How to Include Transfer Order Demand in Oracle Replenishment Planning's ADD Calculation?
In the standard Oracle setup, the calculation for Average Daily Demand (ADD) relies primarily on Gross Forecast and excludes dependent demand types like Transfer Orders.
This exclusion causes inaccurate replenishment policies, particularly for organizations that rely on internal demand from other locations.
Specifically, in Replenishment Planning, while Org A (a production pharmacy supplying itself and Org B) correctly removes planned transfers from its on-hand units using the Unconstrained Planned Order Demand measure, the corresponding transfer demand is not added to the VS Total Demand.
This omission at the production pharmacy leads to inaccurate calculations for:
- Average Daily Demand (ADD), as it is based on Gross Forecast instead of Total Demand.
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