sales Order Pick

Internal Order
Pick
Pre approved
Print Pick Slip
Move Order Process Flow
Approve move
Move order
requisition
created
order
Move order locates

material sources
Pick
Ticket
In case of shortage
move order
can be re-planned
Put away
Destination
location
Picking
Source
location
Agenda

Inventory Setup
Inventory Controls
Inventory Planning

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.

Cycle Counting
ABC Classification of items
Define cycle count header
Update cycle-count items
Schedule items to count
Generate count requests
Enter cycle counts
Approve cycle counts

ABC Classification
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
ABC Analysis
Define ABC compilation
Define ABC classes
Define ABC group
Assign items to ABC classes
Update class assignments
Purge ABC information

ABC Classification
ABC Compilation
Press Compile
to generate
compile results
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

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

Cycle Counting
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

Physical Inventory
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

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.
Agenda

Inventory Setup
Inventory Controls
Inventory Planning
Inventory Planning
Planning methods:
Performing Min-Max planning
Performing reorder-point planning
Subinventory replenishment planning
Creating and executing Kanban cards
Inventory Planning
Inventory Planning
MIN MAX Planning
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
Determine minimum
and maximum
quantities
Enter minimum quantity
Enter maximum quantity
Do you want
specific lot
increments?
Yes
Enter fixed lot increments
No
Enter minimum order quantity
Run min-max report
Enter maximum order quantity
Inventory Planning
Inventory Planning
MIN MAX Planning
The following equation represents when you should order:
Quantity Available= Min QTY- on hand quantity + quantity on order
If 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
Enter item planning attributes.
Define subinventory-level minmax information (optional).
Run the Min-max report.
Inventory Planning
Inventory Planning
MIN MAX Planning
Set up the appropriate profile
value for requisition approval.
Select an Inventory Planning

method.
Specify a planning level (either

Organization or Subinventory).
Enter the following:

Min-max minimum quantity
Min-max maximum quantity
Fixed-lot-size multiplier
Minimum order quantity
Maximum order quantity
Inventory Planning
Inventory Planning
MIN MAX Planning
Enter the
minimum and
maximum
quantity
Enter the source type as

supplier if you want to
generate purchase
requisitions. Enter
subinventory or organization
if you want to generate move
orders
Enter the planning

method as 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
MIN MAX Planning
If you dont 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
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
Inventory Planning
Oracle Inventory Processes
Reorder-Point
Min-Max
Planning
Planning
Subinventory
Replenishment
Kanban
Populate Requisition
Interface
Oracle Purchasing Processes
Run Req. Import
Create Purchase
Requisition
Create Internal
Requisition
Create Purchase
Order
Create Internal
Order
Oracle Order Entry Processes
Run Order Import
Inventory Planning
Inventory Planning
Reorder-point 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 stock
Replenishment lead time
item demand
Order cost
Carrying cost
Inventory Planning
Quantity
Reorder Point
Safety Stock
Time
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
Reorder Point Planning Steps
Enter item planning attributes.
Define safety stocks.

Forecast item demand
Forecast Item Demand
Run Reorder-point report.
Inventory Planning
Inventory Planning
Item Planning Attributes
Select Reorder-point as the

inventory planning method.
Enter a carrying cost percent.
Enter an order cost.
Specify a fixed-lot size

multiplier.
Specify a minimum-order
quantity.
Specify a maximum-order
quantity.
Inventory Planning
Inventory Planning
Enter Lead Times
Enter preprocessing lead time.
Enter processing lead time.
Enter postprocessing lead time.
Inventory Planning
Inventory Planning
Item Planning Attributes
Set your planning

method
Safety Stock
method
Set your lead

times on the
lead time tab
Inventory Planning
Inventory Planning
Entering Safety Stock
You can select one of the following three safety stock calculation methods for each item:
User-defined quantity
You 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 percentage
To use the user-defined percentage method, you must use the Reload Safety Stock window and specify the
following information for the item:
A forecast
A safety stock percent
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 forecast
A service level percent
safety stock = Z 1.25 (mean absolute deviation)
where Z is the appropriate value from a table of standard normal
distribution, corresponding to the service level. The mean absolute deviation is a measure of how the
forecast demand deviates form the actual demand.
Thank you.

Oracle Inventory Shital

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Oracle EBS Training

Introduction to Oracle inventory management

Modeling organization structures

Tracking perpetual inventory

Maintaining accurate on-hand balances

Planning material replenishments

Forecasting anticipated demand

Inventory Integration with other modules

Item Statuses and Attributes

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.

Purchasing Category Set

Craig Category Set

Introduction to Oracle inventory

Introduction to Oracle inventory management

Inventory Enterprise Structure

Inventory Enterprise Structure

Inventory Enterprise Structure

Inventory Enterprise Structure

Inventory Enterprise Structure

Inventory Enterprise Structure

Inventory Enterprise Structure

Inventory Enterprise Structure

Inventory Organization Structure

Inventory Enterprise Structure

Inventory Enterprise Structure

Introduction to Oracle inventory management

Introduction to Oracle inventory management

Creating and Maintaining Items

Creating and Maintaining Items

Creating and Maintaining Items

Allows to place the item on a

Allows to build the item on a

Allows to transact the item

Creating and Maintaining Items

Allows to create an internal

Allows to create a bill of

Allows to create an invoice

Creating and Maintaining Items

Creating and Maintaining Items

Creating and Maintaining Items

Creating and Maintaining Items

ATO Option Class

PTO Option Class

Outside Processing Item

Creating and Maintaining Items

Creating and Maintaining Items

Creating and Maintaining Items

Creating and Maintaining Items

Creating and Maintaining Items

Creating and Maintaining Items

Introduction to Oracle inventory management

Introduction to Oracle inventory management

If you want to enter

Lot or serial number

The type can be Subinventory

Subinventory Transfer Transaction Lines

Saving the record will complete the transaction.

InterOrganization Transfers via Intransit Inventory

Generation & Approval

Sales Order Pick

Move order locates

Introduction to Oracle inventory management