Oracle Min-Max Planning

Oracle Inventory lets you manage your inventory levels using any combination of min-max planning, reorder point planning, and a replenishment system for generating orders. Inventory planning involves answering two questions:

• When should you place a new order?
• How much should you order?

Using the Oracle Inventory application, you can set up the following types of inventory replenishment plans:

• Min-max planning
• Reorder-point planning
• Kanban replenishment planning
• Replenishment counting
  

Container Pack & Shipping in Inventory Org

License Plate Number

Introduction In Oracle Warehouse Management, a license plate number (LPN) is any object that holds items.  Although LPNs are associated with containers, they do not need to represent a physical entity,  such as a box. Thus, you can define an LPN as a collection of items. Oracle Warehouse  Management enables you to track, transact, and nest LPNs. Oracle WMS provides full  visibility to inventory items that are stored in license plate numbers (LPNs)

Back to Back Order

Back to Back Order Process is a common scenario for Wholesale Distributors who use Sell-Source-Ship business model.

1. Customer places the order with you
2. You place the order with supplier 
3. Supplier ships the product to you
4. You ship the product to customer

For eg. You order a Shoe Rack from Flipkart and Flipkart orders the same to the supplier. Once the goods are received by Flipkart they pack and ship the goods to customer.

Drop Shipment

Drop Shipment Business Process

Receiving orders for items that you do not stock, and have a supplier provide the items directly to your customer is called Drop Shipment. The following diagram illustrates the drop shipment process.

Imagine a scenario where you order a Dell Laptop from Flipkart/Amazon(Order Processing Company). Flipkart doesn’t manufacture the Dell Laptop rather they create an order with DELL to ship the product to customer directly. DELL ships you the laptop and you pay Flipkart on successful delivery. Flipkart pays DELL after successful receipt by the customer on his behalf.