A material shortage occurs whenever unsatisfied demand exceeds available quantity for incoming supply of material. Oracle Inventory checks, during a receipt transaction, to see if the material received is needed elsewhere in the organization. If a shortage exists, the system notifies you, either by a real-time, material shortage alert or a workflow-based notification.
The following receipt transaction forms generate shortage alerts and notifications when receiving items for which the system has detected a shortage.
Receipts
Receiving Transactions
Miscellaneous Transactions
WIP Material Transactions
WIP Completions
Work-Orderless Completions
The shortage alert appears in the window during the transaction. It gives you the option to go to the View Potential Shortages form, which shows where demand exists in the organization.
Notifications are sent to pre-specified individuals.
In generating shortage alerts and notifications, the system considers the following to be sources of demand:
WIP jobs
WIP schedules
Sales order lines that have been pick released and allocated but for which adequate quantity was not sourced
You can specify which inventory transactions trigger a shortage alert or notification. The system considers only the transaction types you select to be supply for the unsatisfied demand. Shortage alerts and notifications are triggered for system-defined and user-defined transaction types that have transaction actions of:
Receipt into stores
Intransit receipt
Direct organization transfer
Assembly completion
Negative component issue
Define the shortage parameters the system uses to detect material shortages see: Defining Shortage Parameters
Define the transaction action types that trigger shortage alerts and notifications see: Defining and Updating Transaction Types
Define which items trigger a shortage alert of notification when they are in demand. see: Defining Items and Inventory Attribute Group
Define the individuals to be notified. see: Defining Shortage Parameters