Is Oracle MRP efficient enough to reduce Inventory?Role of Lead time setups

Gurus,
I started understanding MRP these have the following questions,appreciate your inputs on below items
1)Does Item Lead time setups play a role in MRP?If Lead time setup is blank for all items,,does MRP work efficiently?
2)We just use MRP..not using any other inv rep. techniques like Min - Max etc.Our inventory is 3/4 times more than our monthsly revenues?exmaple our one month shipments are like 1 Mil.our inventory is like 4 Mil..Is it ok?how to reduce inventory?
3)how to improve our planning?
we are on 11i and discrete mfg.
thank you.

1)Does Item Lead time setups play a role in MRP?If Lead time setup is blank for all items,,does MRP work efficiently?
Lead times do play an important role in MRP. If lead times are blank, MRP will assume that all items can be procured / made in no time at all. The recommendations you get in MRP will be based on this incorrect assumption.
2)We just use MRP..not using any other inv rep. techniques like Min - Max etc.Our inventory is 3/4 times more than our monthsly revenues?exmaple our one month shipments are like 1 Mil.our inventory is like 4 Mil..Is it ok?how to reduce inventory?
Some companies have 52 inventory turns a year; some companies have 2. You are somewhere in between.There is no way for us to tell if you have too much inventory or too little. It highly depends on the industry you are in and on your business model. The best way is to compare yourself with other companies in the same market segment.
Inventory reduction is an art; not science. You can start looking at your excess and obsolete inventory and identifying patterns that lead to perceived excess. You can start looking at procurement practices. You can start analyzing MRP recommendations and acting upon them as required.
3)how to improve our planning?
You need to define what you mean by "improve". Oracle MRP is but a tool to improve planning. You need to implement a proper S&OP process to improve the planning component. You need to have a good review of your processes to "improve planning".
Sorry this is nebulous and may not help, but your question is quite generic.
Sandeep Gandhi
Independent Techno-functional Consultant

Similar Messages

  • Influence on lead time scheduling in MRP

    Hello,
    I am searching a possibility to influence the scheduling of planned orders, when they are created in the MRP run. There exists a BADI which is called when creating planned orders manually, but not in MRP. Its name is MD_PLDORD_SCHEDULING
    Does anybody know about such an alternative for scheduling in MRP?
    Thanks in advance
    Roland Böhm

    Hi,
    During MRP run for single material by MD02 or on plant level by MDBT,
    For MRP control parameters-
    Scheduling take value as 2 - Lead time Scheduling and Capacity Planning.
    and run the MRP.
    With this you will get planned orders, and production rates are calculated as per time mentioned in routing.
    But if you take scheduling value as 1 - Basic dates will be determined for planned order, then you system not consider lead time. Dates are picked from material master.
    Srini

  • Soft pegging in Oracle MRP 12.0.6

      We are using Oracle MRP 12.0.6 and we run MDS MPS and then MRP. Material planner generates purchase requisition against planned orders. Planner does not use MRP workbench to generate PR but through ERP reports having pegging information he generates PR manually in purchasing module. Due to changes in soft pegging after each MRP run, material planner has to review all items again and again whether he has planned these items in previous run. We cannot use hard pegging due to some limitations. Attributes of MRP items are End Assembly/Soft Pegging.

     moving this to planning community as it belongs there

  • Oracle MRP - Soft Pegging - Pegging Order?

    Hi Guru's
    Version : Oracle 11i
    Have a quick question on pegging – order of precedence. Lets take one example – Assume there is SO with Dec 2012 Sch. Ship date and PO’s are released in July(current month) 2012 to procure required material for Dec 2012 SO.Assume,in between there is another SO created in month of Aug 2012 for the same product with sch. Ship date of Nov 2012,business is expecting MRP the reschedule existing July PO and recommend a new PO for Dec 2012 SO.
    But we are given an understanding that,MRP doesnt support in that way.
    It is not just in case of PO’s,even in case of receipts or WO for anything,MRP should be following the same process so that business can address orders with less lead time on priority.
    Any inputs are much appreciated,
    Thank you.

    Hi
    Please review the note What is the pegging order sequence? [ID 879482.1].

  • Oracle's Support  to reduce Negotiation lead time

    Hi Everybody,
    How we can use oracle apps to reduce lead time during bid to PO cycle.
    Are there any oracle apps features/best practises which can help reducing lead time.

    You can use Oracle Sourcing Module for bid process.
    Thanks
    S.Shanthakumar

  • MRP exception message to reduce production orderr quantity

    Dear guru ,
    For a material I can see this mrp list in MD05 :
                                         Req.    available qty
    02.06.2009 stock                              38
    01.09.2009 prd.ord           80            118
    01.09.2009 ind.req.         100-            18
    For the production order element mrp donu2019t send any message to reduce quantity.
    Does exist a solution to solve this problem ?
    Thanks.

    Cris,
    SAP has no such message for MTS products.  You may get a 'push out' message if there are other requirements farther into the future.  In MD06, you can define traffic lights to indicate 'days of supply'.  In this case, materials (such as yours) which have a high DaysOfSupply can be highlighted.
    I have never seen an MRP system with a 'reduce' or 'increase' production order quantity message.  Once you have created the production order, you 'own' it.
    Regards,
    DB49.

  • Can oracle work in shared and dedicated mode at the same time?

    Hi All,
    can oracle work in shared and dedicated mode at the same time?
    Thanks

    A database can work only in one mode at a time.
    If the database is started in Dedicated Mode then it can not run in the Shared Mode. If you need to run it in the Shared Mode, bring down the Database , change DISPATCHERS, SHARED_SERVER, SHARED_SERVER_SESSIONS parameters in initfile and bring up the database to run it in Dedicated Mode.
    But there is one catch here, if you have started the database in Shared Server Mode even then you can make a Dedicated connection to server.
    Thanks!
    M-

  • Different Lead times for supplier in MRP calculation

    Dear All,
    We have different suppliers for a material. Different suppliers have different lead times and Min.lot size. Our requirement is when we run MRP system should suggest Pld.Order quantity for the supplier and also take lead time accordingly. I have done splits for suppliers by using Quata arrangement but system is only taking planned delivery time from material master record.
    I also defined info records for the vendor and define lead time but still system is taking Pld delivery time from materials master.
    Please help
    Majid Ali khan.

    Hi,
    Go to OPPQ, enter your plant then click on External Procurement, there tick the check box Scheduling: Info Rec / Agreement.
    This will ensure that the PDT is read from info-record if it exists.
    Hope it clarifies.
    Regards,
    Vivek

  • How can I reduce my Z report access time ?

    Dear Friends,
    I have to access z report , but its processing time is very long , Is this possible that if i access report to give some
    input parameters , now next time if I access the same  report with the same parameter then access time is low ,
    I mean if I am accessing the report first time then if it takes approx 8 hours and then i save this access
    sequence somewhere then if I am accessing this report next time with the same input parameters then
    it will take only 10 min ,
    Is this possible ? if yes then How ?
    Suggest ....
    Regards ,
    Rihan
    SAP-abaper
    Edited by: rihano7 mansoori on Oct 18, 2011 11:46 AM

    Dear friend,
    to reduce your z program execution time , you need to work out very simple few steps.
    check t code sm30 and check your z program's execution time.
    if your database execution time is too long then you have to perform following steps to reduce your execution time.
    1 ) check your I/O database query.
    2 ) use select <field name> ... instead of select * from..
    3 ) if you are using your database query in any loop or internal table loop then remove that query and use internal table inside that loop.
    3 ) if you are playing with bunch of data then you need to create internal tables for the specified tables and use internal table
    as standard database table so that your program performance going to be better.
    there are more features provided by sap it self you need to explore more.
    say for it.   index,buffering...un-necessary occupied memory n all...
    hope for the best programming.
    good luck
    Avirat

  • Cumulative Lead Time -MRP

    Can you tell me, What is Cumulative Lead Time?. In MRP module, i can't use this function, althought i have already read help file.
    Please explain for me!
    Thank you!

    Hi Tien Le ,
       This MRP concept is best understood when you run the MRP by yourself and analyze. Let us perform a exercise
    1. Create an item called as a Parent item (Make), Item A (Buy) and Item B (Buy), you will find 'make' and 'buy' in planning tab of item master data. don't forget to mark all three item as mrp in the same tab..!
    2.Create a single level of BOM i.e. Parent item needs item A and Item B.
    3.Create a sales order for parent item  with qty as 1 date as on today and due date as on 15th of aug.
    4.Create another sales order for parent item again with qty as 2 date as on today but now due date as on 20th of aug.
    5. Now run MRP with start date as today and end date as on 15th aug. Consider only sales order and untick all others. Check the result and recommendations you will find no change in both.
    6. Now run MRP again with start date as today and end date as on 15th aug. Consider only sales order and "Max. Cumulative Lead time = 5"
    Now check the result and recommendation of MRP run you will find the difference and this difference is caused by cumulative  lead time.
    Result would be that the max cumulative lead time is the time limit that is added to your planning horizon.
    Hope you understood.
    Regards,
    Aditya.

  • When I come from outside and press the home button to turn my iPod on, there is white, light blue and red lines but it is transparent enough that I can see my background, time, etc. It hasn't been water damaged, so that cant be the problem.

    When I come from outside and press the home button to turn my iPod on, there is white, light blue and red lines but it is transparent enough that I can see my background, time, etc. It hasn't been water damaged, so that can't be the problem. I was thinking maybe it is just because of the cold but, I don't like having my iPod doing that whenever I come back from the cold. However, I was in class too and this problem happened but it was inside! So I am very worried, I have dropped my ipod a few times but it hasn't fallen that hard to effect it.

    Try:
    - Reset the iOS device. Nothing will be lost
    Reset iOS device: Hold down the On/Off button and the Home button at the same time for at
    least ten seconds, until the Apple logo appears.
    - Reset all settings      
    Go to Settings > General > Reset and tap Reset All Settings.
    All your preferences and settings are reset. Information (such as contacts and calendars) and media (such as songs and videos) aren’t affected.
    - Restore from backup. See:                                 
    iOS: How to back up                                                                
    - Restore to factory settings/new iOS device.             
    If still problem, make an appointment at the Genius Bar of an Apple store since it appears you have a hardware problem.
    Apple Retail Store - Genius Bar                                      

  • Can I reduce a Template image upload time to Azure RemoteApp ?

    Can I reduce a Template image upload time to Azure RemoteApp ?
    I want to reduce from 2 hours to 1 hour.
    Today, Jan 14, 2015's upload time is over 2 hours.
    Environment
      Region : Japan West.
      Vhd size: 43 GB
      Upload Tool: Upload-AzureRemoteAppTemplateImage.ps1
    Result
      Elapsed time for the operation= 00:32:38
      Elapsed time ffor upload = 01:48:29
      Traffice rate = 58 Mbps
    Regards,
    Yoshihiro Kawabata

    Hi Yoshihiro,
    1. You can reduce the Hash calculation time by storing the vhd on faster hard drive(s) and using faster CPU.  For that size vhd you should be able to get it down to less than 10 minutes for the calculation time.
    2. You can reduce the upload time by using faster Internet connection that is as close as possible to Azure Japan West facility, with low latency and no packet loss.  Under excellent conditions (high bandwidth link, low latency, no loss) you should
    be able to get several hundred Mbps throughput. 
    -TP

  • I fitted new battery but it won't charge. when plugged into wall socket gets to itunes setup but no further. when connected to computer not enough battery to turn on to get into setup. Any ideas please?

    i fitted new battery but it won't charge. when plugged into wall socket gets to itunes setup but no further. when connected to computer not enough battery to turn on to get into setup. Any ideas please?

    turnbui wrote:
    i fitted new battery but it won't charge. when plugged into wall socket gets to itunes setup but no further. when connected to computer not enough battery to turn on to get into setup. Any ideas please?
    It sounds very very much like the battery. You will need to have it replaced. If you put the failing one in yourself you will need to pay as your Warranty is now void.
    Pete

  • [Schema Design]: How to reduce inventory snapshot table size

    We are planning to store inventory level's periodic snapshot at the end of each day. We have close to 50k different products. 
    But on a given day only 5-6k products inventory changes. 
    As I understand if I start inserting just the products which have changed inventory, analysis around semi-additive dimension (Quantity) doesn't work properly. 
    For better understanding, lets take say the fact table looks like:
    product_id     time_id     quantity
    1                         1             100
    2                         1             130
    3                         1             100
    1                         30           200 
    So basically, it says product 1,2,3 from time_id 1 to time_id 29 doesn't have any update in quantity. But product_id 1's inventory changes to 200 on time_id 30.
    This approach reduces fact table size by approx 90 rows.
    My question is, is it a good idea? Would this semi-additive dimension still give the same result (I doubt though)?
    If not, then what other approaches I can take?
    Thanks in advance.

    Another option is to capture just the net changes (sometimes referred to as a journalized fact table). Then you can create a calculated measure that sums all the changes from the beginning of time up to the current time-slice.
    This may seem like an inefficient solution, but there are ways to reduce the problem by limiting the history for which inventory snapshots are available. For example, if the business only needs snapshots for the past 90 days, then you can grab a snapshot
    of inventory for all products on day 0, and then capture the net changes for each product for days 1-90. Then you can calculate the snapshot in time by adding the baseline snapshot to the sum of all net changes.
    BI Developer and lover of data (Blog |
    Twitter)

  • Oracle8 pl/sql programmin by scott urman, oracle press book enough???

    hi everybody, i have oracle8 pl/sql programmin by scott urman, oracle press book, which covers releases 7 through 8. is this book enough for me to prepare for the exam "introduction to oracle 1z0-001". please give your views. thanks..

    I recommend you check the exact objetives here: http://education.oracle.com/pls/web_prod-plq-dad/db_pages.getpage?page_id=41&p_org_id=1000255&lang=ESA&p_exam_id=1Z0_001 and compare them with the objetives describe in the book. Currently I have 10 certifies and I have done the same always. I check the objetives in the Oracle web site and I study across Oracle Documentation. That is one of the best way to get a strong prepartion and it is shippper.
    Greetings
    Joel Pérez
    Oracle Ace Member
    DBA Oracle

Maybe you are looking for