Inventory Glossary - R

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R

rate-based capacity

Capacity planning at the production line level. Required capacity, available capacity, and capacity utilization are calculated for individual production lines. Required and available capacity are stated in terms of production rate per line per week.

raw materials

Purchased items or extracted materials that are converted by the manufacturing process into components and/or products.

receipt

A shipment from one supplier that can include many items ordered on many purchase orders.

related item

An acceptable substitute you define for an item so that you may receive the item if your supplier cannot ship the original item on the purchase order.

reorder point planning

An inventory planning method used to determine when and how much to order based on customer service level, safety stock, carrying cost, order setup cost, lead time and average demand.

repetitive manufacturing

A manufacturing environment where you build assemblies repetitively, on production lines, rather than in discrete jobs or batches.

repetitive schedule

A production order for the manufacture of an assembly on a continuous basis as defined by a daily rate, using specific materials and resources, over a period of time. A repetitive schedule collects the costs of production, but you report those costs by period rather than by schedule. Also known as flow order or scheduled rate.

reservation

A guaranteed allotment of product to a specific sales order. A hold is placed on specific terms that assures that a certain quantity of an item is available on a certain date when transacted against a particular charge entity. Once reserved, the product cannot be allocated to another sales order or transferred in Inventory. Oracle Order Entry checks ATR (Available to Reserve) to verify an attempted reservation. Also known as hard reservation.

resource

Anything of value, except material and cash, required to manufacture, cost, and schedule products. Resources include people, tools, machines, labor purchased from a supplier, and physical space.

return material authorization (RMA)

Permission for a customer to return items. Receivables allows you to authorize the return of your sales orders as well as sales made by other dealers or suppliers, as long as the items are part of your item master and price list.

return to supplier

A transaction that allows you to return to the supplier items from a fully or partially received purchase order and receive credit for them.

revised item

Any item you change on an engineering change order. Revised items may be purchased items, subassemblies, finished goods.

revision

A particular version of an item, bill of material, or routing.

revision control

An inventory control option that tracks inventory by item revision and forces you to specify a revision for each material transaction.

route sheet

A report that provides full routing, operation, resource, and material requirement details for jobs and repetitive schedules. Typically used to know how, when, where, and who builds an assembly. Also known as traveler.

routing

A sequence of manufacturing operations that you perform to manufacture an assembly. A routing consists of an item, a series of operations, an operation sequence, and operation effective dates.

routing-based capacity

Capacity planning at the resource level. Required capacity, available capacity, and capacity utilization are calculated for individual resources assigned to operations on routings. Required and available capacity are stated in terms of hours per resource per week.