Impact Of Profile MSO: Queue Time Factor On IO Safety Stock SS Calculation (Doc ID 2040511.1)

Last updated on SEPTEMBER 09, 2016

Applies to:

Oracle Inventory Optimization - Version 12.1.3.8 and later
Information in this document applies to any platform.

Symptoms

On : 12.1.3.8 version, Engine Comp for Oracle RiskOpt

ACTUAL BEHAVIOR
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Impact of MSO:Queue Time Factor on IO SS calculation
We do have profile MSO:Queue Time Factor set at our instance. We would like to know if this is asking IO to consider Processing LT of buy item with 24 x 7 calendar
If yes - we can have deflated SS calculated.
Note : we have MSC: Buy Order Processing Lead Time Calendar = Supplier Calendar. And ASCP is using supplier calendar for LT offsetting on buy items. And out set up 100% accurate on ASL, Supplier calendar association.
 

EXPECTED BEHAVIOR
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We would like to ensure if we need to set up profile "MSO:Queue Time Factor" = 0.4 so IO inflated Processing LT by 40%
If processing LT =5 days - 40% inflation will cuase it to be 5 * 1.4= 7 days so below SS formula will have more value in numerator and calcuate more SS to cover LT

SSL = K * 1.25 * (Forecast * MAPE/100) * sqrt( (ProcLT * 1.4 + PreLT + PostLT) / LT bucket days)

where LT Bucket Days = 7 days as mentioned in Oracle whitepaper "ASCP-IO-Safety-Stock-Calc-Lead-Time.pdf"

How does profile MSO:Queue Time Factor work on IO SS calculation.

Cause

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