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Safety Stock Generated By IO Plan Is High When Compared To Forecast Numbers (Doc ID 2463842.1)

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

Using 64 bit IO Planner and snapshot for Linux - Using 64 bit IO Planner with version MSRNWL64.ppc 120.17.12020000.34.1220401.76 from one off patch 26177965 - Users are on 12.2.4 and have applied VCP Cum Patch 12.2.4.1 - 19549533

Plan name = GLOB_Plan7 - Planned Items = AA - No item sim set - Assign Set = Global Assign - Service Level Set = SVL -54 weeks/0 periods - KPI enabled - All plan level penalty factors are 20% except Demand Lateness = 100% - SS Freq change is not setup - Many orgs and all netting check boxes enabled - Enabled Enforce Service Level Constraints with default = 98% - Fulfillment LT = 2.00 - using a service level set by category

For a couple of items users are seeing high SS values generated vs the forecast for the items. Users are expecting SS around 500 for both items Example data

Item = AC item id = 261747
Org = PRD:US2 org id = 140
dependent demand from 354 to 37
SS runs from 1027 - 263 would seem to be kind of high.
FDS = 5 - PTF = 15 days -
Cat name = Tier 2 - Pre Proc LT = 3 - Proc LT = 56 -
Std Cost = 97.24 - Carrying Cost = 9% -
ABC Class Name = AA - intermittent demand = 2 (no)

Item = PM
Org = PRD:US2 item id = 154239
Dependent demand runs from 2840 to 179 but it is there every week
SS runs from 18395 to 937 - would seem to be kind of high.
FDS = 5 - FLM = 24 - PTF = 7 days -
Cat Name = Tier 1 - Pre Proc LT = 3
Proc LT = 84 - Std Cost = 16.32 - Carrying Cost = 9% -
ABC Class Name = AA - intermittent demand = 2 (no)

EXPECTED BEHAVIOR
-----------------------
Expect SS values around 500 for both items

STEPS
-----------------------
The issue can be reproduced at will with the following steps:
1. Run IO Plan
2. Review SS IO plan output
3. Find some item/org combinations that appear to have very high SS values vs forecast inputs

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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