BizTech Blog

What is Advanced Supply Chain Planning?

Posted by Bob Bullman

Find me on:

Mar 18, 2013 9:27:00 AM

As a follow-up to my prior Advanced Supply Chain Planning (ASCP) post, I decided to provide a more detailed write-up.

What is ASCPA, and what does it do?

The most basic usage of the Oracle ASCP is the generation of planned orders for an entire supply chain within a single multi-organization supply chain plan. “It’s a holistic plan covering of the entire supply chain.”

The following describes some of the major elements to consider in the planning process.

Demand quantity = (forecast + actual sales orders) for each of the time buckets in the planning horizon.

The plan output contains planned order quantities, start dates, and completion dates for all of its components and sub-components. One the more useful field is compression days. This is the number of days that needs to be made-up compared with the standard lead time. If the lead time is ten days, and you need the quantity in 5 days, the compression days would be 5. The forecast represents the forecast demand. The sales order represents the sales order demand. And lastly, forecast consumption is a process that replaces forecast demand with the sales order demand.

Oracle Advanced Supply Chain Planning considers three streams of independent demand:

  • Safety stock planned demand
  • Forecasts Demand Comes from Oracle Demantra
  • Sales order demand

Oracle ASCP outputs a time-phased supply plan (planned orders) that can then be released directly to the appropriate execution systems: Oracle Purchasing, Oracle Discrete and Process Manufacturing.

The basic process of MPS and MRP:

  • Forecast is published by Demantra
  • Standard collections are Run
  • MPS plan is Launched to See the Forecast, Planned Order, Planned Order Demand,
  • On Hand and Sales Order of the Make Item (Finished Goods)
  • MRP is Launched to get see the Planned Order, Planned Order Demand,
  • On Hand, Purchase Order of the Buy Item ( Ingredients)
  • MRP create planned orders for the safety stock if it is defined in the Item Attributes

Planned Order Calculation will also depend upon the Item Attributes defined, specifically Order Modifiers and the Safety Stock setting.

Order Modifiers:

Order sizing is a set of item attributes that allow you to control the recommended order quantities for planned orders. The planning process creates planned orders using basic lot-for-lot sizing logic. The following are some of the options.

- Fixed Order Quantity - Fixed Lot Multiple - Minimum and Maximum Order Quantity - Fixed Days of Supply - Rounding Order Quantities\\

The goal is for the suggestions to match the replenishment action. If you order two weeks’ worth every time you place an order, use days of supply. If you can only order in full pallet quantities, used fixed order quantities or a multiple. Selecting the best option will take some trial and error, but once you pick the best setting your time spent changing planner orders will certainly be reduces.

Topics: Oracle Supply Chain Planning