Cradle to Grave Cycle using Supply Planning Cloud and Global Order Promising

Cradle to Grave cycle is often used to describe how a material demand in terms of customer forecast progresses into a firm demand with an actual sales order and eventually dies after satisfying the customer commitment to fulfil and ship in time. In its journey, the demand goes through multiple changes and has to reposition itself to meet supply requirement through multiple backlog management activities. In this blog, you will learn the system behavior of Oracle cloud planning and global order promising modules for events occurring in the day of life of a planner.

The above diagram illustrates the journey of (1) Receiving the forecast from the customer (2) A nightly MRP plan run will pick up the demand and drive the underlying component supplies by suggesting work order and purchase order for Make/Buy items. In stage 3, which can happen after a much longer duration, the customer sends the PO which in turn gets booked as a Sales Order in Oracle. Stage 4 will make an initial scheduling call and provide the dates based on the lead time or supply depending on the configuration selected. In stage 6, MRP plan runs again and considers the firm demand and consumes the forecast and thereby re-adjusting the supplies accordingly. In certain cases, the customers can choose to drive supplies on forecast using a "Planning BOM" as the fine details and configurations might not be known by then. This is often a case with "Build to Print" contract manufacturing companies that are dependent on customer signals. Between stage 6 and 7, the order might go through multiple change especially in a high mix environment or companies that fall in the far left of the value chain (Component manufacturers or component equipment manufacturers). Finally, the order gets shipped out in stage 8 and thereby fulfilling the customer demand ensuring the lead time and operational metrics is attained.

Stage 1 & 2 - Receive Customer Forecast and subsequently run MRP

MRP Plan Suggestion

• Planned Work Order for the Make Item
• Determines the Suggested Completion Date based on the "Longest Lead Time Component + Resources" OR Request date whichever is later
• Suggest Planned Orders for Components & Sub-Assemblies based on the Make Item Suggested Start Date
• Calculate Material Available Date Based on the Planned Work Order Completion Date
• Calculate Exceptions on Resources & Supplies
• Suggest Expedites to meet the Request Date (RD) where  RD is inside the Assembly Cumulative Total Lead Time (TLT) and no on time supply exist

Stage 3 & 4 - Sales Order is entered and Initial Scheduling results is based on MRP plan

Note: Global order promising in cloud (Rel 20D) provides ATP dates only based on the collected data

chedule Ship Date (SSD) will match Need by Date (NBD) if:

• Assembly On Hand is available
• OR Supply Constraints identified against Forecast demand have been sorted and promised early or on time
• Component On Hand is available OR NBD is outside Assembly Cumulative Total Lead Time 

Schedule Ship Date (SSD) will be delayed if:

•       NBD is inside the Lead Time AND

•       Assembly On Hand is not available some or all Component Supplies based on forecast do not exist or are delayed

•       Component On Hand is not available

•       SSD will be based on the Longest pole in PO promised dates or Component LT + MLT (manufacturing lead time) of Assembly

Stage 6 - Backlog Management

• How do planners identify list of orders to pull in?

Same as Initial scheduling, SSD will continue to be delayed until the supply picture improves

Expedite Recommendations on Demand Fulfillment

Late Supply Pegged to Sales Order

Use Supply Shortage Report (not an out of box report)

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