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Oracle Inventory Replenishment Process

This document outlines the inventory replenishment process in Oracle SCM, detailing steps from demand forecasting to inventory updates. It defines roles, responsibilities, and key performance indicators while addressing exception handling and decision points. The goal is to maintain optimal inventory levels through effective planning and management.

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Roopali Agarwal
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4 views2 pages

Oracle Inventory Replenishment Process

This document outlines the inventory replenishment process in Oracle SCM, detailing steps from demand forecasting to inventory updates. It defines roles, responsibilities, and key performance indicators while addressing exception handling and decision points. The goal is to maintain optimal inventory levels through effective planning and management.

Uploaded by

Roopali Agarwal
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Oracle SCM - Inventory Replenishment Process

Purpose
This document describes the end-to-end inventory replenishment process in Oracle SCM,
including planning, requisition generation, purchasing, receiving, and inventory updates.

1. Business Objective
Ensure optimal inventory levels by automatically or manually replenishing stock based on
demand forecasts, reorder points, and min-max planning policies.

2. Scope
Covers demand planning, replenishment recommendations, purchase requisitions,
purchase orders, receiving, and exception handling.

3. Roles and Responsibilities


Planner, Inventory Manager, Buyer, Receiving Clerk, Warehouse Manager, and Finance
Team.

4. Process Flow
Demand Forecast → Planning Run → Replenishment Recommendation → Requisition
Creation → Purchase Order → Goods Receipt → Inventory Update.

5. Detailed Process Steps


Step 1: Capture demand forecasts and historical consumption.
Step 2: Execute planning run.
Step 3: Review replenishment recommendations.
Step 4: Generate purchase requisitions.
Step 5: Convert requisitions into purchase orders.
Step 6: Supplier fulfillment and shipment.
Step 7: Receive goods and perform inspections.
Step 8: Update inventory balances.
Step 9: Monitor exceptions and shortages.

6. Decision Points
Is inventory below reorder point? Is supplier approved? Does demand exceed forecast
tolerance?

7. Exception Handling
Supplier delays, stock shortages, forecast inaccuracies, receiving discrepancies, and rejected
materials.

8. Controls
Approval thresholds, planning parameter reviews, cycle counts, and audit logging.
9. KPIs
Inventory turnover, stockout rate, fill rate, replenishment lead time, and forecast accuracy.

10. Frequently Asked Questions


Why was a requisition not generated? Why is inventory still below safety stock? How are
reorder points calculated?

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