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Inventory Accuracy

By Sam Holmes,2014-10-06 00:44
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Inventory Accuracy

    Inventory Accuracy

    Overview

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Inventory Accuracy

    System References

    Oracle Inventory > ABC Codes > Define ABC Compile Oracle Inventory > ABC Codes > Define ABC Classes Oracle Inventory > ABC Codes > ABC Assignment Groups Oracle Inventory > ABC Codes > ABC Group Class Assignment Oracle Inventory > ABC Codes > Assign ABC Items Oracle Inventory > ABC Codes > Update ABC Item Assignments Oracle Inventory > Counting > Cycle Counts

    Oracle Inventory > Counting > Cycle Count Classes Oracle Inventory > Counting > Perform Full Cycle Count Oracle Inventory > Counting > Parameters

    Oracle Inventory > Counting > Cycle Count Entries Oracle Inventory > Counting > Count Adjustment Approvals Summary

    Distribution

    *Job Title

    Ownership

    The Job Title [list@YourCompany.com?Subject=EDU40D1Y.doc] is responsible for ensuring that this document is necessary and that it reflects actual practice.

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R12 Inventory Accuracy Fundamentals

Instructor Note

    All practices were tested using the M1 organization in the Vision database.

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Objectives

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    Overview of Inventory Accuracy

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ABC Analysis Overview

ABC Analysis

     An ABC analysis determines the relative value of a group of inventory items based on criteria you define. ABC refers to the rankings you assign your items as a result of this analysis, where A items are ranked higher than B items, and so on.

     You use the ABC analysis you compile to drive cycle counts. You count items of high value (A items) very frequently, items of lower (B items) value less frequently, and items of lowest (C items) value very infrequently.

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    Defining an ABC Analysis

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Define and Run an ABC Compilation

Define and Run an ABC Compilation

    An ABC Compile is a ranking of your items based upon selected criteria. You can define and compile an ABC analysis for your entire organization or for a specific subinventory within your organization.

    You choose the compilation criterion, the scope of your analysis, the cost type to use in determining item values and any additional information that may be conditionally necessary based on your compilation criterion.

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ABC Compilation Criteria

ABC Compilation Criteria

    For each distinct compile, you can choose one criterion (such as current on-hand value or MRP demand usage value) to value and rank each item included in the ABC compile. The criterion that you choose defines what the rank of a particular item will be in the ABC Compile. For example, if you use current on-hand quantity as your compile criterion, then item X with an on-hand quantity of 10 units is of higher rank than item Y with a quantity of 5 units. If you use current on-hand value as the criterion and if item X has a cost of $10 per unit and item Y has a cost of $25 per unit, then item Y has a higher value than item X since Oracle Inventory compares $100 ($10x10 units) to $125 ($25x5 units).

    Explaining ABC Compilation Criteria Options

    Current On-Hand Quantity

     Use the current on-hand quantity of inventory. Assign the sequence number by descending

    quantity.

    Current-On-Hand Value

     Use the current on-hand quantity of inventory multiplied by the cost for the cost type.

    Assign the sequence number by descending value.

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Historical Usage Value

     Use the historical usage value (transaction history). This is the transaction quantities times

    the unit cost of the transactions for the time period you specify. Assign the sequence

    number by descending value.

    Historical Usage Quantity

     Use the historical usage quantity (transaction history) for the time period you specify.

    Assign the sequence number by descending quantity.

    Historical Number of Transactions

     Use the historical number of transactions (transaction history) for the time period you

    specify. Assign the sequence number by descending number of transactions. Forecasted Usage Value

     Use the forecasted usage value based on the forecast quantity calculated and the cost type

    you specify. Assign the sequence number by descending value.

    Forecasted Usage Quantity

     Use the forecasted usage quantity. Assign the sequence number by descending quantity. Previous Cycle Count Adjustment Quantity

     Oracle Inventory sums the quantity of all cycle count adjustments that have occurred since

    the last ABC compile date. Assign the sequence number by descending quantity. Previous Cycle Count Adjustment Value

     Oracle Inventory sums the value of all cycle count adjustments that have occurred since

    the last ABC compile date. Assign the sequence number by descending value. MRP Demand Usage Quantity

     Oracle Inventory sums the MRP gross requirements for the MRP plan you specify. Assign

    the sequence number by descending quantity.

    MRP Demand Usage Value

     Oracle Inventory sums the MRP gross requirements for the MRP plan you specify, then

    multiplies each by the item cost type you choose in the ABC compile form. Assign the

    sequence number by descending value.

    MPS Demand Usage Quantity

     Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify.

    Assign the sequence number by descending quantity.

    MPS Demand Usage Value

     Oracle Inventory sums the MPS gross requirements for the MPS schedule you specify,

    then multiplies each by the item cost type you choose in the ABC compile form. Assign

    the sequence number by descending value.

    DRP Demand Usage Quantity

     Oracle Inventory sums the DRP gross requirements for the DRP plan you specify. Assign

    the sequence number by descending quantity.

    DRP Demand Usage Value

     Oracle Inventory sums the DRP gross requirements for the DRP plan you specify, then

    multiplies each by the item cost type you choose in the ABC compile form. Assign the

    sequence number by descending value.

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