1-1 Copyright © Oracle Corporation, 1999. All rights reserved.
Oracle Advanced Planning & Scheduling
Plan
Execute
Measure
Improve
1-2 Copyright © Oracle Corporation, 1999. All rights reserved.
The Tool we used MRP
• Sequential process
• Unconstrained production, storage, and transportation capacity
• Not optimized
• No capacity decision support
• Re-planning is not triggered by events
1-3 Copyright © Oracle Corporation, 1999. All rights reserved.
Evolution of Advanced Planning Systems
• MRP / MRP II
• Fast, cheap computing power
• Finite capacity scheduling
• Supply chain
• Optimization
MRP MRP II APSAPSfor
e-business
1970 1980 1990 Y2k
1-4 Copyright © Oracle Corporation, 1999. All rights reserved.
History of Oracle APS
• Manufacturing and supply chain planning products
• Third generation of memory based planning products
• Release 11, simultaneous material and capacity planning, online simulation
• Release 11i, optimization and constraint based planning
1-5 Copyright © Oracle Corporation, 1999. All rights reserved.
What is Optimization?• A model represents the essential elements of a
system• Objective criteria are used to evaluate alternative
feasible solutions & feasible solutions satisfy all of the system constraints
• Constraints specify feasibility boundaries for the solution to the model, for example: – resource constraints limit the ability to produce
• Assumptions state conditions that must be met for the solution to be valid
• The optimal solution to a model best satisfies the objective criteria
1-6 Copyright © Oracle Corporation, 1999. All rights reserved.
Optimization Example
• Wire World - World Leader in– Dip Sticks – Croquet Wickets
• Material Constraint = 24 meters of wire– .6 meters for each product
1-7 Copyright © Oracle Corporation, 1999. All rights reserved.
Material Constraint Optimized
OA
B
Wickets
Sticks
FeasibleSolutions
P10
20
30
10 20 30 40 50
X
Material
40
1-8 Copyright © Oracle Corporation, 1999. All rights reserved.
Optimization Example
• Wire World– Make Dip Sticks and Croquet
Wickets• Material Constraint = 24 meters of wire
– .6 meters for each product• Resource Constraint = 300 minutes
– 10 minutes for Dip Stick– 6 minutes for Wickets
1-9 Copyright © Oracle Corporation, 1999. All rights reserved.
Material and Resource Constraint Optimized
O A
B
Wickets
Sticks
FeasibleSolutions
P
S
W
10
20
30
A10 20 3040 50
40
1-10 Copyright © Oracle Corporation, 1999. All rights reserved.
Objective: Maximize Revenue
Point
A
P
S
Wickets@ $0.10
40
25
0
Sticks@ $0.15
0
15
30
Total Revenue
$4.00
$4.75
$4.50
•Objective = Maximize Revenue From Sales
–.15 for Dip Sticks–.10 for Wickets
1-11 Copyright © Oracle Corporation, 1999. All rights reserved.
Optimal Solution
• Use the available resources to produce 25 wickets and 15 sticks
• Assumptions: – Constraints are linear and continuous– Single, linear objective– Only two decision variables (sticks
and wickets)
1-12 Copyright © Oracle Corporation, 1999. All rights reserved.
Objectives of APS Systems
• Global visibility
• Rapid planning cycles
• Better plans
• Fewer plans to synchronize
• Rapid return on investment
1-13 Copyright © Oracle Corporation, 1999. All rights reserved.
Non-Synchronized Architecture
Aggregatedata
Transactiondata
High levelplan
Transactiondata
Transactiondata
Transactiondata
Semi-aggregate
data
Detaileddata
Mid rangeplan
Near termplan
Source: AMR Research
1-14 Copyright © Oracle Corporation, 1999. All rights reserved.
Best in Class APS Architecture
Transactiondata
High levelplan
Transactiondata
Transactiondata
Transactiondata
Aggregatedata
Semi-aggregate
data
Detaileddata
Mid rangeplan
Near termplan
Source: AMR Research
1-15 Copyright © Oracle Corporation, 1999. All rights reserved.
Single Common Data Model
Multi-levelsupplychainplan
Aggregatedata
Semi-aggregate
data
Detaileddata
Common data
model
Common memory model
1-16 Copyright © Oracle Corporation, 1999. All rights reserved.
Big Picture
D2Miami
Supplier
D1Singapore
M2Boston
S1
Chicago
Supply ChainPlanning Engine
Supply ChainAvailable to Promise
BIS, SCPPI
Demand Planning
TransactionSystems
R11i
R10.7
R11
Other
D1
D2
M2
S1
Supl.
Multi- Org.PlanningServer
Net C
hange Snapshot
1-17 Copyright © Oracle Corporation, 1999. All rights reserved.
Holistic Planning, Scheduling and Optimization
• Features
One plan
Suppliers ConsumersMFG
partner
Virtual manufacturer
Logistics partner
Internet
InternetInternet
Internet