Tuesday, June 21, 2011

Sourcing Rules In Oracle

Sourcing rules and bills of distribution determine the movement of materials between organizations in your global enterprise;
these organizations include your suppliers and the materials include those items made at the manufacturing organizations.
They both describe sourcing supply; for any organization, they answer the question "where do I get part A from?". (They never say "where do I send part A to".)
Sourcing rules answer this question for one organization or for all organizations in the enterprise. Bills of distribution can define a strategy for multiple organizations.
Sourcing rules and bills of distribution both specify date-effective sourcing strategies, combining replenishment sources with split allocation percentages and rankings.

A sourcing rule is a statement of planned sources of supply.
Sourcing rule is global (available to all organizations) or local(available to the only organization in which it is defined)

3. A replenishment source is:
an inter-organization transfer (Transfer From)
the replenished organization that manufactures the item (Make At)
an external supplier (Buy From)

Make at:
This option specifies that you will make any items associated with the rule at the receiving organization.

Buy From:
This options specifies that you will buy any items associated with the rule from supplier. YOu must enter apt supplier and site (optional).

Transfer from:
This option specifies a diff organization within the enterprise as the source of the items.Using this option you will identify the source organization.
You must have already defined the shipping n/w b/w source and recv organization.

Ship method determines the intransit time and shipping cost which planning will use in its calculations.

all org: global rule
org: Local rule

assignment set is attached with plan for Planning purpose.

3. Allocation and rank in Sourcing rule
Allocation:
Rank:
You can rank the sources of supply named in the rules and bills, giving one priority over another when the planning process generates recommendations. You can also assign sourcing percentages to these sources, allowing you to allocate a portion of the total orders to each source
You cannot apply sourcing rules and bills of distribution (make them Planning Active) until the sum of the allocation percentages equals 100.

Both sourcing rules and bills of distribution have effective dates, periods during which the scheme is valid. For each period, you can specify a list of sources, type, allocation percentage, rank, shipping method, and intransit time.
You cannot apply sourcing rules and bills of distribution (make them Planning Active) until the sum of the allocation percentages equals 100.

4. Time Phasing in sourcing rule: Sourcing rules define inventory replenishment methods for either a single organization or all organizations in your enterprise.
Time-phasing in a sourcing rule determines when each group of shipping method - ship org combinations is in effect, as in this example:

5. Viewing Sourcing Rules:

6. Assigning Sourcing rule:

Sourcing rule themselves do not specify the items for which they will be used. This is the function of the assingment.
Assignment set:
Once you have defined your sourcing rules and bills of distribution, you must assign them to particular items and/or organizations.
These assignments are grouped together in assignment sets. this is literally set of assingnment sets.
This is where your various sourcing strategies define a particular supply chain network.
Assignment combination ass type,organization,item/category,source type should be unique accross assignment sets
We can have mulitple assignment sets each for a specific purpose.

7. Levels in Assignment sets:
In an assignment set can assign your sourcing rules and bills of distribution at different levels, as follows:

an item across all organizations
a single item in an inventory organization
all items in an inventory organization
categories of items
categories of items in an inventory organization
all organizations

8.
Assigned to: Each Sourcing rule can be assigned to:
a single item (across all organizations)
an item in a specific organization
all items in a specific organization
a category of items
a category of items in an organization
all items in all organizations (globally)

9. YOu can define multiple assignment sets and use them for different puposes
for example you can define one assignment set for production plan , one for simulated plan and other for Global order promising

It is possible that several assignments might apply for a given item:
Example You might have one assignment for an item and another assignment for the categorty to which the item belongs.
For planning purposes most specific assingnment is used.
You can check all the assignments that exists for an item using View Sourcing Assignment Hierarchy form.

Each assignment set to represents selection of organizations and/or items you want planned.
To influence the planning process, you must include an assignment set in your plan options.
MRP is used for managing sourcing of materials to meet demand.

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