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1、.,1,Hand SCM Internal Training -VMI VMI is based on MIN-MAX planning logic. VMI items should not planed by MRP. But you can use MRP as an assistant,42,Will Min-Max planning conflict with VMI?,Traditional Min-Max only consider the internal planed stock while VMI only consider the supplier planed stoc

2、k. Set item level Min-Max=total MinMax-total supplier managed MinMax,43,Can VMI be combined with Consignment,VMI is a planning method, involve suppliers into material planning. It is a kind of Collaborative Planning. Consignment is more a financial policy. The key point of consignment is Pay on Use.

3、 It can reduce the inventory holding cost and increase inventory turn. My point of view: most of consignment business are suitable to use VMI (or collaborative planning).,44,What is Consign Solution for Suppliers,A supplier using the Oracle Applications internally will need to ship inventory but not

4、 bill the customer until confirmation is received that the inventory was consumed. Use the shipping feature of trip stop planning. In case of FOB point being customer destination then perform the ship confirm but do not close the trip and defer the inventory interface. This way the inventory is stil

5、l held in the Inv org. Once the goods are received, update the Trip and allow inventory interface (COGS) and AR invoicing. Map COGS account to Intransit account. Control the Invoicing process by workflow wait activity before fulfillment if its fixed days based. Use an extension to systematically rev

6、ert and book actual COGS once the line is invoiced. Alternatively use invoice hold in the above case. In R12 we have a new feature called Deferred Revenue Recognition,45,How to Resolve FIFO in Commingled Cases?,Say: 20 consigned goods and 19 regular goods commingled in one warehouse Consigned goods receipt date earlier than regular goods How to use regular goods first? Solution: Trick system. Transfer 20 PCs to regular then transfer back to consign. Now the regular inventory re

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