Move Orders

Types of Move Orders

There are three types:

 Requisition Move Orders

 Replenishment Move Orders
 Pickwave Move Orders

Requisition Move Orders are used to manually create requests to move material.
These move orders may have multiple lines each for a separate item. If the move order
requires approval, then it cannot be transacted unless the planner for the specific item
approves it. To approve move orders we need some additional setups. Therefore, we will
take a look at it separately at the end of this page.

There is another step prior to transacting the Requisition Move Order. The material
needs to be allocated. This means making an informed decision on which subinventory to
source the material from and reserving it there. If picking rules have been set up in
Oracle Inventory the allocation process will use these rules to determine the source
subinventory.

Finally, the Requisition Move Order is ready for transacting. At this stage the user may
choose to print a pick slip for the material handler to know where to get the material
from.

Replenishment Move Orders pre-approved move orders that are created automatically
by Oracle Inventory. These move orders get created when there is a requirement for
material and any of the following inventory replenishment methods are used:

 Min-Max planning
 Replenishment counting
 Kanban replenishment

Now, since a move order is a tool for sourcing material within an inventory
organization, Replenishment Move Orders are generated only when the material is
sourced from another subinventory within the same inventory organization. For this the
move order Source Type must be set as Subinventory.

Pick Wave Move Orders are used in Order Management. The Oracle Shipping Execution
pick release process generates a Pick Wave Move Order to move the material from its
source location to the Staging subinventory. In effect, this is a subinvenotry transfer
through a pre-approved and ready to transact move order.
Move Order Setup at the Organization Parameter level
There move order approval process is governed by two parameters

 Move Order Timeout Period

 Move Order Timeout Action

The Move Order Timeout Period field specifies the number of days the Move Order
waits for approval. In the screenshot above we see that for Office Smart Naperville,
the Timeout Period has been set to 10 days. The first time the move order is created
a notification is sent to the approver. If the approver does not take any action, then
there will be a wait time of 10 days after which he will receive a second notification.
Then after a second Timeout Period the move order is automatically accepted or
rejected depending on the value in the Move Order Timeout Action field.
The Requisition Move Order
Defining Employees
Jennifer has performed some setups in the Vision instance to create her demo. She
has identified two material planners from the Office Smart Naperville plant OSN.
They are Steven Hall and Simon Buckner. She defines these two individuals as
employees using the Human Resources responsibility.

Defining Steven Hall and Simon Buckner as users

This is more of a system administration task but Jennifer needs to carry it out
because it is a mandatory step in her demo. Jennifer defines these two individuals as
users in her Vision instance and assigns their respective employee names in the
Employee field. She then assigns the Inventory responsibility to each of them.

Defining Item Planners

Jennifer then decides to add Simon Buckner as an item planner using the Inventory
Responsibility. It is not necessary to associate the name of an item planner with an
employee defined in HR. However, the advantage of doing so is distinct in that the
employee can receive notifications through Oracle Workflow whenever there is a
Move Order (or any other document that has an approval workflow) awaiting his
review/approval. This is the approach that Jennifer intends to demonstrate.
Jennifer has defined an item called the Linear Hub in the Vision org M1. She then
proceeds to assigning Simon Buckner as the planner for this item.

Time to request a material transfer

Steven Hall is in need of the item LH101. He knows that he has to raise a move
order to request this material from its planner. So, he logs into apps as shown below

When creating the Move Order he has to select the Transaction Type as Move
Order Transfer. The Move Order Type defaults as Requisition as shown below.

At the move order line level, there are four tabs:

 Item
 Project and Task
 Source
 Destination
 Control

Since Office Smart Naperville is not a project enabled organization therefore, theProjects
and Tasks tab is of no relevance to Steve.

In the Item tab, he specifies the item code, quantity needed to be transferred, the unit
of measure and the required date. Steve wants 20 units of LH101.

In the Source tab Steve needs to specify the source subinventory from which the
material will be drawn. However, he is not sure as to which subinventory has adequate
on-hand balance of the item LH101. So he uses the On Hand button to call the Material
Workbench. He finds that Stores is the only subinventory in the M1 organization that
has the item LH101.

There is a stock of 100 units of LH101. Steve needs 20. So he selects

the Storessubinventory as the source subinventory.

In the Destination tab, Steve selects the Floorstock subinventory as the final location
where the material needs to be transferred.

Initiating the Move Order Approval Process

Finally, Steve clicks on the Approve button to launch the approval process. The
Move Order goes into Pending Approval status as seen below.
At this point Steven Hall logs out and waits for further action on his move order.

Now, Simon Buckner logs in.

Upon logging in, Simon is greeted with a notification from Steven Hall that says Line
1 of Move Order 2060426, requires your Approval.
Simon clicks on the Subject line link to open the notification.

The notification essentially contains a summary of the move order with the following four
options for action:

 Approve
 Reject
 Reassign
 Request Information

Simon clicks on the Approve button to signal his consent for the transaction. Upon doing
so, the notification disappears from Simon’s Worklist.

In the real world, at this point Simon may choose to call Steve and communicate to him
the approval of the move order. However, this is optional as Steve will come to know of
this the moment he logs in.

Transacting the Move Order

Steven Hall logs in again. He finds that Simon has approved his Move Order.
A Point to Ponder

Why do two lines of notifications appear for the same move order?It is because a
move order may comprise multiple lines with varying item, required date, source and
destination subinventory combinations. If the lines have items that are assigned to
different material planners then material planner A may get a notification to approve
Line 1 while material planner B would get a notification to approve Line 2, and so on.

Similarly the creator of the Move Order would get a notification for each line that gets
actioned, such as an approval for Line 1 and rejection for Line 2.

If Steve queries the Move Order at this point, he will find that the status has changed
to Approved.

So, Steve can move onto the Transact Move Orders form. In this form, Steve chooses
to allocate or reserve his 20 units of LH101. To do so, he clicks on theAllocate button.
Having done so, he may decide that he needs only 18 units, instead of the need for 20
units that he had anticipated earlier. He uses theView/Update Allocations feature to
change the Quantity from 20 to 18. Accordingly, the system adjusts the Allocated
Qty to 18. The Requested Quantity however retains the original figure of 20.

To enable his material handlers to physically move the material, Steve has to give
them some instructions. So, he launches the Move Order Pick Slip program by
selecting the Print Pickslip option from the Tools menu.
Steve’s pick slip shows that 18 units of item LH101 are pending movement from the
Stores subinventory to Floorstock subinventory. This information tells the material
handler he needs to physically move these parts. The pick slip also shows that 2 units of
LH101 remain Unallocated.

Steve clicks on the Transact button to transact the move order.

This results in 20 units of LH101 being deducted from the on-hand balance in the Stores
subinventory and the same quantity added to the Floorstock subinventory.

The Material Workbench will prove that this material transfer has indeed taken place.
The Pick Wave Move Order
A Pick Wave Move Order is born out of the pick release process in Oracle Order
Management. The pick release process generates these move orders to bring the material
from its source subinventory to the Staging subinventory. This transaction is a
subinventory transfer. These move orders are generated automatically by the Oracle
Shipping Execution pick release process.

Pick wave move orders are pre-approved and ready to transact. Pick slips and other
shipping and inventory reports are available with Order Management.

Inventory Guys review the Pick Wave Process

Continuing of his internal test pilots at Office Smart Solutions (OSS), Travis has
sought Jennifer’s help in exploring the association of move orders with the pick
release process.

A Sales Order is Required

For the process to be initiated, a sales order has to be booked in Order Management.
Jennifer the lead consultant for the Inventory module creates an order.

Releasing the Sales Order

Jennifer now prepares to release the sales order.
To be able to manually transact the Pick Wave Move Order, she has to ensure
that Auto Pick Confirm is set to No.

A message confirms that the process has been completed.

Also, at this stage Jennifer notices that the Pick Wave Move Order number is
displayed in the Batch field. She needs to look for the move order number 2055426.

Querying the Pick Wave Move Order

Jennifer moves over to the move order form and queries for the Move Order
2055426.
Pick wave move orders are always pre-approved. The only work that remains is to
transact them.

Transacting the Move Order

This process is the same for any move order. However, the destination subinventory
defaults to the Staging subinventory.

When the transaction is done, the items get moved to the staging subinventory for
shipping.

Finally, sales orders are considered unfulfilled, when the pick wave move order has an
allocated quantity that is less than the requested quantity. An unfulfilled pick wave move
order occurs at pick release, if initially there is an insufficient quantity available. An
unfulfilled pick wavemove order occurs at pick confirmation, if the picker does not
confirm the full quantity. An unfulfilled pick wave move order occurs at shipment
confirmation when you backorder at ship confirmation.
Min-Max Planning and Move Orders
Min-Max planning is one of the three major replenishment methods in Oracle
Inventory. The others are – Reorder Point Planning and Kanban Replenishment. Min-
Max planning can be executed either at the inventory organization level or at the
subinventory level.

What is Min-Max Planning?

Min-Max planning is a tool for planning inventory that looks at user-defined minimum and
maximum inventory levels. It does not consider lead times.

If the Min Max planning is performed at the organization level for an item, then the
minimum and maximum quantities need to be defined at the organization level.

In this session we shall see Min Max being performed at the subinventory level and so the
minimum and maximum inventory levels will be defined at the specific subinventory
level.

Defining a Min-Max Item

Evan begins by creating an item in the Item Master. In the General Planning tab, he
selects the Inventory Planning Method as Min-Max.

The other options are:

 Not Planned
 Reorder Point
 Vendor Managed

He also chooses to enter a value for the Minimum Min-Max Quantity and aMinimum
Order Quantity. This would come in handy if the item were to be planned at the
organization level. However Evan chooses to execute Min Max at the subinventory level,
as the next steps will show.
As required, he saves his work and assigns the item to the M2 organization (Boston
Manufacturing) in the Vision instance.

Creating a Supply Demand Balance

Evan wants to make sure that he has two subinventories – one with an adequate supply
of the item and one with zero on hand balance for that item. He selectsStores for the
first and FGI for the second.

Evan uses Miscellaneous Receipt to create an initial on hand balance of 500 units of item
ECDXSS in the Stores subinventory.

Min-Max Setup at the Subinventory Level

Evan now focuses his attention on the FGI subinventory. Something has to be done
in the setup of this subinventory to indicate that FGI will source this item from
the Stores subinventory when the on hand quantity goes below a designated
minimum.

In the Planning tab for the FGI subinventory, Evan specifies that the item ECDXSS is
Min-Max driven whenever it resides in FGI. And whenever the quantity falls below
the Min Qty of 50 in FGI, it will be time for Min-Max to trigger a replenishment.

The quantity of 500 is just the suggested quantity to maintain as the maximum on hand
balance.

In the Order Modifiers tab Evan has an opportunity to specify a Fixed Lot Multiple of
80. This implies that the quantity for replenishment will be suggested (calculated by the
Min-Max algorithm) in multiples of 80.

Finally, in the Sourcing tab, Evan mentions that Stores will be the sourcing
subinventory.
The Function of the Min-Max Planning Report
The only task that is left is to run the Min-Max Planning report. This report serves to
highlight items that need replenishment and also suggests the replenishment
quantity based on the setup that Evan has created.

Evan looks at the report output.

But when he looks at the Reorder Quantity of 560 Evan realizes that his Order
Quantity Multiple of 80 has been considered. The Max Qty for Min-Max had been set
to 500. So, the algorithm tries to reach 500 using multiples of 80. However, upon
reaching the 480 mark it still falls short of 500. The system therefore adds another
80 units to arrive at a Reorder Quantity of 560.
It Also Does This!
Unlike most reports, the Min-Max Planning report can also trigger the replenishment
process. This means creating Pre-Approved Move Orders to fulfill the suggested
replenishment quantity.

To launch the replenishment process, Evan runs the Min-Max Planning report with the
parameter Restock set to Yes. But, that's not the end of the line.