MRP Generates Excess Planned Order When On Hand Has Lot Exipiration Setup (Expired Lots) And Sales Order Reservations Exist For The Item (Doc ID 1536947.1)

Last updated on JUNE 28, 2017

Applies to:

Oracle Materials Requirement Planning - Version 11.5.10.2 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3 version, Materials Requirements Plan in all instances and duplicated in support internal instance:

Users run MRP plans with Full Lot Control and Shelf life which generates lot expiration for on hand based on the shelf life setup. They're seeing the exact same problem as 11.5.10 bug 7553336. In discussing with development I duplicated this problem in 11.5.10 as no formal patch ever came out. He provided me a beta patch for 11.5.10 to upgraded mrlnw3.ppc to 115.78. I tested this fix in 11.5.10 and it fixed the problem which we'll show shortly. Now we need this fix for 12.1 code line. Basically we find that when a sales order is reserved and is fulfilled by an on hand lot with expiration date/shelf life, the reserved expired lot is still seen as demand and a planned order is recommended.

Testcase: Duplicated in 12.1.3
Org = M1
Item = JMExpire - this is a buy item with 1 day proc LT. Key setups in the Org item attributes Inventory tab:

Lot Expiration Shelf Life - Control = Shelf Life Days
Shelf Life Days = 180
Lot - Control = Full Control
Scroll over to the right and enable checkbox called Lot Status Enabled - this should show the Default Lot Status = Active

Put on hand qty = 150 in 6 lots of 25 each - 180 day shelf life - these expire in July 2013 using INV/Transactions/Miscellaneous transaction
JMEXP-01
JMEXP-02
JMEXP-03
JMEXP-04
JMEXP-05
JMEXP-06

Created sales order qty = 1 and scheduled due 22-FEB-2013
Did sales order reservation in INV form and assigned JMEXP-01 thru JMEXP-04 to the sales order - total = 100
Created MDS = JMExpMDS - loaded my sales order
Created Supply Chain Plan for MRP called JMExpMRP and attached the MDS for demand schedule items only and ran the plan with Net Reservations enabled in the plan options. Export of supply demand

Item Org Order Type Sugg Due Date Qty/Rate Order Number Action
JMExpire M1 Expired lot 29-Jul-13 -25 Demand
JMExpire M1 Expired lot 29-Jul-13 -25 Demand
JMExpire M1 Expired lot 29-Jul-13 -25 Demand
JMExpire M1 Expired lot 29-Jul-13 -25 Demand
JMExpire M1 Expired lot 29-Jul-13 -25 Demand
JMExpire M1 Expired lot 29-Jul-13 -25 Demand
JMExpire M1 Planned order 29-Jul-13 100 Release
JMExpire M1 Sales order MDS 22-Feb-13 -100 66718:Mixed:ORDER ENTRY Demand .

Note all 6 expired lots show up - only expected 2 of the them as sales order should consume 4 of the 6. Also get unnecessary planned order qty = 100. If you disable Net Reservations in the plan options and run the plan again, you get the expected output:

Item Org Order Type Sugg Due Date Qty/Rate Order Number Action
JMExpire M1 Expired lot 29-Jul-13 -25 Demand
JMExpire M1 Expired lot 29-Jul-13 -25 Demand
JMExpire M1 Sales order MDS 22-Feb-13 -100 66718:Mixed:ORDER ENTRY Demand .

Customer does reservations and needs those netted in plan options so the workaround is not acceptable

Key file customer has is mrlnw3.ppc mrlnw3.ppc 120.1.12010000.2


EXPECTED BEHAVIOR
-----------------------
Expect sales order to consume the future expired lots and not create unnecessary planned order

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
See above

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, users are overstating demand and thus supply which leads to unnecessary on hand and ordering costs

Cause

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