R12.x Oracle Inventory Management Fundamentals Volume 1 - Student Guide D60263GC10 Edition 1.0 April 2010 D66274
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Table of Contents R12.x Overview of Oracle Inventory...1-1 R12.x Overview of Oracle Inventory...1-3 Objectives...1-4 Overview of Oracle Inventory...1-5 Inventory Capabilities...1-6 Receipt to Issue Life Cycle...1-8 Receiving Inventory...1-9 Quiz...1-11 Receiving Inventory...1-12 Transferring Inventory...1-13 Issuing Inventory...1-14 Quiz...1-16 Oracle Inventory Application Integration...1-17 Summary...1-21 R12.x Defining Inventory Organizations...2-1 R12.x Defining Inventory Organizations...2-3 Objectives...2-4 Inventory Organizations...2-5 Inventory Organization Structure...2-6 Quiz...2-7 Sample Inventory Organization...2-8 Multi-Organization Structure...2-9 Setting Up Locations...2-10 Defining Organizations...2-11 Quiz...2-12 Inventory Parameters...2-13 Costing Parameters...2-14 Revision, Lot, Serial, and License Plate Number (LPN) Parameters...2-15 ATP, Pick, Item-Sourcing Parameters...2-16 Interorganization Parameters...2-17 Other Account Parameters...2-18 Warehouse Management Parameters...2-19 What Is a Subinventory?...2-20 Defining Subinventories...2-22 Locator Control...2-23 Dynamic and Static Locators...2-24 Quiz...2-25 Subinventory-Locator Relationship...2-26 Locator Flexfield Structure...2-27 Interorganization Shipping Networks...2-28 Shipping Method...2-29 Additional Setup Steps...2-30 Quiz...2-31 Additional Organizational Setups...2-32 Copying Inventory Organizations...2-33 Organization Hierarchy...2-35 Organization Reports...2-37 Profile Options...2-39 Implementation Considerations...2-41 Summary...2-47 R12.x Units of Measure...3-1 i
R12.x Units of Measure...3-3 Objectives...3-4 Units of Measure...3-5 Quiz...3-6 Uses of Units of Measure...3-7 Unit of Measure Class...3-8 Unit of Measure Conversions...3-9 Quiz...3-10 Lot-Level Unit of Measure Conversions...3-11 Units of Measure Setup...3-12 Unit of Measure Reports...3-13 Profile Options...3-14 Organization Parameter Setup...3-15 Implementation Considerations...3-16 Summary...3-17 R12.x Defining and Maintaining Item Fundamentals...4-1 R12.x Defining and Maintaining Item Fundamentals...4-3 Objectives...4-4 What Is an Item?...4-5 Steps to Set Up, Define, and Maintain Items...4-6 Defining Items...4-7 Item Master Organization...4-9 Item Master...4-11 Quiz...4-12 Item Attributes...4-13 Item Attribute Groups...4-14 Item Status...4-15 Unit of Measure Attributes...4-16 Item Statuses and Attributes...4-18 Status Attributes and Functionality...4-19 Status Attribute Interdependencies...4-22 Quiz...4-25 Item Attribute Relationships...4-26 Item Templates...4-27 Creating Item Templates...4-28 Enabling Attributes in a Template...4-30 Organization Assignment and Organization Items...4-31 Control Levels...4-32 Quiz...4-34 Revision Control...4-35 Restricting Items to Subinventories...4-36 Item Relationships...4-37 Categories and Category Sets...4-38 Assigning Items to Categories...4-39 Quiz...4-40 Item Catalogs...4-41 Deletion Constraints and Deletion Groups...4-42 Deletion Constraints...4-43 Item Reports...4-45 Profile Options...4-48 Implementation Considerations...4-54 Summary...4-55 R12.x Lot and Serial Control...5-1 R12.x Lot and Serial Control...5-3 Objective...5-4 Overview of Lot Control...5-5 ii
Child Lots...5-6 Setting Up Lot Control (Organization Parameters)...5-7 Quiz...5-8 Lot Number Uniqueness...5-9 Setting Up Lot Control (Item Attributes)...5-10 Managing Lots...5-12 Quiz...5-14 Expired Lots...5-15 Disabled Lots...5-16 Quiz...5-17 Lot Number Purging...5-18 Cycle Counts Under Lot Control...5-19 Physical Inventory Under Lot Control...5-20 Serial Number Overview...5-21 Generating Serial Numbers...5-22 Serial Uniqueness...5-24 Quiz...5-26 Maintaining Serial Numbers...5-27 Lot Genealogy...5-28 Serial Genealogy...5-29 Lot and Serial Reports...5-30 Profile Options...5-33 Implementation Considerations...5-35 Summary...5-37 R12.x Transaction Setup...6-1 R12.x Transaction Setup...6-3 Objectives...6-4 Overview...6-5 Inventory Transactions...6-6 Move Orders...6-7 Quiz...6-8 Transaction Source Types...6-9 Transaction Action...6-11 Transaction Reasons...6-13 Transaction Types...6-14 Predefined Transaction Types...6-15 Quiz...6-16 Transaction Managers...6-17 Running Transaction Managers...6-18 Creating Picking Rules...6-20 Quiz...6-21 Account Aliases...6-25 Quiz...6-26 Accounting Periods...6-27 Material Shortage Alerts and Notifications...6-28 Setting Up Shortage Alerts and Notifications...6-30 Setting Up for Move Orders...6-31 Setup Steps for Move Orders...6-33 Profile Options...6-35 Implementation Considerations for Shortage Checks...6-40 Implementation Considerations for Move Orders...6-41 Summary...6-42 R12.x Issuing and Transferring Material...7-1 R12.x Issuing and Transferring Material...7-3 Objectives...7-4 Overview of Inventory Transactions...7-5 iii
Inventory Transactions...7-6 Inventory Transactions Without Documents and Requisitions...7-7 Inventory Transactions with Documents and Requisitions...7-8 Control Options and Restrictions...7-9 Miscellaneous Transactions...7-10 Subinventory Transfer...7-11 Quiz...7-12 Inter-Organization Direct Shipment...7-13 Inter-Organization Intransit Shipment...7-14 Quiz...7-16 Managing Receipts...7-17 Quiz...7-19 Express Receipts and Receiving Transactions...7-20 Direct Receipts...7-21 Standard Receipt...7-22 Inspection Receipt...7-23 Move Orders...7-24 Quiz...7-25 Move Orders Process Flow...7-26 Move Order Requisition Approval Process...7-27 Benefits of Managed Material Flow in a Facility...7-29 Move Order Source Types...7-30 Move Order Components...7-32 Generate Move Orders...7-34 Move Order Allocating...7-36 Item Allocation...7-38 Transact Move Orders...7-39 Mobile Transactions...7-40 Managing Shipments...7-41 Transactions Reports...7-42 Summary...7-47 R12.x On-hand and Availability...8-1 R12.x On-hand and Availability...8-3 Objectives...8-4 Overview of On-hand Quantity...8-5 Overview of Reservations...8-6 Overview of Availability...8-7 Quiz...8-8 Reservation Versus Allocation...8-9 Quiz...8-10 Material Workbench...8-11 Display Options...8-12 Quiz...8-14 Viewing Available Items...8-15 Material Workbench Transactions...8-16 What Are Supply and Demand?...8-18 Uses of ATP in Oracle Inventory...8-19 Defining Computation Options...8-20 Specifying Supply and Demand Time Fences...8-22 Specifying Demand Sources...8-26 Specifying Supply Sources...8-28 Setting Up Item and Bills for ATP Checking...8-29 ATP Checking...8-30 Reservation Types...8-31 Supply Types...8-32 Demand Types...8-33 iv
Reserving Material...8-34 Quiz...8-36 Reservation Management - Transfer Supply...8-37 Reservation Management - Transfer Demand...8-38 On-hand and Availability Reports...8-39 Profile Options...8-40 Implementation Considerations...8-42 Summary...8-43 R12.x Material Status...9-1 R12.x Material Status...9-3 Objectives...9-4 Material Status...9-5 Quiz...9-6 Material Status Control Levels...9-7 Quiz...9-8 Material Status Transactions...9-9 Quiz...9-10 Cumulative Effective Status...9-11 Examples of Material Status...9-12 Setting Up Material Status Control...9-13 Defining Item Material Status Control...9-14 Assigning Material Status Control to Subinventories and Locators...9-15 Assigning Planning Statuses...9-16 Disabling Material Statuses...9-17 Quiz...9-18 Material Status Reports...9-19 Profile Options...9-20 Implementation Considerations...9-21 Summary...9-22 R12.x Replenishment Fundamentals...10-1 R12.x Replenishment Fundamentals...10-3 Objectives...10-4 Overview of Inventory Planning...10-5 Order Planning...10-6 Quiz...10-7 How Much to Order...10-8 Replenishment Process for Intra-Org Supply Sources...10-9 Replenishment Process for Supplier Supply Sources...10-10 Replenishment Process for Inter-Org Supply Sources...10-11 Replenishment Process for Production Supply Sources...10-12 Replenishment Methods...10-13 Overview of Inventory Forecasting...10-14 Forecast Types...10-16 Quiz...10-17 Forecast Setup and Maintenance...10-18 Oracle Inventory Replenishment Methods...10-19 Replenishment Method Levels...10-20 Safety Stock...10-21 Economic Order Quantity...10-22 Overview of Reorder-Point Planning...10-23 Uses of Reorder-Point Planning...10-24 Quiz...10-25 Reorder-Point Planning Steps...10-26 Performing Reorder-Point Planning...10-27 Overview of Min-Max Planning...10-29 Quiz...10-30 v
Uses of Min-Max Planning...10-31 Min-Max Planning...10-32 Min-Max Planning: How Much to Order?...10-33 Min-Max Planning Steps...10-34 Item Planning Attributes...10-35 Min-Max Planning Setup Procedure...10-36 Selecting a Planning Level...10-37 Entering Planning Attributes...10-38 Submitting the Min-Max Planning Requests...10-39 Overview of Replenishment Counting...10-41 Uses of Replenishment Counting...10-42 Quiz...10-43 Replenishment Planning Steps...10-44 Subinventories Window...10-46 Item Subinventories Window...10-47 Item Subinventories: Order Modifier Tab...10-48 Replenishment Count Headers...10-49 Replenishment Count Lines...10-50 Processing Replenishment Counts...10-52 Mobile Replenishment Count Overview...10-53 Overview of PAR Counting...10-54 Processing PAR Counts...10-55 Reorder Quantity for PAR Count...10-56 Overview of Kanban Replenishment...10-58 Kanban Cards...10-60 Kanban Planned Items...10-61 Kanban Cards...10-62 Kanban Supply Status...10-64 Kanban Replenishment Sources...10-65 Kanban Card Printing...10-66 Planning and Replenishment Reports...10-67 Profile Options...10-69 Implementation Considerations...10-71 Summary...10-74 R12.x Inventory Accuracy Fundamentals...11-1 R12.x Inventory Accuracy Fundamentals...11-3 Objectives...11-4 Overview of Inventory Accuracy...11-5 Overview of ABC Analysis...11-6 Quiz...11-7 Defining an ABC Analysis...11-8 Defining and Running an ABC Compilation...11-9 Quiz...11-10 ABC Compilation Criteria...11-11 ABC Valuation Scope...11-13 Defining ABC Groups...11-14 Defining ABC Classes...11-15 Quiz...11-16 ABC Item Assignments...11-17 Cycle Counting Overview...11-19 Quiz...11-20 Defining and Maintaining a Cycle Count...11-21 Cycle Count Approval Tolerance...11-22 Approval Tolerances...11-23 Hit/Miss Tolerance...11-25 Measurement Errors...11-26 vi
Cycle Count Items...11-27 Automatic Scheduling...11-29 Manual Scheduling...11-30 Count Requests...11-31 Entering Cycle Counts...11-33 Cycle Count Open Interface...11-34 Count Adjustments and Approvals...11-35 Automatic Recounts...11-36 Approving Cycle Counts and Adjustments...11-37 Mobile Inventory Accuracy Overview...11-39 Physical Inventory Overview...11-40 Why Perform Physical Inventories?...11-41 Defining Physical Inventories...11-42 Physical Inventory Tags...11-43 Inventory Snapshots...11-45 Entering Physical Inventory Counts...11-47 Voiding Tags...11-49 Quiz...11-50 Approval Tolerances...11-51 Physical Inventory Adjustments...11-52 Accuracy Reports...11-53 Profile Options...11-59 Implementation Considerations...11-60 Summary...11-63 R12.x Table Information...12-1 R12.x Table Information...12-3 Objectives...12-4 Organization Tables...12-5 Subinventories and Locator Tables...12-6 Item Master Tables...12-8 Item Status Tables...12-10 Item Categories Tables...12-12 Item Reservation Tables...12-14 Inventory Transaction Tables...12-16 Using the etrm to View Technical Information...12-18 Quiz...12-20 Summary...12-21 vii