Oracle Supply Chain Managment Handbook: Inventory Glossary

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make-to-order: An environment where customers order unique configurations that must be manufactured using multiple discrete jobs and/or final assembly orders where the product from one discrete job is required as a component on another discrete job. Oracle Manufacturing does not provide special support for this environment beyond the support it provides for assemble-to-order manufacturing.

master demand schedule: The anticipated ship schedule in terms of rates or discrete quantities, and dates.

master production schedule (MPS): The anticipated build schedule in terms of rates or discrete quantities, and dates.

master schedule: The name referring to either a master production schedule or a master demand schedule. See master demand schedule and master production schedule

material overhead: A rate or amount you allocate to the cost of your item, usually based on the total material value of the item. Typical examples include material handling, purchasing, and freight expenses. You may also charge material overhead on assembly completions and purchase order receipts as a fixed amount per item or lot, or base it on your activity costs. See also overhead

material overhead default: Defaults you create for your material overheads. Used when you define your items. Your material overhead defaults may be for all items in an organization or for a specific category.

material overhead rate: A percentage of an item cost you apply to the item for the purposes of allocating material overhead costs. For example, you may want to allocate the indirect labor costs of your manufacturing facility to items based on a percentage of the item's value and usage.

material requirements planning (MRP): A process that utilizes bill of material information, a master schedule, and current inventory information to calculate net requirements for materials.

material transaction: Transfer between, issue from, receipt to, or adjustment to an inventory organization, subinventory, or locator. Receipt of completed assemblies into inventory from a job or repetitive schedule. Issue of component items from inventory to work in process.

Maximum Order Quantity: An item attribute the planning process uses to modify the size of planned order quantities or repetitive daily rates for the item. For discretely planned items, when net requirements exceed the maximum order quantity, the planning process suggests the maximum order quantity. For repetitively planned items, when average daily demand for a repetitive planning period exceeds the maximum order quantity, the planning process suggests the maximum order quantity as the repetitive daily rate. Use this attribute, for example, to define an order quantity above which you do not have sufficient capacity to build the item.

min-max planning: An inventory planning method used to determine when and how much to order based on a fixed user-entered minimum and maximum inventory levels.

Minimum Order Quantity: An item attribute the planning process uses to modify the size of planned order quantities or repetitive daily rates for the item. For discretely planned items, when net requirements fall short of the minimum order quantity, the planning process suggests the minimum order quantity. For repetitively planned items, when average daily demand for a repetitive planning period falls short of the minimum order quantity, the planning process suggests the minimum order quantity as the repetitive daily rate. Use this attribute, for example, to define an order quantity below which it is not profitable to build the item.

model item: An item whose bill of material lists options and option classes available when you place an order for the model item.

multi-source: An AutoCreate option that lets a buyer distribute the quantity of a single requisition line to several suppliers whenever the buyer wants to purchase the requisition line item from more than one supplier.

Oracle Supply Chain Managment Handbook