As we saw in the last post Oracle Advanced Inventory Planning (AIP). AIP is a module that was developed to organize and manage the replenishment of retailers, especially retailers with large volumes of products and complex relationships in the supply chain.
So let’s talk about how the AIP is organized to meet the different needs that exist within the supply chain and how we can organize our information to work with AIP.
To achieve the goal of replenishing within the entire supply chain, AIP is divided into 4 different modules; each module accounts for a necessity of solution (some are very complex). The modules we have are:
- Data Management (DM)
- Store Replenishment Planning (SRP)
- Warehouse Replenishment Planning (WRP)
- Order Management (OM)
Data Management (DM)
Data Management (DM) is responsible for maintaining the supply chain information. This information is important for construction and restriction of each structure within the supply chain. Some information we have are:
- Cycle Order
- Deliver/receive dates of Stores/Warehouses
- On sale/off sale dates of Stores/Products
- Relation Source-Destination
- Store and Supplier SKU-pack sizes
Many information defined within the DM can be found within Oracle Retail Merchandise System (RMS). But when we using the DM, we have a broader view of all informations; such as the delivery calendar of a given combination store/product, we can have a plan in one week, two week or one month.
Store Replenishment Planning (SRP)
Store Replenishment Planning (SRP) is responsible for generate the replenishment plan of the stores. This view allows planners interact with the system from the perspective of store; with daily information and several projected metrics.
Many metrics in SRP are calculated according of receipt days of stores, with this the planners have a vision of many projected measures; If sometimes will happen, the planners can prevent any issues; In SRP has multiple measures, such as:
- Forecast Demand
- Projected Inventory
- Promotion Presentation Stock
- Receipt Plan
- Safety Stocks
SRP receives information from Retail Merchandise System (RMS) to support the calculation of projected measures; SRP receives information from Retail Demand Forecast (RDF) to support the projected demand of stores.
Warehouse Replenishment Planning (WRP)
Warehouse Replenishment Planning (WRP) is responsible for the generate replenishment plan of the warehouses. This plan allows planners interact with the system from the perspective of distribution centers, see the daily measures and several important projected metrics.
WRP uses the stores plan – SRP like demand of warehouses (all transfers to be made to the stores). Since we have a future plan to transfer all the stores, AIP will calculate if need to request an order to the supplier to meet future demand. Some metrics we have in the WRP are:
- Total Forecast Demand
- On Order/in Transfer Details
- Supplier Purchase Quantity (SPQ)
- Expected Receipts
- Projected Inventory
WRP receives information from Retail Merchandise System (RMS) to support the calculation of projected measures
Order Management (OM)
Order Management (OM) is responsible for managing the purchase and transfer of the entire chain. All purchase orders and transfer suggested by the SRP and WRP are forwarded to OM to be approved by buyers or allocators, when they are approved, they are send to Retail Merchandise System (RMS) to be execute.
It’s important to remember that any change/cancellation of orders or transfer will impact future calculations in SRP and/or WRP.