Defining Supply Chain Plans
Oracle ASCP can generate planned orders for an entire supply chain within a single multi-organization supply chain plan. This is illustrated below with a sample supply chain; and'Sample Bill of Material.
In this sample supply chain, SF1 and SF2 are subassembly facilities, AF1 is a final assembly facility, DC1 and DC2 are distribution centers, C1, C2, C3 and C4 are customers and S1, S2, S3 and S4 are suppliers. A single plan of the entire supply chain has the following inputs:
- Demand quantity (forecast + actual sales orders) for A01 at DC1 for each of the time buckets in the planning horizon. This is captured in a Master Demand Schedule (MDS) for DC1.
- Demand quantity for A01 at DC2 for each of the time buckets in the planning horizon. This is captured in an MDS for DC2.
- The plan output contains planned order quantities, start dates, and completion dates for A01 and all of its components and subcomponents.
Prerequisites for Running a Global Supply Chain Plan
To run a global supply chain plan, the following prerequisites are required:
- Each planned organization must be set up on the source instance.
- Collection programs must be directed to collect data from the transactional instance of each planned organization.
- Items to be planned must be enabled in each organization that can produce (or distribute) the item. During item setup, items can be enabled in all organizations or only in specific organizations.
- Routings and/or Bills of Resource for each planned item must exist or be enabled in each organization that is planned centrally.
- Suppliers and sourcing rules must be enabled in all relevant organizations.
Advantages of the Single Plan
The single-plan approach is advantageous for the following reasons:
- Least planning effort: Fewer plans need to be generated; fewer planning servers need to be deployed and maintained.
- Data consistency: Without the single-plan ability, requirements must be repeatedly transferred upstream within the supply chain to each successive supplier facility.Each transfer presents an opportunity for miscommunication or data loss.
- Global optimization: Intelligent trade-offs between the performance of individual facilities (as measured by, for example, plan profit) can be made because Oracle ASCP optimizes the supply chain planned orders as a whole.
- Minimum communication lag:The effects of decisions made at the highest level of the supply chain are immediately visible at the lowest level of the supply chain. If individual facility plans are used, there is at least a one planning-run duration lag between the receipt of requirements at a facility and the passing of the dependent requirements to the facility's suppliers. Moreover, this lag is often much greater due to differences in working hours between upstream and downstream facilities (for example, if the facilities are in different time zones). Also, the planning cycles of upstream and downstream facilities may not be synchronized (for example, customer facility AF1 runs its plan on Monday, while supplier facility SF1 runs its plan on Sunday). This results in even longer communication lags. The overall effect of plan communication lag is to make the supply chain less responsive to meeting changes in customer demand
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