Budget Constraints At Plan Level In IO Not Acting As Expected.

(Doc ID 1589843.1)

Last updated on NOVEMBER 14, 2016

Applies to:

Oracle Inventory Optimization - Version and later
Information in this document applies to any platform.


On : version, User Interface

You have defined an Inventory Optimization Plan with a budget constrained of $25,000 defined at the plan level. The plan is setup to plan for 3 organizations with the following sourcing:

MY1 (Factory) > MY2 (Distribution Center #1) > AU2 (Distribution Center #2)

Forecasts are generated at AU2 and the plan is using postponement.

After the plan is run, the Projected Safety Stock (Value) for All organizations is greater than 25K. If you drill down to the Organization level, the sum of the Projected Safety Stock (Value) match the value for All organizations and if you look at AU2, it appears that the budget constraint is being respected at this level, but not at the other organization levels.

For example, let's look at the Projected Safety Stock (Value) on 26-AUG-2013

All = 54286
- AU2 = 24981
- MY1 = 29306
- MY2 = 0

In AU2, the $25K budget constraint is respected, but it should be at the Plan level, not the Organization level.


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