2. Agenda
Current MRP Blueprint
• Overview of Process
• MRP Workbench
• How On Time Delivery is Affected
Inventory Planning Options
• Min-Max
• Reorder Point Planning
Demonstrate MRP Planning
3. MRP
MRP is what you do to get supply to meet demand
In Oracle it is limited to a single inventory organization
MRP can be setup to run overnight and provide updates based on
the previous days production and demand changes
Material requirements planning (MRP) calculates net requirements
from gross requirements by evaluating:
• the master schedule
• bills of material
• scheduled receipts
• on-hand inventory balances
• lead times
• order modifiers
It then plans replenishments by creating a set of recommendations to
release or reschedule orders for material based on net material
requirements. These planned recommendations are stated in:
• discrete quantities, with due dates
4. The MRP Process
Develop Forecast Load Forcast
Generate Master
Schedule
Existing Sales
Orders
Generate Master
Requirements
Plan
Release Planned
Orders from
Planners
Workbench
Generate
Purchase Orders
Generate Work
Orders
Ship Product
Inventory
5. Forecasting
Defining Manual Forecasts
Defining Forecasts from Sales
History
Forecast Consumption
Time Buckets
You can estimate future
demand for items using any
combination of historical,
statistical, and intuitive
forecasting techniques.
You can create multiple
forecasts and group
complimenting forecasts into
forecast sets.
Forecasts are consumed each
time your customers place
sales order demand for a
forecasted product.
You can load forecasts,
together with sales orders, into
master demand and production
schedules, and use the master
schedules to drive material
requirements planning.
6. All forecasts must belong
to a forecast set. You can
vary your bucket
requirements by period,
days or weeks. You can
enter multiple buckets by
adding an end date. The
source information
indicates if the demand
comes from manual or
other forms of imput.
You can also veiw
consumptions of the
forecast.
7. Master Scheduling
Demand Management
Scheduling Production
Validating the Production Schedule
Managing the Production
Schedule
Demand Types
• item forecasts
• spares demand
• sales orders
• internal requisitions
The MDS is a statement of
demand and contains details of the
anticipated shipment schedule.
You can consolidate all sources of
demand into a master demand
schedule to represent a statement
of total anticipated shipments.
The master demand schedule
provides an extra level of control
that allows you to view and modify
your statement of demand before
creating a detailed production
schedule.
You can use the time–phased
master demand schedule as input
to the master production
scheduling process or the material
requirements planning process.
8. Master Scheduling
Your MDS can include SO
demand and forecast
demand. In the one
shown, only SO demand is
loaded.
You can use the Reliefs
form to see which orders
have relieved the MDS.
9. Planner Workbench
Review your resources
Review item details
Review of supply/demand details
Review components, using
assemblies, and end assemblies
Review the horizontal, material,
and capacity plan
Display a summary supply and
demand
Implement and maintain planned
orders
Create planned orders manually
Implement repetitive schedules
Release implemented orders
You can review and implement
recommendations suggested by
the planning process with the
Planner Workbench.
You can selectively implement
these recommendations as new
and rescheduled orders, and
release all or some of them.
12. MRP Pegging
Here we see how you can drill down into the pegging
information and see the demand causing the need for the
order.
13. MRP Horizontal Plan
In this slide we can view the Horizontal Plan. The
preferences have been modified to show only relevant
information for this part.
15. MRP Exception Details
You can use the exception details from to find which demand
is at risk because of late supply.
16. How On Time Delivery is Affected
MRP Schedules Based on Order Deliver minus Lead
Times
MRP is very Sensitive to Data Accuracy
MRP Produces an Exceptions List on every MRP Run
MRP Helps Maintain a Consistent Production Schedule
but Un-forecasted Demand can Effect OTD
19. Min/Max Planning
With min-max planning, you specify minimum and
maximum inventory levels for your items. When the
inventory level for an item (on-hand quantities plus
quantities on order) drops below the minimum, Oracle
Inventory suggests a new purchase requisition, internal
requisition, move order, or job to bring the balance back
up to the maximum.
21. Reorder Point Planning
Reorder point planning uses demand forecasts to decide when to
order a new quantity to avoid dipping into safety stock. Reorder point
planning suggests a new order for an item when the available
quantity-on-hand quantity plus planned receipts-drops below the
item’s safety stock level plus forecast demand for the item during its
replenishment lead time. The suggested order quantity is an
economic order quantity that minimizes the total cost of ordering and
carrying inventory.
23. Kanban Replenishment
Kanban is a means of supporting pull-based
replenishment in manufacturing systems. A Kanban
system is a self-regulating pull system that leads to
shorter lead times and reduced inventory. Kanban
systems are typically applied to items that have relatively
constant demand and medium-to-high production
volume.
The system includes an API that can be called by
external systems, such as bar code readers, to trigger
replenishment signals.
25. Advanced Supply Chain Planning
Oracle Advanced Supply Chain Planning (ASCP) is a
comprehensive, Internet-based planning solution that
decides when and where supplies (for example,
inventory, purchase orders and work orders) should be
deployed within an extended supply chain.
ASCP works across many inventory organizations
ASCP can run on a separate server to allow for multiple
planning runs during day or evening
