The statement that “Supply plans ignore items with the ‘planning method’ attribute set to MPP” is incorrect. Items with this planning method are included as long as relevant configurations are active. All other statements are true, reflecting how item attributes interact with Oracle Planning Cloud functionalities​

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QUESTION NO: 22

As Materials Manager, you are always attentive to Finance's concern about high inventory levels. To that end, you arranged to off-load procurement and storage of several expensive components to become the responsibility of your contract manufacturer. You modified the bills of material accordingly. You thought this would satisfy Finance, but they complained to you that even though production levels have remained flat, they are not seeing a reduction in inventory.

What is the problem?

A. The "supplier" box for the "Supply Types to Include" plan option of Manage Plans has not been deselected.

B. The "supplier" box in Manage Plant Parameters has not been deselected.

C. The supply type has not been changed to "supplier" for the affected components in the Item Structures of the contracted items.

D. The "supplier" box on the Organization tab in Maintain Supply Network Model has not been deselected.

Answer: C

When transitioning procurement responsibility to a contract manufacturer, it is essential to adjust the supply type of the contracted items to "supplier" within the item structures. This change ensures that the inventory associated with these components reflects their new procurement source, helping reduce your reported inventory levels. Without this adjustment, Oracle Planning may still consider these items as being managed internally, thus failing to reflect the reduction in inventory as anticipated​

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