Oracle Inventory

Oracle Applications 11i
Training On
Oracle Inventory
Agenda
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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.
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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
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Inventory Integration with other modules
Oracle
WIP
Oracle Cost
Management
Oracle
Flow Manufacturing
Oracle
Purchasing
Oracle
Project
Manufacturing
External
Systems
Oracle
Inventory
Oracle Order
Management
Oracle
Engineering
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Oracle
Shipping
Oracle Bills
of Material
Oracle Master
Scheduling/MRP
Inventory Integration with finance modules
External
Systems
Oracle
Payables
Oracle
General
Ledger
Oracle
Inventory
Oracle
Receivables
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Oracle
Assets
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Introduction to Oracle inventory

management
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.
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management
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.
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UOM Class = Weight

UOM
UOM Conversion
Base UOM
lbs
kg
g
1 kg = 2.208 X lbs
Yes
No
No
1 g = 0.002208 X lbs
UOM Interclass Conversion

Item
Keyboard
Destination Destination
Source
Source
Base UOM UOM Class Conversion Base UOM UOM Class
lbs
Weight
2 Each = 1 lb
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Each
Quantity

management
Organization Calendar
workday calendar must be defined in Inventory if the
following are to be performed :
inventory forecasting ,reorder-point planning, available-topromise analysis or cycle counting.
Inventory automatically generates a workday pattern (the
base calendar) that includes all days, including nonworkdays, between the start and end dates specified.
workday exceptions can be assigned to the base calendar to
denote holidays, schedule maintenance, or overtime.
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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.
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Category Grouping
Inventory
Category Set
Finished Good
Purchasing
Category Set
Hardware
Craig Category
Set
PC
Other
Subassembly
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Software

Inventory Controls
With Oracle Inventory locator, revision, lot, and serial
number control can be implemented.
Any combination of the four controls (locator, revision,
lot, and serial number) can be implemented for each
item. Inventory controls are optional for all items.
User can choose to implement inventory controls for
specific items.
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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.
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Business Flow
Material Flow
Receive Goods
WIP
Move Goods
Ship Goods
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Purchasing
Inventory
MRP
Order Entry
Agenda
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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.
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Organization Structure
BG
Set of Books
LE
LE
LE
LE
OU
OU
IO
IO
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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.
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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.
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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
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Business Group
Set of Books
Legal Entity
OU
Inventory
Organization
GRE/Legal Entity
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.
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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.
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Business Group
Set of Books
Legal Entity
OU
Inventory
Organization
Inventory Organization Structure
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Inventory Organization Structure
Organization
Subinventories
Locators
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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.
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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
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Review Question
What are the 3 Cs in Set of Books?
Currency
Calendar
Chart of Account
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Agenda
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Inventory Setup
Inventory Controls
Inventory Planning
Inventory Setup
Required Setup Steps
Step
Activity
Define Item Flexfield
Global
Define Item Categories Flexfield
Global
Define Item Catalog Group Flexfield
Global
Define Stock Locators Flexfield
Global
Define Account Aliases Flexfield
Global
Define Sales Orders Flexfield
Global
Define Organizations
* Defined Once Globally or for each organization

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Level *
Organization
Inventory Setup
Step
Activity
Organization access
Defining Intercompany Relations
Global
10
Define Unit of Measure Classes
Global
11
Define Subinventories
12
Define Item Attribute Controls
13
Define Categories
Either Level
14
Define Category Sets
Either Level

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Level *
Organization
Organization
Global
Inventory Setup
Step
Activity
15
Define Default Category Sets
Global
16
Define Statuses
Global
17
Define Cost Types
Global
18
Define Accounting Periods
Global
19
Set Profile Options
Global
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Level *
Inventory Setup
Flexfield Definitions
* Refer System Administrator & AOL training for Flexfield set up
Flexfield Name
Table Name
Comment
Account Aliases
MTL_GENERIC_DISPOSITIONS
It supports just one structure
Item Catalogs
MTL_ITEM_CATALOG_GROUPS
It supports only one structure
Item Categories
MTL_CATEGORIES
This should be defined before defining

items. There Can be multiple structures
per instance
Sales Orders
MTL_SALES_ORDERS
Defined as Order Number, Order Type,

and Order Source to make each
transaction unique. Its defined before
placing demand /reservations
Stock Locators
MTL_ITEM_LOCATIONS
Used to capture more information

about stock locators and items
System Items (Items MTL_SYSTEM_ITEMS

Flexfield)
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This should be configured before

defining items. OE: Item Flexfield
profile option should be set to specify
the Item Flexfield structure that will be
used for Oracle applications.
Inventory Setup
Profile Options
Oracle Inventory users use the Personal Profile Values

window to set profile values only at the user level.
System administrators use the System Profile Values
window to set profile values at the site, application,
responsibility, and user levels.
Required profiles have no default; they require input
from a user or an administrator. Optional profiles have
defaults which may be accepted or manually
overridden.
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Inventory Setup
These profiles are updateable at all levels:
Profile Option
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Reqd
Default
INV: Allow Expense to Asset Transaction
No
Yes
INV: Default Item Status
No
Active
INV: Default Primary Unit of Measure
No
Each
INV: Dynamic Precision Option
No
-9,999,999.00
INV: Inter-Organization Currency Conv
No
Corporate
INV: Item Master Flexfield
Yes
No Default
INV: MinMax Reorder Approval
No
Approved
Inventory Setup
Profile Option
INV: Proj Misc Trans Expenditure Type INV:
RC Line Failure
INV: Requisition Approval
INV: Save Search Items
INV: Updateable Customer Item
INV: Updateable Item Name
TP:INV: Cycle Count Approvals Form
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Reqd
Default
No
User Entered
No
Continue
Processing
No
Approved
No
No
No
No
No
No
No
Concurrent
Processing
Inventory Setup
Profile Option
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Default
TP:INV: Cycle Count Entries Form
No
TP:INV: Enter Replenishment Count Form
No
TP:INV: Inter-Organization Transfer Form
No
TP:INV: Misc Issue and Receipt Form
No
Concurrent
Processing
Concurrent
Processing
Online
Processing
Online
Processing
No
Immediate Concurrent Processing
TP:INV: Transaction Processing Mode
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Reqd
TP:INV: Transfer Between SubInv Form
No
TP:INV: Update Average Cost Form
No
Online
Processing
Online
Processing
Inventory Setup
Profile Option
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Reqd
Default
TP:INV: Server Side Online Processing
No
Concurrent
Processing
INV: CCEOI Commit Point
Yes
No Default
INV: Override Negative Qty for Backflush
No
No
INV: Order Transact Form
No
Online
Processing
INV: Purchasing by Revision
No
Yes
INV: Debug Trace
Yes
No Default
INV: Debug File (Include complete path)
Yes
No Default
Inventory Setup

Profile Option
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Reqd
Default
INV: FIFO for Original Receipt Date
No
No
INV: Debug Level
Yes
No Default
INV: Detail Serial Numbers
No
No
Inventory Setup
These profiles are updateable only at the Site level:
Profile Option
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Reqd
Default
INV: Accounting Category Set
Yes
No Default
INV: Capable to Promise
Yes
No Default
INV: External ATP
Yes
No Default
INV: Use Catalog Name in Item Desc.
No
No
INV: Minimum Number of Quantity Trees
No
500
INV: CCEOI Workers
Yes
No Default
INV: Detect Truncation on UOM Conversn
Yes
No Default
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
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Inventory Setup
Organization Setup
(N)> Inventory>Setup>Organizations>Locations
Flagged as global,
physical locations of Employees
locations are
and Organizations. Locations are
available to all
Business Groups
shared between Inventory,

Purchasing and Human
Resources. Each organization
can be associated with only one
location. One or more
organizations can be associated
with the same location
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Inventory Setup
Organization Setup
(N)>setup>Organizations> Organizations
organization classification is used
to describe the general purpose of
organization. Examples are
Inventory Org, GRE / Legal Entity,
and HR Organization. Inventory
Organization classification is used
for inventory management.
Organization location field links a location to

an organization to a location. This is a must for
Legal Entity organizations
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Inventory Setup
Organization Setup
(N)>setup>Organizations> Organizations
Link Between Organization

& Legal entity/Set of Books
& Operating Unit.
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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.
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Inventory Setup
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Inventory Setup
Organization Setup
(N)>setup>Organizations> Parameters
This must be the first organization to be

defined as this is a required field in
parameters. Later it can be changed. There
For forecasting, planning, available-
can be any number of Item masters in an
to-promise analysis, or cycle
instance but it is advised that there is only
counting, workday calendar must be
one item master unless absolutely
defined. This calendar is entered in
necessary.
the parameters screen in order to be

used by the above functions. When
defining a calendar system assumes
a workday pattern that includes all
days, between the start and end
dates unless specified.
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Item master can be common across

operating units, legal entity & SOB. It can
be optionally common across business
groups also. It is also advised that there are
no transactions carried in an item master
Inventory Setup
Organization Setup
Locator control option

determines at which level
the locator is controlled.
Options are None, Pre
specified, Dynamic &
Controlled at subinventory
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Decides Whether the inventory

balance in the organization can
go below zero. If enabled ,does
allow the inventory to go below
zero.
Inventory Setup
Organization Setup
Costing organization determines
which is the costing organization for
the organization in question. However
Determines the costing
for an average costing organization
method used in the
the costing organization is the same
organization. Options are
organization i.e. the costs cannot be
Standard costing,
shared.
Average costing, FIFO &

LIFO
Valuation accounts for the
organization. Once any
transaction takes place in
an organization ,these
accounts cannot be
changed in an Average
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costing scenario.
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Indicate whether all transactions

are posted in detail or summary to
the general ledger.
Inventory Setup
Organization Setup
Enforces unique lot numbers across
items, if set. The options are Across
items & None
option for lot number

generation. It can be generated
at item level, org level or User
defined
Can be generated at org
level or at item level
option for serial number uniqueness.

Options are Within organization, Within
inventory & items Across organizations
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Inventory Setup
Organization Access
This setup controls access to

organizations based on the user
responsibility assigned to a user by
the system administrator. If
implemented for one user
responsibility, it is then required for
all other user responsibilities
accessing the same organization.
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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
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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.
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Inventory Setup
Subinventory set up
(N) INV> Setup>Organizations>Subinventories
Indicates whether
to include items in
this subinventory in
Indicates whether each
ATP calculations.
transaction for this

subinventory updates
the quantity on hand
for the subinventory
Indicates whether to maintain
Indicates whether to
the value of this subinventory
include this subinventory
on the balance sheet
while performing available

to reserve calculations.
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Inventory Setup
Subinventory set up
Can only be selected if
locator control is set as
Determined at subinventory
level in the Organization
Parameters window
Indicate whether the planning

process uses the onhand
balance of these
subinventory items as
available inventory
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indicates the priority with which items

are picked from this subinventory,
relative to another subinventory,
where a given item resides.
Inventory Setup
Subinventory set up
These valuation
accounts are used
in a standard
costing scenario.
For average costing
org, system picks
up the accounts
from org level
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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.
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Inventory Setup
Workday Calendar
(N) INV> Setup>Organizations>Calendar
workday calendar consists of a start date, and

end date, and on and off days that follow one
or more defined workday patterns. A workday
calendar can also include shift information and
exception dates, such as holidays/scheduled
down time. Workday exceptions identify
deviations to the workday calendar. Shift
exceptions identify deviations for a shift.
Note: Before using a calendar it must
be built using tools>build option
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Attention: Shift exceptions take precedence

over workday exceptions.
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.
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Inventory Setup
Units of Measure
Perform the following steps to define multiple UOMs and
set up conversions:
Define UOM classes
Define multiple non base
UOMs for each class
Define intraclass
conversions
Define interclass
conversions
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Define one base UOM

for each UOM class
Inventory Setup
Units of Measure Classes
(N) Inventory>Setup>Units of Measure>Classes
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Inventory Setup
Units of Measure (UOM)
(N) Inventory>Setup>Units of Measure>Units 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 used to specify
the number of units of an
item.
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Inventory Setup
Units of Measure Conversions
(N) Inventory>Setup>Units of Measure>Conversions
unit of measure conversion

is a mathematical
relationship between two
different units of measure.
For example, 10 Kilograms
= 1 Each, or 2.2 pounds = 1
kilogram.
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If items are
transacted in UOM
belonging to classes
other than their
primary UOM class,
conversions between
the base units of
measure in different
UOM classes must
be defined
Agenda
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Inventory Setup
Inventory Controls
Inventory Planning

Setting up item Definition
1
Choose Item Attribute Control Levels
2
Define
UOMs
Define
Status
Control
Levels
Define
Statuses
Define
Categories
and
Category
Sets
3
Define
Items
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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.
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Item Attributes
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.
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Item Attributes
(N) Inventory>Setup>Items >Attribute Controls

Control level can be
determined using this
field
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Status Attributes
Each status attribute
is dependent on at least one
other attribute. For example
Stockable attribute cannot be
set to yes if Inventory Item
attribute is set to No.
Defaults Value: Value of this attribute defaults when assigning the status to an item. Can
be changed.
Not Used: Use neither default nor status control.
Sets Value: Value of this attribute defaults when assigning the status to an item. Once
assigned the default cannot be changed.
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Status Attributes and Functionality
Status Attribute
Stockable
Transactable
Purchasable
Build in WIP
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Functional Area
Inventory
Inventory, Order
Management,
Purchasing, WIP
Purchasing
Work in Process
Functionality
Allows to store the item in
an asset subinventory
Allows to transact the
item Inventory, OM, PO
and WIP
Allows to place the
item on a purchase
order
Allows to build the item
on a discrete job and/or a
repetitive schedule

Status Attributes and Functionality
Status Attribute
Functional Area
Functionality
Customer Orders
Enabled
Order Management
Allows to place the

item on a sales order
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
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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.
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Item Status
(N) Inventory>Setup>Items>Status Codes
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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.
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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
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Item Templates
Users can define their own templates or predefined templates
include:
ATO Model
ATO Item
Kit
PTO Model
Phantom Item
Purchased
Subassembly
Freight
ATO Option Class
Finished Good
Outside Processing Item PTO Option Class
Planning Item
Reference Item
Product Family
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Supply Item

Item Templates
(N) Inventory>Setup>Items>Templates
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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.
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Item Categories - Setup
Define the Flexfield structures for the item categories Flexfield.
Define categories.
Define category sets and assign the categories to the sets. Each set can
use a different Flexfield definition if required.
Assign default category sets to each functional area, like Purchasing,
Planning and Inventory
Assign items to categories. An item can be assigned to only one category
within a set.
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Item Categories - Define Categories
(N) Inventory>Setup>items>Categories>Category Codes
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Item Categories - Define Category sets
(N) Inventory>Setup>items>Categories>Category sets
This option should only be

enabled for user defined
category sets. Functional
Category is assigned to category
set from here.
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category sets cannot have

same item with multiple
categories within itself.

Item Categories - Assign items to Categories
(N) Inventory>Setup>items>Categories>Category sets>Assign
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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.
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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
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Items
Costing
Attributes
Attributes
Lead Time
MRP/MPS
Attributes
Attributes
Planning
Invoicing
Attributes
Attributes

Steps to Setup, Define and Maintain items
1
Copy templates
Copy items
Enter attribute values
Enable in child organizations
Update organization level attributes
Define item costs
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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.
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Organization Assignment and Organization Item
Item can be enabled in all child organizations under master
organization or child organizations where the item to be used is
chosen. Inventory propagates item to all organizations in which
the item is to be defined.
Organizational attributes for item attributes which are enabled in
that organization, can be entered or changed which are enabled in
that organization. For example, go to an organization to choose
reorder point planning for an item, and then go to another
organization and choose Min-Max planning for the same item.
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Defining Items
(N) Inventory>Items>Master Items
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Defining Items
Organization Assignment
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Defining Item Relationships
The following types of relationships can be defined for items:
Item cross-references
Substitute items
Related items
Manufacturer part numbers
Customer item numbers
Relationships between items can be defined to improve
purchasing management and item searching capabilities.
Substitute items can be received in Oracle Purchasing.
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Defining Item Relationships
(N) Inventory>Items>Item Relationships
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Crossreference types
Crossreference types define relationships between items
and entities such as old item numbers or supplier item
numbers. For example, a crossreference type Old can be
created to track the old item numbers , and a cross-reference
type Supplier to track supplier part numbers.
multiple cross-reference types can be assigned to a single
item.
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Crossreference types
(N) Inventory>Items>Cross References
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Customer Items
(N) Inventory>Items>Customer Items>Customer Items
Allows the entry of
customer part
numbers and the
customer(s) they are
associated with.
These items can
also be associated
with commodity
codes and container
types
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Customer Item Cross References
(N) Inventory>Items>Customer Items>Customer Items
Used to define
cross references
between
inventory items
and the customer
items defined
above.
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Agenda
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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.
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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.
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Inventory Controls
Locator setup
Indicates the priority for

picking items from this
locator relative to another
Subinventory to
which the locator
belongs
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locator.
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.
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Inventory Controls
Revision Control
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.
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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.
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Inventory Controls
Lot Control
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.
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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.
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Inventory Controls
Lot Control
An Expired Lot:
is not considered as on-hand supply when performing minmax, reorder point or MRP planning calculations.
cannot be reserved for a date beyond the expiration date.
can be transacted and is included in on-hand quantities.
is included in all inquiries and reports.
is included in a cycle count and count entry and
adjustments are allowed.
is included in a physical inventory and tag entry and
adjustments are allowed.
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Inventory Controls
Lot Control
Disabled Lots:
Disabling a lot only prevents it
from appearing in a list of values
when performing receipt
transactions.
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Inventory Controls
Lot Control
A Disabled Lot:
is included in available to transact, available to promise and
available to reserve calculations.
is included as on-hand supply when performing min-max,
reorder point or MRP planning calculations.
is included as on-hand in all inquiries and reports, including
inventory valuation reports.
can be transacted with Inventory functions and the
Transaction Open Interface.
can be reserved.
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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
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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.
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Inventory Controls
Serial Control
Generating Serial Numbers
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.
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Agenda
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Inventory Setup
Inventory Controls
Inventory Planning
nventory Transactions
Overview
Understanding of Transaction Types
Overview of Inventory Transactions
Miscellaneous Transactions
Subinventory Transfer
Inter Organization Transfer
Receipts
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Move Orders
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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
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System Defined Transaction Types
System defined transaction

type codes for different
inventory transactions. Each
transaction type is linked to
source type and action
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User Defined Transaction Types
Use user defined terminology to

define transaction type. The
transaction type can be only
linked to pre seeded values of
source type and action
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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.
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Types of Inventory Transactions
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.
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Miscellaneous
Issue
Miscellaneous
Receipt
Subinventory
Organization
Locator
Locator
Locator
Subinventory
Transfer
Direct
Interorganization
Transfer
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Subinventory
Transfer
Locator
Interorganization
Transfer by Way
of Intransit
Organization
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Subinventory
Miscellaneous Transactions
Select the
transaction type
Account for
passing
adjustment
transactions
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If you want to enter

transaction line by
serial number for
serialized item
check this box
Initial loading of item on-hand quantities when you

start implementing Oracle Inventory
Scrapping items by issuing them to expense
accounts denoting scrap
Issuing items to individuals, departments, or projects
Receiving items that were acquired by assorted
means (without purchase orders)
Entering adjustments and corrections to system
quantities due to theft, vandalism, loss, shelf-life
expiration, or inaccurate record keeping
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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
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Subinventory transfer
Use the Subinventory transfer window to:
Transfer material within your current organization
between subinventories, or between two locators
within the same subinventory
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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
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Subinventory Transfer Transaction Lines
Enter source
subinventory
Enter
destination
subinventory
Saving the record will complete the transaction.

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Enter
Quantity
Inter Org Transfer
We can perform interorganization transfers as direct or
in transit shipments.
Goods
intransit
that havedepartedfromthe
inventory
orstock
dispatch
intransit
, loading
, or shipping
point but havenot yet arrivedat the
receipt
, offloading
, or deliverypoint
. Alsocalled
We can transfer one or more items in a single

transaction. We can also transfer partial quantities of the
same item to different subinventories and locators in a
single transaction.
We can also transfer expense and asset items from one
organization to another using in transit inventory
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Inter Org Transfer
You need to define shipping network before doing inter
organization transfer
Pune
Mumbai
Organization
Organization
Use Intransit
Inventory
(FOB = Receiving)
Austin
Organization
Delhi
Organization
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Require
Internal Order
to Ship
Use Intransit
Inventory
(FOB = Shipping)
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.
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Inter Org 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.
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Inter Org Transfer Shipping Network
Check this box if

internal order is
required
Select Transfer
type as Intransit or
Direct
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Enter FOB as receipt or

shipment to identify who
owns the inventory after
shipment has been made
There are three options for transfer

charge.
Predefined % of transaction value. The %
is maintained here. The other two options
are requested % or requested value. In
this case value is mentioned at the time
of entering Inter ORG transaction
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Enter the accounts for

transfer credit and PPV if
destination organization uses
standard cost
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On these form maintain

Inter ORG receivable
and payable account
Inter Org Transfer - In transit
Enter Source &

Destination
Organization
Select type as
Intransit or Direct
shipment
Enter the order number
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Subinventory in
the shipping
organization
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Subinventory in
the receiving
organization
As transaction type in Inter

ORG order was in transit
shipment, the inventory is
shown in transit after shipping
Note: Receiving for Inter ORG orders will be covered as a part of receiving transactions
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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 invento
Return delivered items to receiving
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Note: As part of inventory training only standard receiving

transaction will be covered with receipt routing as Direct
Delivery
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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.
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Receipts
Use the Receipt Header window to enter header information

for all types of receipts.
Enter packing slip

number
Enter other information like shipped date, number of containers etc.

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Receipts
Use the Receipts window to enter receipt line information.
Enter the receipt

quantity
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Default
subinventory
from PO. It can
be overridden
As routing is
direct receipt,
the inventory is
delivered on
saving the
transaction
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.
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Move Orders
Move Order Type
Move Order
Requisition
Transaction Type
Account
Transfer
Subinventory
Transfer
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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
Replenishment
Move Orders
Pick Wave
Move Orders
Generation & Approval
Move Order Process Flow
Approve
Move order move
order
requisition
created
Move order locates

material sources
Pick
Ticket
In case of shortage
move order
can be re-planned
Put away
Destination
location
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Picking
Source
location
Move Order Header
Default source
subinventory
for move order
Select
Transaction
Type
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Move Order Lines
Enter Item and

for transfer
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Default transaction
type from header. It
can be overridden
Quantity to be
transferred
Move Order Allocation
Press Allocate to generate

reservation from source
subinventory to destination
subinventory
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After allocation reservation

can be viewed and updated
manually if required.
Transact Move Orders
Print Pick List for
Picker
Press Transact to move the

inventory from source to
destination subinventory
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Agenda
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Inventory Setup
Inventory Controls
Inventory Planning
nventory Accuracy Control

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

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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
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ABC Classification
ABC Compilation- Descending Value Report
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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.
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ABC Classification
ABC Classes
Define class
names for your
ABC Classification
purpose
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ABC Classification
Define ABC Assignment Group
Define Group name to

link compile class and
set of ABC Classes
defined
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ABC Classification
Define ABC Assignment Group
Link ABC Classes to

ABC assignment
group
Give a priority to all

classes. The class
with lowest priority is
assumed to have the
highest rank.
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ABC Classification
ABC Item Assignments
Choose the sequence

value from ABC
descending value
report to assign a
range of items to class
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Shows % of total items

and % of total value
assigned to a specific
class with in an
Organization

ABC Classification
Updating Item Assignments
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ABC assignments generated

automatically by assigning cut
off sequence numbers for each
class. If required classes can
be changed manually
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Cycle Counting
Maintain Cycle Count
If items not scheduled

for counting to be
included
If automatic recount
required for out of
tolerance items
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Adjustment account to
store variance amount
by which inventory is
adjusted

Cycle Counting
Maintain Cycle Count
Cycle counting to be
allowed for serialized
items or not. If
allowed will there be
multiple serial
numbers per request
or one serial number
per request
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Scheduling
daily or
weekly or by
periods
What Details to be
printed. Quantity
only or quantity
with serial
numbers

Cycle Counting
Maintain Cycle Count Header
Tolerances set by
quantity, value and
hot/miss analysis
ABC group
lined for
identifying item
classes
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Use this option as

re-initialization to
upload items for the
first time from ABC
group. Make it to
update to add new
items added in ABC
group to cycle count
items

Cycle Counting
Cycle Count Classes
Cycle count class
specific tolerances
can be maintained
here. If it is not
maintained here it is
taken from cycle
count header
Mentions the
numbers of times
the item to be
counted in a year
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Cycle Counting
Cycle Count Items
Item specific
quantity tolerance
can be maintained
here
Cycle count classes and item
generated from ABC initialization
at the time of linking cycle count
to ABC group
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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.
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Cycle Counting
Generate Cycle Count Request
Cycle count Scheduler for
automatic scheduling
Generate Cycle count

request to generate
cycle count entries
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Cycle Counting
Cycle Counting List Report
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Print this report to show items

scheduled for cycle counting in a
specific period. This report is given
to people who physically count
items

Cycle Counting
Cycle Count Entries
Enter the quantity

counted at the locator
in the warehouse
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Cycle Counting
Approve Cycle Count
Approve cycle count entries that

are out of tolerance. The entries
with variance with in tolerance
will be approved by system.
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Cycle Counting
Cycle Count Entries and Adjustments Report:
This report shows all cycle count entries for a specified time period. It analyzes the
number of cycle count transactions you make against an item, and the number of units
you actually adjust. The report also calculates the value, in your functional currency, of
the adjustments to inventory.
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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
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Physical Inventory
Define Physical Inventory
Set the option

for approval of
physical
inventory tags
Tolerances for Quantity and

value
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Use this option when

tags are generated
outside oracle inventory
Click snapshot to
generate the snapshot
of inventory on hand for
count subinventories

Physical Inventory
Generate Tags
You can generate

blank tags for stock
points not recorded in
your system
Starting tag number and in

what order you want to
increment to generate the next
tag number
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Generates a unique tag for

each unique combination
of item, sub inventory,
locator, revision, lot, serial
number

Physical Inventory
Physical Inventory Tags Counts
Enter the quantity physically

counted at specific location with
in the warehouse
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You can void a tag if

damaged or lost. If
default tag is void it
sets the inventory to
zero for that SKU

Physical Inventory
Approve Counts
Approval option- Always the system requires approval of all
counts entered. You must approve or reject each adjustment
before running the physical adjustments program. After the
system adjusts all the approved counts the status of the
adjustment changes to Posted
Approval option If Out of Tolerance the system requires approval
of all adjustments exceeding the tolerances entered in the
physical inventory definition. You must accept or reject each of
these adjustments before running the physical inventory
adjustments program. After the system adjusts all the approved
counts the status of the adjustment changes to Posted.
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Physical Inventory
Approve Counts
Approve or reject
the count
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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.
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Physical Inventory
Perform Physical Inventory Adjustments
Account for passing

transactions due to
variance in system and
counted quantity
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Physical Inventory
Purge Physical Inventory
Purging tags only: You can purge
all tags associated with a physical
inventory definition. If irreversible
mistakes are made in the countentry 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.
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Inventory Planning
Planning methods:
Performing reorder-point planning
Performing Min-Max planning
Subinventory replenishment planning
Creating and executing Kanban cards
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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.
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Inventory Planning
MIN MAX Planning
1 . 0 D e fin e P la n n in g
a ttr ib u te s f o r M in - M a x
p la n n e d it e m s a t O r g
le v e l
I t e m A v a ila b le q u a n t it y
b e l o w M i n q u a n t it y ?
No
S to p
Yes
No
O rg
3 .0 D e fin e P la n n in g
a tt rib u te s fo r M in M a x p la n n e d it e m s
a t S u b In v le v e l
2 .0 R u n M in -M a x
P la n n in g R e p o r t a t
O r g le v e l
4 .0 R u n M in - M a x
P la n n in g R e p o r t a t
S u b In v le v e l
CompanyConfidential
Y es
M in - M a x P l a n n i n g a t O r g
o r S u b i n v e n t o r y le v e l ?
S u p p lie r
183
A u to
R e p l e n is h m e n t?
M in - M a x r e p o r t
Buy
M ake or Buy ?
7 .0 C re a te
U n r e le a s e d J o b
S o u rc e ?
S u p p lie r
In te rn a l
5 .0 C re a te
P u rc h a s e
R e q u is itio n s
6 .0 C re a te
In te r n a l
R e q u is itio n s
6 .1 C re a te
In te r n a l
R e q u is it io n s
M ake
Inventory Planning
MIN MAX Planning
Determine minimum
and maximum
quantities
Enter minimum quantity
Enter maximum quantity
Do you want
specific lot
increments?
No
Run min-max report

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Yes
Enter fixed lot increments
Enter minimum order quantity
Enter maximum order quantity
Inventory 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
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Inventory Planning
MIN MAX Planning
Enter item planning
attributes.
Define subinventorylevel min-max
information (optional).
Run the Min-max
report.
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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
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Inventory Planning
MIN MAX Planning
Enter the
minimum and
maximum
quantity
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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
MIN MAX 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
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Demand cut off

date for demand
calculation
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
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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
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Run Order Import
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
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Inventory Planning
Quantity
Reorder Point
Safety Stock
Time
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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.
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Inventory Planning
Reorder Point Planning Steps

Enter item planning
attributes.
Define safety stocks.

Forecast item demand
Forecast Item Demand
Run Reorder-point
report.
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Inventory Planning
Item Planning Attributes
Select Reorder-point
as the inventory
planning method.
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Enter a carrying cost

percent.
Enter an order cost.
Specify a fixed-lot
size multiplier.
Specify a minimumorder quantity.
Specify a maximumorder quantity.
Inventory Planning
Enter Lead Times
Enter preprocessing
lead time.
Enter processing lead
time.
Enter postprocessing
lead time.
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Inventory Planning
Item Planning Attributes
Set your planning

method
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Safety Stock
method
Set your lead

times on the
lead time tab
Inventory Planning
Reorder-point 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
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Inventory Planning
Reorder-point planning -Entering Safety Stock
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.
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Inventory Planning
Entering Safety Stock- User Defined
Enter a default item if

multiple entries are to
be maintained for the
same item
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User defined
safety stock
Inventory Planning
Entering Safety Stock
Method as MAD or safety
stock %
Enter the forecast for

MAD calculation
If method is safety stock %
enter safety stock %. F method
is MAD enter service level
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Inventory Planning
Define a forecast set for your
forecasting scenario. With in your
forecast set define your forecast
name
Choose a item that

had a planning
method as reorder
point
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Inventory Planning
Enter your forecast

bucket. It can be daily,
week or periods
Enter the forecast quantity

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Inventory Planning
Reorder Point Program
Give your demand supply

and supply cut off date. Till
this date your forecast will be
taken for reorder point
calculation
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Use this option as no if

you dont want to
generate requisitions
and want to generate
report for items will
quantity less than
reorder point
Enter the forecast

set to be used for
EOQ and reorder
point calculation
Inventory Planning
Reorder Point Program
Mention what supply should

be considered as availability
for reorder point calculation
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CompanyConfidential

Oracle Inventory

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Oracle Applications 11i

Introduction to Oracle inventory management