Oracle E Business Suite MRP(Material Requirement Planning) and Master production Schedule-16


  1. What are demand classes?Demand classes allow you to segregate scheduled demand and production into groups, allowing you to track and consume those groups independently. A demand class may represent a particular grouping of customers, such as governmental and commercial customers, or it may represent sales channels or regions. Demand classes may also represent different sources of demand, such as retail, mail order, and wholesale.

    2. What is expected delivery date?
    Ans: Excepted delivery date is number of days that system allows orders to arrive before they are needed.
    The Acceptable Early Days item attribute is defined in Oracle Inventory. Oracle Master Scheduling/MRP and Supply Chain Planning does not generate a reschedule out recommendation if the number of days the order is going to arrive early is less than the acceptable early days delivery. This allows you to reduce the amount of rescheduling activity within a material plan.

    3. On what criteria are requisitions released via the planner workbench?
    System looks at orders and ensures there exist no compression days for those orders i.e. recommendation of those orders doesn’t involve reduction of procurement lead times.

    4. What is Forecast consumption?
    Forecast consumption replaces forecasted demand with actual sales order demand. Each time you create a sales order line, you create actual demand. If the actual demand is already forecasted, the forecast demand must be decremented by the sales order quantity to avoid counting the same demand twice.

    5. What are the uses of Master scheduling?
    Master scheduling is used for:
    • Demand management
    • Scheduling production
    • Validating the production schedule
    • Managing the production schedule

    You use the schedules generated by master scheduling as input to other manufacturing functions, such as material requirements planning and rough-cut capacity planning.

    6. What are the demand types used in MDS?
    Demand types of Master Demand Schedule include
    • Item forecast
    • Sales order
    • Internal Requisition
    • Spares demand

    7. What is meant by schedule reliefs?
    Schedule reliefs are MDS entries to be decremented when you create purchase orders, purchase requisitions or discrete jobs. System would show the unfulfilled demand by performing relief operations.

    8. What is Demand time fence and Planning time fence?
    Demand time fence is the period of time where system only considers Sales order demand and ignores forecast demand in that period.
    Planning time fence is the period of time where plan doesn’t suggest any orders and considers the existing demand/supply to be frozen.

    9. What is the purpose of Planning Manager?
    The Planning Manager is a background concurrent process that performs automatic forecast consumption as you create sales orders.

    10. What is the difference between Shrinkage Rate and Component yield?

Shrinkage Rate
For a particular inventory item, you can define a shrinkage rate to describe expected scrap or other loss. Using this factor, the planning process creates additional demand for shrinkage requirements for the item to compensate for the loss and maintain supply.
For example, if you have a demand of 100 and a discrete job for 60, the planning process would suggest a planned order for 40 to meet the net requirements, assuming no shrinkage rate exists.
With a shrinkage rate of .2 (20%), Oracle Master Scheduling/MRP and Supply Chain Planning assumes you lose 20% of any current discrete jobs and 20% of any suggested planned orders. In this example, since you have a discrete job for 60, assume you lose 20% of that discrete job, or 60 times 20%, or 12 units. The net supply from the discrete job is 48. Since you have a total demand of 100 and supply of 48, you have a net requirement of 52 units. Instead of suggesting a planned order for 52, the planning process has to consider that 20% of that planned order is also lost to shrinkage.

Component yield
Component yield is the percentage of a component on a bill of material that survives the manufacturing process. A yield factor of 0.90 indicates that only 90% of the usage quantity of the component on the bill actually survives to be incorporated into the finished assembly.

The difference between a shrink rate and component yield is that Oracle Master Scheduling/MRP and Supply Chain Planning applies the same shrink rate to every use of an item on a bill, whereas you can vary the component yield factor you assign to each occurrence of an item on a bill. Another difference is that shrinkage demand is calculated at the parent assembly level and passed down to components. Component yield is calculated at the component level.

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