Oracle Inventory Organization: A Case Study

Inventory Organizations

Inventory organizations are defined to represent the following entities in the system:

• Item Master

• Expense Items / Service Receiving Entities.

The various considerations, which govern inventory organization setup, are as below:

• Stores Handling Responsibility

• Access to inventory transactions

• Stock Accounting considerations

• Physical Storage of Items

Inventory Organization Structure in Savola

The inventory organization structure for Savola will be as follows:

Organization Name (Code)

AUCR Item Master (MST)

An item master organization is used for item number maintenance and validation. This master Organization serves as a data repository storing items and item attributes, master level categories and category

Overview

Oracle Inventory facilitates management of inventory levels using any combination of the system 's planning and replenishment features, including min-max planning and reorder point planning.

Inventory planning involves answering the following two questions:

• When should a new order be placed?

• How much quantity should be ordered?

Min-Max planning is used to maintain inventory levels for the selected items. With min-max planning, minimum and maximum inventory levels need to be specified for the items. When the supply quantity level for a min-max planned item drops below the minimum, system suggests a new purchase requisition to bring the balance back up to the maximum.

Oracle Inventory looks at inventory balances, purchase requisitions and purchase orders as supply.

ID Perform Action Agent Description Automation INV.E.6.1 Inventory / Department Request Scheduling Internal Schedule Concurrent Request “Min-max planning report” to run in the system periodically with relevant parameters Standard

INV.E.6.2 Inventory / Department Review Requisition Internal Review the unApproved Purchase Requisitions.

Approve the Purchase Requisition & send to buyer for PO Creation.

Standard

For Min-Max Planned Items, the Minimum & Maximum Item Qty will be defined in the Item Master window. The Min-Max Planning report can be submitted at Organization or Sub inventory level. Every department will run the report for respective sub inventory.

If the Item stock level falls below the minimum Qty mentioned in the Item Master Window, the Reorder Qty for that item will be displayed in the Min-Max report. An Approved / Un-approved requisition will be created in purchasing automatically.

INV.E.6.0 Planning of Min-Max Items. Process