Enhanced Order Fulfillment using Oracle Global Order Promising

1. Enhanced Order Fulfillmentusing Oracle Global Order Promising Navneet GoelDevelopment ManagerOracle Corporation

2. Traditional Approach Customers Suppliers Multi-step planning processes, high latency, limited collaboration Tier 2 • Response 1:Maintain Excess Inventory • Response 2: Reserve Production Capacity • Response 3:Expedite Everything! Tier 1 Production Plans Distribution Plans Manufacturing Plans Marketing Forecast Sales Forecast ? Mfg Forecast t = weeks Supply Planning Process Demand Planning Process Supply Chain Built on Inventory

3. A Better Way

4. Move to a More Competitive Model Customers Suppliers Oracle’s APS: zero latency, real-time collaboration Tier 2 Tier 1 • Enable closed loop planning processes across your value chain • Provide total supply chain visibility • Make better decisions • React immediately to changes in supply chain Internet Portal Portal Collaborative Planning Process Collaborative supply plan Collaborative demand plan Automated exceptions Automated exceptions Marketing forecast Single holistic plan Automated exceptions Sales forecast Consensus forecast Mfg forecast t = hours Supply Planning Process Demand Planning Process Build your Supply Chain on Information not Inventory

5. Agenda • APS Overview/ Architecture • Oracle’s ATP flavors • Set up • Profile Options • Key Concurrent Requests • Core GOP features • GOP Computation • Diagnostics • Q&A/ Feedback

6. Internal Users Trading partners Portals Internet Oracle ERP Oracle ERP 10.7 Oracle ERP 11.0 Order Promising Engine Oracle ERP 11i Analytical Workspaces API S KPIs Workflows Plans XML EDI Flat file Advanced Planning Legacy Systems APS Architecture

7. Oracle’s ATP Flavors • Setup via profile “INV: Capable to Promise” • ATP based on Collected Data (ODS) • Single Level ATP • Supports simple supply chain • ATP/CTP based on Planning Data (PDS) • Single Level ATP • CTP across supply chain using Sourcing/BOM/Routings • Based on ASCP plan in APS • Supports complex supply chain model

8. Collection Based ATP (ODS) • Single Level ATP in requested org/ Global ATP • Need to run “Data Collection” • Complete • Net Change • ATP Rule determines: • Supply/Demand to be included • Infinite Supply Fence • May use a Supply Schedule, e.g., MPS

9. Planning Based ATP (PDS) • Promise orders based on: • Material availability • Manufacturing capacity • Supplier capacity • End-Item/Component Substitution • Product Family • Infinite Supply Time Fence • Manage commitments to key customers • Re-schedule and re-sequence your backlog

10. Planning Based ATP (PDS) • Global statement of availability • All facilities, material, resources, and suppliers • Region-Based Sourcing • Summary Based ATP • Allocate available supply • By channel, customer, or product • Priority and stealing rules • Time phased

11. GOP Setup • Profile Options • ATP Flag Setup • Sourcing/ BOM/ Routings • ATP Rule • Time Fence • supply/demand sources (ODS) • Plan Options • Request Date Type • Ship/Arrival Sets

12. INV: Capable To Promise INV: External ATP MRP:ATP Assignment Set MRP: Calculate Supply Demand MRP:Include Substitute Components MSC:ATP Assignment Set MSC: ATP Debug Mode MSC: Enable Allocated ATP MSC: Class Hierarchy MSC: ATP Allocation Method MSC: Enable ATP Workflow MSC: Enable ATP Summary Mode MSC: Plan co-products Profile Options

13. Concurrent Request/Set • System Administrator Responsibility • Gather Schema Statistics • Create APS Partitions • OM Responsibility – For ODS ATP (no APS) • ATP Data Collection • Load ATP Summary Based on Collected Data

14. Concurrent Request/Set • Run from Advanced Supply Chain Planner Responsibility • Planning Data Collection • Launch ASCP Plan • Create ATP Partitions (Only during upgrade) • ATP Post Plan Process • Refresh Allocation Hierarchy Materialized View • Analyze Plan Partitions

15. Core GOP Features

16. Global Availability - Example Customer1, Site1 Requests Item A Rank 1 Rank 2 A/Org1 (M1) A/Org2 (M2) Sourcing Rule(SR-A) Assignment Set Cum ATP ATP Request Info:Request Qty 100, Request Date Day10, Latest Acceptable Date Day12 ATP Result: Qty 100 from M2 on Day12

17. Global Availability • Availability Information across warehouses • Best option based on • Availability • Rank • Sourcing via Region-based rules • Computes Delivery LT and Ship/Arrival Date • Supports calendar for • Shipping • Receiving • Carrier/In-transit

18. Region Level Sourcing • Multiple levels of Geographical Hierarchy • Region based Inter-Location Transit times/ ship methods for customer-site and shipping warehouse • Enable sourcing/ lead time calculation for new customers • Supports flexible hierarchical setup via assignment set/ sourcing rules • Profiles • MRP: ATP Assignment Set • MSC: ATP Assignment Set

19. GOP with No Downtime (24X7 ATP) • Zero downtime • No downtime when underlying supply chain plan is refreshed • No SO is lost, automatically re-promise SO against new plan • Open, reliable, and scalable • Engine runs inside the database, No memory models to load! • Multi-threaded • Integrated with OM, Quoting, iStore, etc. • Easy integration with legacy systems

20. 1 day lead-time 5 day lead-time 5 day lead-time 4 day lead-time Capable to Promise (CTP) - Example A (Customer 1, Site 1) A (Org 1) A (Org 2) B (Org 1) R1 (Org 1) B (Org 2) R2 (Org 2) B (Supplier 1) B (Supplier 2)

21. Capable to Promise (CTP) • Increased order fill rate using extra manufacturing and supplier capacity • CTP finds availability using make/buy/transfer info by request date (Backward Scheduling) • Forward Scheduling involves look ahead CTP, determines when orders for items can be fulfilled • Recursive check against BOM

22. Allocated ATP • Group/ Prioritize Customers per business need thru • Demand Class • Customer Class Hierarchy • Material may be allocated to these groupings using • Pre-defined allocation rules • Forecast quantities as honored by ASCP Plan • Stealing of supplies from lower priorities prior to CTP • Ensure target supply to key customers

23. Allocated ATP • Manage commitments to key customers • Allocate availability to more profitable channels

24. End-Item Substitution • Improved demand fulfillment/ inventory utilization • Supports • Single or Bi-directional Substitution, chaining • Time phased Substitution, substitution window • Rule Based/ Customer Specific substitution • Availability of Requested vs. Substitute Item • CTP for Requested vs. Substitute item • Exception/ Workflow Notification for Item Substitution • Stealing prior to Substitution with Allocated ATP

25. Product Family ATP • 2 Flavors • based on ATPable PF Item Only (Pre-11.5.10) • using member item within Aggregate Time Fence and PF item outside Aggregate Time Fence (11.5.10) • Plan must contain PF Item as well • Forecasting may be done either for PF or member item • CTP will be done on member item, if needed, for time-phased PF ATP • Supports Allocated ATP

26. Supplier Capacity • Supplier Capacity may be checked during CTP • defined in ASL • Infinite Capacity after last date in ASL • Sourcing Rule/Assignment Set per ASCP Plan • Creates Planned Orders for Supplier-Site in ASCP Plan • Planned Orders may be released prior to next plan run

27. Resource Batching • Batch process: Same work on multiple items for a pre-set amount of time by same resource simultaneously, like heat treatment, sand blasting, etc. • Resources are constrained by product of time and weight or volume, i.e., capacity multiplied by time. • Only for constrained plans with routings • Setup: • Enable batchable flag, Capacity UOM in ERP • Profile: “MSO: Global Batchable Flag” in APS

28. Summary Based ATP • Supports enhanced performance with accuracy • Profile: “MSC: Enable ATP Summary Mode” • Post-plan process generates summarized data • Run Concurrent program periodically for incremental summary

29. GOP Computation • Netting • Net Supply-Demand for a given day/time period • Backward Consumption • Use surplus from past to cover existing shortage • Forward Consumption • Use future surplus to cover existing shortage • Accumulation • Carry over the availability • Stealing (for AATP) • Steal supplies from lower priority tiers for new demands

30. GOP Computation • Example D1 D2 D3 D4 Supply 10 10 10 10 Demand 4 18 6 7 Net Qty 6 (-8) 4 3 Backward 0 (-2) 4 3 Forward 0 0 2 3 Cum Qty 0 0 2 5

31. Summary Pegging Info

32. Supply/Demand Details

33. ATP Period Info

34. Input Data Profile Options Item Attributes Regions/Zones Sourcing setup Lead Times Infinite Time Fence ATPable Plan Info BOM/ Routings Allocation Method/ Rule/ Percentage/ Priority Resource Batching End Item Substitutes Component Substitutes Diagnostics – Setup

35. Diagnostics – Debug/Trace File • Set user profile (MSC: ATP Debug Mode) before invoking ATP/ Scheduling as: • Functional issues: “Debug Only” • Performance: “DB Trace Only” or “Debug & DB Trace” • Provide debug (session-<n>) or trace/tkprof file (from DB trace location) • Re-set profile to 'None' to avoid any performance issues

36. Questions/ Feedback Navneet.Goel@oracle.com

37. Industry Standard ATP (Available To Promise) GOP (Global Order Promising) CTP (Capable To Promise) PTO (Pick to Order) CTO (Configure To Order) ATO (Assemble To Order) CTD (Capable To Deliver) BOM (Bill of Materials) BOR (Bill of Resources) Oracle Specific APS (Adv. Planning & Scheduling) ASCP (Advance Supply Chain Plan) ODS (Operational Data Store) PDS (Planning Data Store) LAD (Latest Acceptable Date) AATP (Allocated ATP) ATF (Aggregate Time Fence) Reference - Acronyms