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IO Inconstiency In Generating Safety Stock Demand For Dependent Items Vs Independent Demand (End Item) (Doc ID 2427699.1)

Last updated on AUGUST 19, 2019

Applies to:

Oracle Inventory Optimization - Version 12.2.4 and later
Information in this document applies to any platform.

Symptoms

On : 12.2.4 version, Engine Comp for Oracle RiskOpt in PROD


Users are on 12.2.4 and have applied VCP Cum Patch 12.2.4.1 - 19549533 and are using key version MSRNWL64.ppc 120.17.12020000.34.1220401.76 from one off patch 26177965. Users are running an IO Plan Name = Glob_Plan7 - Planned Items = AA - Service Level Set = SVL - 54 weeks/0 periods - Penalty Factors all 20% except Demand Lateness = 100% - SS Change Freq is not setup - many orgs attached - Enabled Enforce Service Level Constraints - Plan Default Service Level = 98% - Fulfillment LT = 2

Item Data:
========
item name = G886AJ inv item id = 109655 - No ABC Class - No LT - Std Cost = 281.2662
item name = G886AS inv item id = 109662 - No ABC Class - No LT - Std Cost = 281.2662
item name = G886EC inv item id = 109739 - No ABC Class - No LT - Std Cost = 560.62454
item name = PHUW1000C inv item id = 318337 - ABC Class = 1001 = AA - Pre/Proc/Post LT 3/57/2 - Std Cost = 560.62454
item name = PHUF1298G inv item id = 146760 - ABC Class = 1001 = AA - Pre/Proc/Post LT 3/84/2 - Std Cost = 281.2662

They have a Service level set that at category level = CORE OF THE CORE ITEM and it's 98%

BOM's
=====
G886EC - no lead time
- PHUW1000C (1 per) - does show Pre Proc LT = 3, Proc LT = 57 - Post LT = 2 - ABC Class = AA

G886AJ - no lead time
- PHUF1298G (1 per) - does show Pre Proc LT = 3, Proc LT = 84 - Post LT = 2 - ABC Class = AA

G886AS - no lead time
- PHUF1298G (1 per) - does show Pre Proc LT = 3, Proc LT = 84 - Post LT = 2 - ABC Class = AA

For the first item = G886EC they see safety stock generated at the end item level in the IO plan and not the component level. The 2nd and 3rd items above correctly generate SS only at the component level

EXPECTED BEHAVIOR
-----------------------
Expect IO to plan for SS only for component level = PHUW1000C instead of end item = G886EC

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. Run IO plan
2. Review SS recommendations
3. Find some items are planning SS at end item level unexpectedly


Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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