Unit of Measure (UOM)

A Unit of measure is a value that specifies the quantity of an item.

We define unit of measure for tracking, moving, storing and counting items.

Primary Unit of measure: This is the UOM which can be used for tracking, counting the onhand quantities and to calculate during any transactions.

Secondary Unit of Measure: If business needs to track any item in dual unit of measure, then we need to define a secondary UOM for the item if there is no constant conversion available with the primary UOM. For example, in a cake shop cakes can be measured as Each and Pounds and here constant conversion not possible.

If an item is under dual unit of measure control the system tracks on-hand quantity based on both the primary and secondary units of measure. For example, you can track an item in both each and liter.

Uses of Unit of Measure

·         Planning Products

o   Forecasting and consumption

o   Master scheduling

o   Material requirements planning

·         Work in Process

o   Shop floor moves

o   Resource transaction

o   Completion and return transactions

o   Inquiries and reports

·         Bills of Material and Engineering

o   Defining bills of material

o   Defining engineering items

Unit of Measure Class

Unit of measure classes represent groups of units of measure with similar characteristics. A unit of measure class contains a base unit of measure. You use the base unit of measure to perform conversions between units of measure in the class. For this reason, the base unit of measure should represent the other units of measure in the class, and be one of the smaller units. For example, quantity is a unit of measure class and each, dozen, and gross are examples of units of measure within the class. The unit of measure each is the base unit of measure for this class. 

Units of Measure Conversions

A unit of measure conversion is a mathematical relationship between two different units of measure. For example, 16 ounces = 1 pound, or 2.2 pounds = 1 kilogram. If you want to transact items in units of measure belonging to classes other than their primary UOM class, you must define conversions between the base units of measure in different UOM classes.

Lot-Level Unit of Measure Conversions

Lot specific conversions enable you to perform a specific inter-class conversion for a given lot. This enables you to establish more granular control over the transactional quantities of a lot. For example, the standard inter-class conversion for a lot controlled item is one gallon equals 15 pounds; however, when you receive a particular lot of the item, 1 gallon equals 16 pounds. You can create a lot specific unit of measure for this instance.

You can create lot-specific unit of measure conversions for on-hand lots or lots with a zero balance. If you create a lot-specific conversion for a lot with on-hand quantities, you can automatically update the quantities in the system to more accurately reflect the on-hand quantity.

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Implementation Considerations

Few question need to be answered before going to implement Oracle Inventory

When you set up your organizations you need to determine the organization type. For example, you need to determine if the organization is a process or a discrete organization and if you are using Oracle Warehouse Management. You can use Oracle Warehouse Management and Oracle Process Management in the same organization. You should not however, use Oracle Asset Management with Oracle Warehouse Management or Oracle Process Execution. If you plan on using Oracle Warehouse Management you need to determine if you are going to use the Warehouse Control system. If this organization transacts business with Japan, Taiwan, or Korea you can enable Chargeable Subcontracting for the organization. You must consider all of this information before you create items or process transactions.

Subinventories:

·         Is it necessary to differentiate between receiving and storage subinventories in your warehouse?

·         Do you need to link your receipts to a receiving location?

·         Do you need to track material without it appearing in on-hand quantity?

Locator Control:

·         Do you need to implement locator Control?

·         Do you need to implement locator control for the organization, for individual subinventories or at the item level?

·         Should locator control be predefined, just-in-time or both?

Organization Access:

·         Should all responsibilities have access to the organization?

·         Which responsibilities should have the access to the organization?

Shipping Network:

·         Do you need to ship material between organizations?

·         Do you need to track inventory between transfers?

·         How do you want to ship material between organizations?

·         Do you Ship material to Japan, Korea or Taiwan?

·         Who owns the material until receipt, shipping organization or receiving organization?

·         Which receipt routing do you use, Standard, Direct or Inspection?

·         Is an internal order required for each shipment?

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