r12 ASCP Fundamentals Chapter 13 Planning Strategies

Planning Strategies
Chapter 14
Copyright Oracle Corporation, 2005. All rights reserved.
Planning Strategies
Chapter 15 - Page 1
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Obectives
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"od#le Overvie$% &opics
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&opic Overvie$% Si(#lation )
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&opic Overvie$% Si(#lation ))
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Si(#lation
Simulation
Simulate your plans if you need to:
Run what-if scenarios to find alternatives that improve supply chain operations.
Adjust plans to reflect current supplier information and other frequently changing
information.
Graphically compare the results of multiple simulation scenarios to choose the plan that
est meets your performance ojectives.
!ou can:
Simulate changes to material and resource capacity simultaneously
"opy and version your plan
Save and compare e#ceptions
$isually highlight changes
Simulate changes to demand priorities% add new demands
&irm% modify% add supplies
Run and compare multiple simulation scenarios
Simulate the effects of changing sources
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Chapter 15 - Page +
Constraint/Bottleneck Management
'n general% it is more effective to resolve the most constrained resource (ottlenec)* efore the
least constrained resource. Resource refers to manufacturing resources% transportation
resources% and suppliers. Similarly% it is more logical to wor) on the high priority demands
efore wor)ing on low priority ones.
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Si(#lation "odes
Simulation Modes
!ou can run simulations in two modes:
+et change: Generates only those plan outputs that have changed compared to the
aseline plan
&ull re-plan: "auses a new simulated plan to e completely rerun. Any change that can e
simulated in net change mode can also e simulated with a full re-plan.
!ou can simulate changes to plan output on the planning instance% for e#ample% supply and
demand% with net-change mode. &or changes to entities and information that you ma)e on
the source instance% you must ma)e the changes% run collections% and then use the full re-
plan mode.
Net Change Simulation
+et-change simulation refers to the following process:
Generate a aseline plan.
,se -lanner .or)ench to ma)e changes to the plan or a copy of the plan.
Run either an online re-plan or atch re-plan.
/here are two modes of net change simulation:
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0nline: .hen minor changes are made in the plan% net-change simulation can revise
plans within seconds.
1atch: 1atch update has the same effect as an online re-plan ut ta)es the form of a
concurrent request and releases the terminal so that the user can continue wor)ing.
0nline planner is faster if you are the only planner performing the simulations ut it does loc)
out other users from the plan. 'f more than one planner is performing simulations on the same
plan% use atch planner.
Full Re-plan Simulation
Simulations can e run y changing plan inputs and parameters% collecting% and then
completely rerunning the new% simulated plan. /he new simulated plan can e saved as a new
plan and compared to the original (aseline* plan. !ou can run and compare multiple
simulation scenarios. &or e#ample% you could generate an unconstrained plan and a constrained
plan and then compare )ey performance indicator results.
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Plan Scenarios
Plan Scenarios
!ou can wor) with plan scenarios in two ways:
"opying a -lan to Another +amed Scenario
- /he first approach is to ma)e a copy of a aseline plan saved as a new plan name.
/hen modify the plan in any appropriate way and then run either a full re-plan or a
net change re-plan on the modified copy. 1oth the copy and the original plan are
fully preserved for any level of detailed comparison.
- +ote: !ou must create the new plan name efore copying a plan to the new plan
name.
"reating a Series of -lan $ersions
- /he second method is to run a series of online versions of the same plan. 1efore
running an online simulation% select Save Actions from the -lanner .or)ench
-lan menu. /his saves the e#ception messages and a count of the numer of
e#ceptions under a version numer. +ew e#ception messages are contained in the
version named "urrent. /he messages and counts for the current version can then
e compared to the e#ception messages and e#ception count saved under previous
versions. ,sing this facility% only the e#ception messages for each scenario are
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saved. 0ther details% such as 2-'s and planned orders% are lost for all versions
e#cept for the version named "urrent.
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Co(paring Alternative Plans
Comparing Alternative Plans
/he -lanner .or)ench provides a graphical online comparison of multiple plans.
/he 2ey 'ndicators ta displays a side-y-side comparison of )ey performance indicators of
the plans and simulations you select from the tree. !ou can see:
'mpact on on-time delivery
'mpact on inventory turnover ratio
'mpact on margin percentage
'mpact on resource utili3ation
/he Actions ta provides quantified results with regard to numer and type of e#ception
messages.
!ou can copy plans% version your plans% save and compare e#ceptions% and visually highlight
changes.
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)(ple(enting Plan Changes
Implementing Plan Changes
1ased on the results from simulations% planners can decide what changes to implement in the
e#ecution system. 4ost of the improvement adjustments or changes will need to e made in
the source instance e#cept for supplier capacity% supplier fle#-fences% and sourcing rules.
&or sourcing rules in the destination organi3ation% changes need to e made in the destination
instance. &or sourcing rules% defined in the source% changes will need to e made in the source
instance.
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.et Change Si(#lation Process
Net Change Simulation Process
!ou must generate at least one advanced supply chain aseline plan efore you egin
simulation activity.
!ou can create a simulation plan name y saving a copy of either the aseline plan or another
simulation plan under a different name. /hen you manipulate the new plan to model the
changes involved in your scenario. 5epending on the types of changes you have implemented%
you run the simulation using either the net-change or full re-plan simulation mode. .hen the
simulation is completed% you can compare it to other plans y selecting them from the -lanner
.or)ench tree.
Capacity Modiications
A capacity modification is a temporary change to the availale capacity of a resource% for
e#ample% wor) on a specific Saturday. !ou record a capacity modification for a shift of a
resource. .hen you plan a resource that has capacity modifications% the planning process
might schedule wor) on a different day that it would have scheduled the same wor) if there
was no capacity modification.
A simulation set is the lael for a group of capacity modifications needed for a specific
purpose% for e#ample% a vacation schedule or an end-of-quarter overtime schedule. !ou may
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simulate capacity changes y performing a capacity plan using a certain simulation set. 0nce
you are satisfied with the changes% you ma)e them permanent y such actions as contacting
employees to schedule overtime wor)% schedule less wor)% and approving or denying requests
for time off. 'f the changes relate to more systemic or long-term modifications% you ma)e them
permanent y changing wor) days and shift times in the wor)day calendar and increasing or
decreasing the numer of resources.
/he e#ample aove shows the four types of capacity modifications:
Add wor) day
5elete wor) day
Add capacity (you can add oth numer of hours and numer of resource units*
Reduce capacity (you can reduce oth numer of hours and numer of resource units*
Simulation Set
/ypically% you use simulation sets for a simulation plan% and the planner compares the aseline
plan (which does not use the simulation set* with the simulation set plan. -lanners specify the
simulation set in the plan options organi3ations ta and the simulation set must e specified for
each organi3ation. /his cannot e changed for net-change replan.
/he Simulation Set field in the 0rgani3ations taed region of the -lan 0ptions window
provides a pull-down list of named simulation sets that have een set up in the
instance:organi3ation.
Simulation sets are not required in order to run full re-plan simulations.
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Changes /or .et Change Si(#lation
Changes or Net Change Simulation
5uring on-line planning% a planner can modify the following information:
Supplier "apacity
- Add or remove supplier capacity
- 4odify dates and quantities
Resource Availaility
- Add new resource availaility
- 4odify dates and quantities
- Add new shifts
Supplies
- Add new planned orders
- &irm planned orders% discrete jos% and purchase order
- 4odify quantities% dates% sources% and alternates
5emands
- Add new 4anual 45S
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- 4odify order priority
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Online 0e(and Changes
!nline "emand Changes
45S% sales order% or forecast dates and quantities can e changed on the destination (A-S*
system% or they can e changed on the source (transaction* system and recollected for a
permanent change. !ou can modify quantities and due dates in:
&orecasts
Sales orders
4aster demand schedules
!ou can alter the demand priority of any demand. 0racle AS"- then modifies the e#isting
schedule to accommodate changes to demand priority. .hen you assign the highest priority%
planning will always try to satisfy the demand on time or within the ma#imum late days you
specified. 5emand priority can e changed on the destination side for simulation. 4a)e
changes on the source side for a permanent change of priority.
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Online S#pply Changes
!nline Supply Changes
+ew firm planned orders
&irming and changing quantity or date of e#isting planned orders
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Online S#pplier Capacity Changes
!nline Supplier Capacity Changes
!ou can adjust a supplier6s material capacity and processing lead time on the Supplier-'tem
Attriutes window. &or e#ample% you can change daily capacity from 788 units to 988 units
over a specified time frame. "hange this on the source side for a permanent change of supplier
capacity.
!ou can change the planned order status to firm% and change the planned order quantity and
due date and then see the result in an online simulation.
!ou can simulate changed due dates or canceled wor) orders and purchase orders online% ut
full re-plan mode is needed to simulate changes in order quantity. !ou can change the due date
and cancel wor) orders and purchase orders on the destination side and then run an online
simulation. 0r you can change the due date and cancel and change order quantities on the
source side within .'- or -urchasing% respectively% and run a full re-plan simulation.
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Online 1eso#rce Changes
!nline Resource Changes
Resource attriutes can e changed on the source or the destination side. !ou can simulate
simultaneous changes to material and resource availaility and specify changes in resource
availaility over a user-specified time frame. !ou can modify resource availaility y:
Adding or removing shifts
"hanging the numer of availale machines and wor)ers
"hoosing alternative resources
!ou can change material and resource availaility simultaneously.
!ou can use resource tolerance fences to change resource availaility over a user-specified
time frame.
+ote: Simulating the addition of a new type of resource requires a full re-plan.
/he resource attriutes listed in the figure can e changed on the destination side and simulated
online. !ou can also change the resource attriutes listed in the figure and add a new resource
on the source side and then run a full re-plan simulation.
Planning Strategies
1#nning Online .et Change
Running !nline Net Change Re-Plan
/he following descries the process for running the online planner.
4a)e a copy of your aseline or simulation plan and save it under another name. So that you
do not lose e#isting plans% ma)e modifications only to the new copy of the plan.
7. Start the 0nline -lanner and load snapshot into memory (+* 4enu : -lan : Start 0nline
-lanner
- Select the copy of the plan in the -lanner .or)ench.
- "lic) 02 to ac)nowledge that starting the online session will prohiit access to this
plan y other users.
- 4a)e a note of the concurrent request '5 and clic) 02.
- "hec) the 0nline -lanner status (4* -lan : Status.
- .hile the online planner loads the data into memory% you will see the 0nline
-lanner Status window. /his window displays the progress of the loading and
indicates when the session is ready for planning.
- .hen the session is ready for planning (the green light is on*% close the window to
return to the -lanner .or)ench. !our online planner session is now active.
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- "hec) the 0nline -lanner status (4* -lan : Status.
9. Simulate scenario changes.
- +avigate to the attriute for which you are modeling a change (+* .or)ench (4*
/ools : Supply;5emand.
- 4a)e simulated changes to the plan from within the -lanner .or)ench.
- Save actions (4* -lan : Save actions.
- +ote the version numer of your saved actions and clic) 02.
<. Run the 0nline -lanner (4* -lan : -lan.
=. >valuate and compare scenarios.
?. As desired% return to step < and adjust data.
@. Stop the 0nline -lanner session (4* -lan : Stop. "lic) 02.
+ote: 5o not stop the online planner until the simulation is complete.
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2atch .et Change
#atch Net Change
1atch net change:
Replans the same changes as online net change
Runs as a concurrent process that loc)s out everyone from accessing the plan. Aowever%
efore the concurrent process% multiple planners can access and change the same plan. 'n
comparison% when one starts the online planner% everyone is loc)ed out while that planner is
changing and replanning the plan.
-roduces the same output information as online net change
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3ndo S#((ary 4indo$
$ndo Summary %indo&
!ou can undo the changes that you made in a previous online planner session. .hile one
planner is ma)ing changes ma)ing changes% everyone else is loc)ed out of access to that plan..
1oo)mar)s
"lic) on the Add 1oo)mar) utton and give your oo)mar) a name in the window that
pops up. !ou will see a new row appear in the ,ndo Summary window aove your other
records. 't will show the name of your oo)mar) in the first column.
Go ac) to the -lanner .or)ench% ma)e some changes% and run online planner.
1ring the ,ndo Summary window to the foreground. +otice that there are rows to tell
you when the online planner was started and run.
Select your oo)mar) and clic) the undo utton. A confirmation o# will appear% select
yes. /his will undo all of the changes you have made since you created the oo)mar).
!ou also could have selected the online planner row and selected undo and it would have
undone all of the changes made since online planner was run.
,ndo 5etail .indow
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"lic) on the "hange 5etail utton to open the "hange 5etail window. !ou will see the
specifics aout your change such as the field changed (i.e. Buantity;Rate* and the old
value and new value.
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5#ll 1e-plan Si(#lation Process
Full Re-plan Simulation Process
/here are changes that cannot e simulated y using the online planner. 'nstead% a full
regeneration of the plan is required to ma)e the simulation calculations. /hese are fundamental
changes% such as changing plan ojectives and changing the transaction (source* system data
that must e collected efore the A"S- system can calculate the effect of the changes.
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Chapter 15 - Page 2,
Changes /or 5#ll 1e-plan Si(#lation
Changes or Full Re-plan Simulation
/hese changes must e made on the source side and collected% and simulated in full re-plan
mode.
.or) orders:
"hange a wor) order quantity.
"hange wor) order status to firm or not firm.
,se alternative ills:
- "reate and delete components.
- Adjust component use quantities.
- "hange 104 and 104 component effectivity dates and enale;disale
designators.
,se alternative routings:
- Add and remove items.
- Adjust resource usage in routing operations.
- "hange the production line rate.
- >nale or disale routings and change routing effectivity dates.
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Chapter 15 - Page 2-
-urchase 0rders
"hange a purchase order quantity.
Add an alternative supplier.
"hange supplier priorities (ran)ing*.
"hange supplied material costs.
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Chapter 15 - Page !0
Practice Overvie$% Per/or(ing Si(#lation
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Practice - Per/or(ing Si(#lation
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Practice - Per/or(ing Si(#lation
!vervie&
/his practice covers performing simulation.
'as(s
Responsi)ility * Advanced Supply Chain Planner
7. +avigate to the -lanner .or)ench window.
9. Select plan ##>"".
Creating a #oo(mar(
<. "reate a oo)mar) named ##>#ceptions1oo)mar) to )eep trac) of the changes you are
going to ma)e later in this practice.
=. Aighlight your ##>"" plan in the +avigator.
?. "hoose -lan from the menu toolar and select Add ,ndo 1oo)mar) (4* -lan : Add ,ndo
oo)mar).
@. +ame the oo)mar) ##>#ceptions1oo)mar) and select 02.
C. $erify the oo)mar) was created. "hoose -lan from the menu toolar and select ,ndo
Summary (4* -lan : ,ndo Summary.
D. /he ,ndo Summary window displays with your newly created oo)mar) as the first row.
E. "lose out of the ,ndo Summary window.
Starting the !nline Planner
78. Start the 0nline -lanner for your ##>"" plan.
-lease coordinate this tas) with the instructor and the other students in the course. 0nly one
student needs to perform this tas).
77. Aighlight your ##>"" plan in the +avigator and clic) on the Actions ta.
79. "lic) !es in the 5ecision window to find all the records in the folder.
7<. Start the 0nline -lanner.
7=. Select -lan from the menu toolar and choose Start 0nline -lanner (4* -lan : Start 0nline
-lanner.
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Chapter 15 - Page !!
7?. 4a)e note of the Request '5 and select 02.
7@. !ou may receive a "aution window aout the "oncurrent 4anager. Select 02 if you do.
7C. /he 0nline -lanner Status window displays. .hile the online planner loads the data into
memory% you will see the 0nline -lanner Status window.
7D. .hen the session is ready for planning (the green light is on*% close the 0nline -lanner
Status window.
Revie&ing +,ception Messages
7E. Review e#ception messages for your ##>"" plan. +avigate to the >#ception 5etails
window for 0rders sourced from alternate supplier. Review the 'tem and Supply;5emand
information for the first e#ception message listed.
98. $erify your ##>"" plan is highlighted in the +avigator and that you are on the Actions ta.
97. 5oule clic) on Sustitutes and Alternate ,sed in the >#ception Summary window.
99. 5oule clic) on 0rder sourced from alternate supplier.
9<. Review the 'tem and Supply;5emand information for the first e#ception message listed.
9=. Select 'tems. !ou are now in the 'tems window. Review the 'tem information.
9?. Select Sources. !ou are now in the Sources window. !ou can see that item "4@@<97 in
organi3ation 47 is sourced y oth Allied 4anufacturing and 'ndustrial 5ressler.
9@. "lose out of the Sources window and the 'tems windows so you are ac) on the >#ception
5etails window.
9C. "lic) Supply;5emand. !ou are now in the Supply window.
9D. !ou can see a planner order for item "4@@<97 in organi3ation 47 for a quantity of ?E@.
!ou can also review the pegging information y e#panding the tree in the lower pane of the
window.
9E. Remain in the Supply window.
Adding a Ne& Planned !rder
<8. Add a new planned order for item "4@@<97 in the Supply window using the following
information:
0rg /S/:47
'tem "4@@<97
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0rder /ype -lanned 0rder
+ew 5ate /oday6s date
+ew Bty 788
<7. .hile still in the Supply window clic) the +ew icon in the upper left corner of the toolar.
<9. Add a new planned order for item "4@@<97 using the following information:
0rg /S/:47
'tem "4@@<97
+ew Bty 788
<<. Save your wor).
<=. >#it out of the Supply window so you are ac) in the >#ception 5etails window.
Adding Capacity
<?. Add capacity for supplier 'ndustrial 5ressler. 'ncrease capacity to ?88 for the appropriate
time period.
<@. .hile in the >#ception 5etails window clic) Suppliers.
<C. "hange the capacity for those time periods to ?88.
<D. Save your wor).
<E. "lose out of the Supplier "apacity window and the >#ception 5etails window. !ou should
now e in the -lanner .or)ench on the Actions ta.
$sing the $ndo Summary %indo&
=8. Review the changes you have made using the ,ndo Summary window. Also review the
details for the supplier capacity update.
=7. +avigate to the ,ndo Summary window y choosing -lan from the menu and selecting
,ndo Summary (4* -lan : ,ndo Summary.
=9. /he ,ndo Summary window displays.
Planning Strategies
=<. !ou should see your two changes as the first two rows aove the start online planner and
oo)mar) rows.
==. Review the detail for the supplier capacity update.
=?. "lic) 5etail in the ,ndo Summary window.
=@. !ou can see that you increased the capacity for supplier 'ndustrial 5ressler from 988 to ?88.
=C. "lose the ,ndo 5etail window and the ,ndo Summary window so you are ac) in the
-lanner .or)ench on the Actions ta.
Running the #atch Replan
=D. Run the 1atch Replan to see how the new planned order and the increased supplier capacity
will affect your ##>"" plan.
=E. "hoose -lan from the menu toolar and select 1atch Replan (4* -lan : 1atch Replan.
?8. +ote the Request '5 and clic) 02.
?7. $erify the jo completed normally (4* $iew : Requests.
?9. 'f the jo errors out you will not e ale to complete steps ?% @% and C. 4ove to /as) E if
your jo does not complete normally.
?<. >valuate and compare the "onstraind with the ##>"" plan.
?=. Aighlight oth the "onstraind plan and the ##>"" plan in the +avigator and clic) on the
Actions ta.
??. Foo) at the e#ception message count totals for oth plans.
Stopping the !nline Planner
?@. 0nce you are done ma)ing changes and running simulations you need to stop the 0nline
-lanner.
+ote: -lease coordinate this tas) with the instructor and the other students in the course. 0nly
one student needs to perform this tas).
?C. "hoose -lan from the menu toolar and select Stop 0nline -lanner (4* -lan : Stop 0nline
-lanner.
?D. "lic) 02 in the "aution window to stop the online planner.
?E. Release the rescheduled order from the simulation.
@8. $iew the -lan "omparison Report etween plan "onstraind and plan ##>"".
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Chapter 15 - Page !*
@7. $iew the rescheduled orders.
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Chapter 15 - Page !+
Sol#tion 6 Per/or(ing Si(#lation
Responsi)ility * Advanced Supply Chain Planner
7. +avigate to the -lanner .or)ench window.
(+* Supply "hain -lan : .or)ench
9. Select plan ##>"".
$iew y G 'tems
>#pand directory -lans
Select plan ##,nconstrnd
Creating a #oo(mar(
<. "reate a oo)mar) named ##>#ceptions1oo)mar) to )eep trac) of the changes you are
going to ma)e later in this practice.
=. Aighlight your ##>"" plan in the +avigator.
?. "hoose -lan from the menu toolar and select Add ,ndo 1oo)mar) (4* -lan : Add ,ndo
oo)mar).
@. +ame the oo)mar) ##>#ceptions1oo)mar) and select 02.
C. $erify the oo)mar) was created. "hoose -lan from the menu toolar and select ,ndo
Summary (4* -lan : ,ndo Summary.
D. /he ,ndo Summary window displays with your newly created oo)mar) as the first row.
E. "lose out of the ,ndo Summary window.
Starting the !nline Planner
78. Start the 0nline -lanner for your ##>"" plan.
-lease coordinate this tas) with the instructor and the other students in the course. 0nly one
student needs to perform this tas).
77. Aighlight your ##>"" plan in the +avigator and clic) on the Actions ta.
79. "lic) !es in the 5ecision window to find all the records in the folder.
7<. Start the 0nline -lanner.
7=. Select -lan from the menu toolar and choose Start 0nline -lanner (4* -lan : Start 0nline
-lanner.
7?. 4a)e note of the Request '5 and select 02.
Planning Strategies
Chapter 15 - Page !,
7@. !ou may receive a "aution window aout the "oncurrent 4anager. Select 02 if you do.
7C. /he 0nline -lanner Status window displays. .hile the online planner loads the data into
memory% you will see the 0nline -lanner Status window.
7D. .hen the session is ready for planning (the green light is on*% close the 0nline -lanner
Status window.
Revie&ing +,ception Messages
7E. Review e#ception messages for your ##>"" plan. +avigate to the >#ception 5etails
window for 0rders sourced from alternate supplier. Review the 'tem and Supply;5emand
information for the first e#ception message listed.
98. $erify your ##>"" plan is highlighted in the +avigator and that you are on the Actions ta.
97. 5oule clic) on Sustitutes and Alternate ,sed in the >#ception Summary window.
99. 5oule clic) on 0rder sourced from alternate supplier.
9<. Review the 'tem and Supply;5emand information for the first e#ception message listed.
9=. Select 'tems. !ou are now in the 'tems window. Review the 'tem information.
9?. Select Sources. !ou are now in the Sources window. !ou can see that item "4@@<97 in
organi3ation 47 is sourced y oth Allied 4anufacturing and 'ndustrial 5ressler.
9@. "lose out of the Sources window and the 'tems windows so you are ac) on the >#ception
5etails window.
9C. "lic) Supply;5emand. !ou are now in the Supply window.
9D. !ou can see a planner order for item "4@@<97 in organi3ation 47 for a quantity of ?E@.
!ou can also review the pegging information y e#panding the tree in the lower pane of the
window.
9E. Remain in the Supply window.
Adding a Ne& Planned !rder
<8. Add a new planned order for item "4@@<97 in the Supply window using the following
information:
0rg /S/:47
'tem "4@@<97
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Chapter 15 - Page !-
+ew Bty 788
<7. .hile still in the Supply window clic) the +ew icon in the upper left corner of the toolar.
<9. Add a new planned order for item "4@@<97 using the following information:
0rg /S/:47
'tem "4@@<97
+ew Bty 788
<<. Save your wor).
<=. >#it out of the Supply window so you are ac) in the >#ception 5etails window.
Adding Capacity
<?. Add capacity for supplier 'ndustrial 5ressler. 'ncrease capacity to ?88 for the appropriate
time period.
<@. .hile in the >#ception 5etails window clic) Suppliers.
<C. "hange the capacity for those time periods to ?88.
<D. Save your wor).
<E. "lose out of the Supplier "apacity window and the >#ception 5etails window. !ou should
now e in the -lanner .or)ench on the Actions ta.
$sing the $ndo Summary %indo&
=8. Review the changes you have made using the ,ndo Summary window. Also review the
details for the supplier capacity update.
=7. +avigate to the ,ndo Summary window y choosing -lan from the menu and selecting
,ndo Summary (4* -lan : ,ndo Summary.
=9. /he ,ndo Summary window displays.
=<. !ou should see your two changes as the first two rows aove the start online planner and
oo)mar) rows.
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Chapter 15 - Page '0
==. Review the detail for the supplier capacity update.
=?. "lic) 5etail in the ,ndo Summary window.
=@. !ou can see that you increased the capacity for supplier 'ndustrial 5ressler from 988 to ?88.
=C. "lose the ,ndo 5etail window and the ,ndo Summary window so you are ac) in the
-lanner .or)ench on the Actions ta.
Running the #atch Replan
=D. Run the 1atch Replan to see how the new planned order and the increased supplier capacity
will affect your ##>"" plan.
=E. "hoose -lan from the menu toolar and select 1atch Replan (4* -lan : 1atch Replan.
?8. +ote the Request '5 and clic) 02.
?7. $erify the jo completed normally (4* $iew : Requests.
?9. 'f the jo errors out you will not e ale to complete steps ?% @% and C. 4ove to /as) E if
your jo does not complete normally.
?<. >valuate and compare the "onstraind with the ##>"" plan.
?=. Aighlight oth the "onstraind plan and the ##>"" plan in the +avigator and clic) on the
Actions ta.
??. Foo) at the e#ception message count totals for oth plans.
Stopping the !nline Planner
?@. 0nce you are done ma)ing changes and running simulations you need to stop the 0nline
-lanner.
+ote: -lease coordinate this tas) with the instructor and the other students in the course. 0nly
one student needs to perform this tas).
?C. "hoose -lan from the menu toolar and select Stop 0nline -lanner (4* -lan : Stop 0nline
-lanner.
?D. "lic) 02 in the "aution window to stop the online planner.
?E. Release the rescheduled order from the simulation.
+avigate to the -lanner .or)ench navigator
$iew y G 'tems
>#pand plan ##>""
>#pand organi3ation 47
Planning Strategies
>#pand item category "04-0+>+/.>F>"/R'"AF
Select item "4@@<97
"lic) the Supply;5emand icon
(+* /ools : Supply
Select the rescheduled orders
Select &or Release
@8. $iew the -lan "omparison Report etween plan "onstraind and plan ##>"".
(+* Reports : -lan "omparison Report : -lan "omparison
-lan A G "onstraind
-lan 1 G ##>""
@7. $iew the rescheduled orders.
+avigate to the -lanner .or)ench navigator
$iew y G 'tems
>#pand plan ##>""
>#pand organi3ation 47
>#pand item category "04-0+>+/.>F>"/R'"AF
Select item "4@@<97
"lic) the Supply;5emand icon
(+* /ools : Supply
$iew the rescheduled orders
Planning Strategies
&opic Overvie$% Planning Strategies
Planning Strategies
Chapter 15 - Page '!
Plan &ypes
Plan 'ypes
/here are several plan types. ,se these singly or in comination for your gloal% suset% and
individual planning schemes. /he three plan types perform the same requirements e#plosion so
you can virtually use any plan in any planning scheme. /he following is a conventional
suggestion:
'f you are doing gloal supply chain planning% use a material requirements plan.
'f you are planning y susets% use a master production plan for top-level assemly
demand% a master production schedule for top-level assemly supply% and a material
requirements plan for suassemly and purchased item demand and supply
Planning Strategies
Chapter 15 - Page ''
Planning "ethod )te( Attrib#te
Planning Method Item Attri)ute
-lanning 4ethod item attriute specifies the plan type that is used to plan the item. .hen an
item is not planned% it is not included in AS"- calculations.
/he choices are:
+ot planned
4R- planning
4-S planning
4R-;4-- planned
4-S;4-- planned
4-- planned
4aster production plans (4--* consider the following items:
4-- planned items
4-S;4-- planned items
4R-;4-- planned items
4aster production schedules (4-S* considers the following items:
Planning Strategies
4-S planning items
4-S;4-- planning items
4aterial requirements plans (4R-* consider the following items:
4R- planning items
4R-;4-- planned items
All planned items
Planning Strategies
Chapter 15 - Page '*
"#ltiple Organi7ation Planning
Multiple !rgani-ation Planning
!ou can plan your enterprise with a production plan using any of these schemes.
'ndividual planning: -lanning each organi3ation separately. 'n the diagram% the rectangle
illustrates a plan for one organi3ationH you plan each organi3ation individually in the same
manner.
Suset planning: -lanning groups of organi3ations% often y function--for e#ample% all
distriution centers--or y the need for human intervention at a certain point in the supply
chain--for e#ample% a need for human review of the final assemly plan. 'n the diagram% you
plan this enterprise using three suset plans.
Gloal supply chain (holistic* planning: -lanning your entire supply chain at the same time.
0ne of the important implementation decisions that you need to ma)e is the scheme that you
use to plan your supply chain.
Planning Strategies
Chapter 15 - Page '+
8olistic Plans
.olistic Plans
/he holistic approach is advantageous for the following reasons:
Feast planning effort. &ewer plans need to e generated.
5ata consistency. .ithout the single-plan aility% requirements must e repeatedly
transferred upstream within the supply chain to each successive supplier facility. >ach
transfer presents an opportunity for miscommunication or data loss.
Gloal optimi3ation. 'ntelligent tradeoffs etween the performance of individual facilities
(as measured y% for e#ample% plan profit* can e made ecause 0racle AS"- optimi3es
the supply chain planned orders as a whole.
4inimum communication lag
/he effects of decisions made at the highest level of the supply chain are immediately
visile at the lowest level of the supply chain. 'f individual facility plans are used%
there is at least a one planning-run duration lag etween the receipt of requirements
at a facility and the passing of the dependent requirements to the facilityIs suppliers.
4oreover% this lag is often much greater due to differences in wor)ing hours
etween upstream and downstream facilities (for e#ample% if the facilities are in
different time 3ones*. Also% the planning cycles of upstream and downstream
Planning Strategies
Chapter 15 - Page ',
facilities may not e synchroni3ed (for e#ample% customer facility A&7 runs its plan
on 4onday% while supplier facility S&7 runs its plan on Sunday*. /his results in
even longer communication lags.
/he overall effect of plan communication lag is to ma)e the supply chain less
responsive to meeting changes in customer demand.
Planning Strategies
Chapter 15 - Page '-
S#bset Planning Scenarios
Su)set Planning Scenarios
/here are some situations in which it ma)es sense to plan a portion of the supply chain
separately% outside of the overall supply chain 4-- plan.
Scenario 7: ,nique Focal 0jectives 4ust e Respected Along with Gloal 0jectives
Suppose that suassemly plant S&7 which ma)es 479% contains very e#pensive capital
equipment. S&7 is the overall supply chain constraint% so every minute that its resources are
utili3ed rings e#tra profits to the enterprise. Resource utili3ation is the most important
ojective for S&7. &or the supply chain as a whole% however% due to rapid product life cycles
and a fic)le mar)et% inventory turns might e the most important ojective. 'n this situation you
could run a two-stage planning process.
An 4R- for organi3ation S&7 with resource utili3ation as the ojective to generate
planned orders for the portion required at S&7.
A 4-- for the other organi3ations with the aove 4R- as a supply schedule with
inventory turns as the ojective to generate planned orders for the portion required at
S&9.
Scenario 9: Focal Restrictions +ot "aptured in Gloal -lanning 'nputs
Planning Strategies
Suppose that a sucomponent item in plant S&7 has volatile pricing. 'n lieu of implementing
the default planned orders one could plan the supply chain as follows:
4-- plan for all other organi3ations
Foad the 4-- as a demand schedule into a 4aster -roduction Schedule (4-S*.
Run the 4-S.
4anually adjust the planned orders in the 4-S (for e#ample% to pull ahead the orders to
ta)e advantage of a time-sensitive special promotion on the volatile sucomponent.
Run an 4R- for organi3ation S&7 with the adjusted 4-S as input to create planned
orders for components and sucomponents.
Scenario <: Single Gloal 5ata 4odel +ot Availale
/he one-step supply chain planning capaility of 0racle AS"- presumes either the installation
of AS"- as part of an enterprise-wide implementation of 0racle Applications% or the e#istence
of collection programs to pull cross-supply chain transaction data from various 0racle
Applications instances or from legacy systems. "ross-supply chain data must e accessile to
uild the net change snapshot used y 0racle AS"- to generate planned orders.
/his may not e the case. &or e#ample% one or more facilities in the supply chain perform
planning and;or transaction processing on legacy systems not yet integrated to 0racle AS"-
via some sort of collection program. 'n this situation% the renegade facilities must e scheduled
outside the gloal 4-- plan according to the same steps as used in Scenario 9 aove.
Planning Strategies
Pit/alls o/ S#bset Planning
Pitalls o Su)set Planning
/he two principal pitfalls of suset planning (as opposed to holistic planning* are:
Focal optimi3ation as opposed to gloal optimi3ation: /he first pitfall is the fact that
plans that optimi3e individual facilities may not e compatile with the optimum gloal
supply chain plan. /a)e the case of the two distriution centers 5"7 and 5"9. /he way
to ma#imi3e on time delivery for 5"7 is to allocate all production from A&7 to 5"7. /he
same logic holds for 5"9. /he gloal optimum solution% which would e missed via
suset planning% comes from some allocation of A&7 output to oth 5"7 and 5"9.
-lan infeasiility due to supply chain interdependencies A supplier supplies item 197 to
oth suassemly facilities S&7and S&9. 'ndividual plans run for S&7 and S&9 could not
recogni3e the shared capacity at supplier S< and could not evaluate% if the comined S&7
and S&9 demands for 197 are too high% how est to allocate the 197 to S&7 and S&9. 'n
such a situation the S&7 and S&9 individual plans would e infeasile% ut would not
even generate any e#ception notices to alert the planners.
Planning Strategies
9:isting Plans as 0e(and Sched#les
+,isting Plan as "emand Schedules
0nly if you use suset planning schemes% you may need to pass the dependent demand from a
plan higher in the supply chain to a plan lower in the supply chain. /o do this% you specify an
e#isting plan as a demand schedule of a plan you are aout to run.
&or e#ample% you plan to run a single organi3ation master production schedule in final
assemly organi3ation SA" to plan the supply for item A9<D8E. /he demand that you need to
alance against is contained in the planned orders for item A9<D8E in the multi-organi3ation
master production plan that you ran against distriution center organi3ations S&5 and +!5.
Specify the multi-organi3ation master production plan as a demand schedule for the single
organi3ation master production schedule.
Planning Strategies
9:isting Plans as S#pply Sched#les
+,isting Plans as Supply Schedules
'f you use individual or suset planning schemes% you can pass the supply from a plan lower in
the supply chain to a plan higher in the supply chain. /o do this% you specify an e#isting plan as
a supply schedule of a plan you are aout to run.
,se this feature only in the rare circumstance where a lower-level facility constrains your
entire enterprise.
&or e#ample% &a 7 plant is a constraint in your organi3ation due to supplier availaility of a
component. !ou plan &a 7 and the suppliers that supply it in a multi-organi3ation material
requirements plan. .hen you plan &inal Assemly plant in a multi-organi3ation master
production plan% you are constrained y the supply that &a 7 can produce and transfer to it
regardless of the demand on &inal Assemly.
!ou specify the multi-organi3ation material requirements plan as a supply plan for the multi-
organi3ation master production plan. /he multi-organi3ation master production plan wor)s
around the availale supply from &a 7 when it plans &inal Assemly. /herefore% the planners
at Assemly may find demands not met and may need to discuss with planners at &a 7.
Planning Strategies
0ther alternatives to deal with such a situation include increasing capacity of the fa process or
incorporating the constraint at a higher level in the planning process% for e#ample% in the
demand planning process.
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S#((ary
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