REORDER POINT PLANNING

Reorder Point Planning Report
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Reorder Point Planning
Reorder point planning uses demand forecasts to decide when to order
a new quantity to avoid dipping into safety stock. Reorder point
planning suggests a new order for an item when the available
quantity—on–hand quantity plus planned receipts—drops below the
item’s safety stock level plus forecast demand for the item during its
replenishment lead time. The suggested order quantity is an economic
order quantity that minimizes the total cost of ordering and carrying
inventory. Oracle Inventory can automatically generate requisitions to
inform your purchasing department that a replenishment order is
required to supply your organization.

You perform reorder point planning at the organization level. You
place an item under reorder point planning by specifying the inventory
planning method (located in the General Planning attribute group in
the Items window) as Reorder point planning when you define the item.

You can also specify the item’s processing, preprocessing, and postprocessing 
lead times, order cost, and carrying cost percent in this form. Likewise, item
safety stock levels may only be made at the organization level. 

Oracle Inventory only calculates safety stock levels for non–MRP
safety stock planned items. If you specified a safety stock percent
when defining the item, this value is used as a default when calculating
safety stock as a percentage of forecast demand. 

Requesting the Reorder Point Planning Report
To request a reorder point planning report you define selection
parameters for the items to include on the report. Reorder point
planning triggers a new order when the available quantity drops below
the item’s safety stock level plus forecast demand during lead time.
When you run the reorder point planning report you can have Oracle
Inventory create either internal or purchase requisitions for these
orders, depending on the sourcing options.

To request the reorder point planning report:
1. Navigate to the Reorder Point Planning window.
2. Enter Reorder Point Report in the Name field.

Enter report parameters:
3. Indicate whether to report all items that are identified as reorder
point planned or only items with on–hand balances and on–order
balances that fall below their reorder point. Displaying all reorder
point planned items (regardless of their balances) enables you to
see where item balances are in relation to the specified order point.
4. Enter the demand cutoff date. The report includes demand on or
before this date.
5. Enter the supply cutoff date. The calculation includes open supply
orders with expected receipt dates on or before this date.
6. Enter Yes or No to indicate whether to restock. If you have set the
Planning Level to Organization, the report generates requisitions
or jobs according to the item’s Make/Buy flag. If you have set the
Planning Level to Subinventory, the report generates only
requisitions.
7. Indicate the delivery location to appear on the requisition, if
different then current organization, in the Default Delivery
Location To field.
8. Enter the forecast designator. Oracle Inventory uses this forecast to
determine the demand to be used in the reorder point calculation.
9. Enter the sorting criterion for the report. You can choose to sort by
inventory item, category, planner, or buyer. If you choose Category,
enter the category set from which Oracle Inventory chooses items
for the report.
10. Indicate whether to prepare a full or partial report. If you choose
Partial, specify the range of items, categories, planners, or buyers
you want to include.
11. Click the OK button to launch the report.