Facilitated Learning Guide

Ready to Serve
(RTS)

Class #7515
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 Table of Contents

About this Facilitated Learning Guide............................................................................................ 4

Overview and Objectives................................................................................................................ 5
1.0 Key Concepts and Terms .......................................................................................................... 7
2.0 Supply Chain Planning at The Home Depot............................................................................. 9
2.1 The Home Depot and the F&R Organization ......................................................................... 12
2.2 The Home Depot Hierarchies ................................................................................................. 17
3.0 F&R Process and System Functionality Overview................................................................. 22
3.1 Knowledge Check................................................................................................................... 31
4.0 Day/ Week in the Life of an F&R Inventory Analyst............................................................. 32
5.0 Overview of the Technical Exception Monitor Process ......................................................... 34
5.1 Monitor Export Process from THD Tools .............................................................................. 36
5.2 Knowledge Check................................................................................................................... 47
6.0 Exception Management Overview.......................................................................................... 48
6.1 Master Data Exception Management Process......................................................................... 50
7.0 Review .................................................................................................................................... 61
8.0 Skills Practice.......................................................................................................................... 62
9.0 Next Steps ............................................................................................................................... 63
Appendix....................................................................................................................................... 64
Solutions Key................................................................................................................................ 66
Learning Evaluation...................................................................................................................... 70

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About this Facilitated Learning Guide

This guide is yours to keep. Please write whatever notes you require, answer questions and
complete activities directly in the guide. At times you will be provided direction to complete an
exercise in the training environment. Your Business Coach will assist you in how to log onto the
system to complete these activities.

Throughout the guide you will see icons to cue you to take particular action or describe the
content. These icons include:

Icon Meaning/Action
Read the objectives for the course or module.

Keep in mind the suggested time allowed for this module.

Complete the exercise in the training environment.

Complete the activity in the guide.

Represents a concept or idea.

This is a key concept to the module.

The course will provide an approximate time to complete each activity. Depending upon your
background and level of expertise, you may already be familiar with some tasks discussed. In
those cases, you will likely complete the activities in less time than suggested. Regardless of
your experience and expertise level, you will want to complete all of the modules to ensure you
are familiar with the processes, tools and resources that are unique to our company and THD
Tools.

To complete this facilitated guide, work with your Business Coach to schedule time to complete
each module/course and conduct follow up with your Coach to review your progress and answer
your questions. It is important to schedule training and follow up to ensure you are able to
complete daily job related tasks and still execute the learning you require to be successful.

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Overview and Objectives

The Ready to Serve (RTS) course covers the processes and tasks of the Ready to Serve (RTS)
group. This course outlines a number of tasks that are technical in nature and are the sole
responsibility of the Ready to Serve group. The focus of these tasks is on forecast and
replenishment (F&R). Upon completion of this course, the Associate will be able to:

• Define key concepts and terms

• Provide business context for the F&R system and process to be used by the
Central F&R group
• Provide an overview of the F&R system and processes
• Provide an overview of the process used to monitor technical exceptions
• Provide an overview of the process used to monitor and resolve other F&R
exception using the exception workbench

Course Length: 2 Hours, 45 Minutes

Pre-Requisite Courses: There are no pre-requisite courses for this course.

Getting Started

The first step to RTS is building a common language of terms and concepts. The following
module provides a list of key concepts and terms.

Please Note:

The THD Tools system uses the terms article and site to describe a specific item and store or
DC. The F&R system uses the terms product and location in place of article and site. The
terms article site and location product are interchangeable but are used in conjunction with the
system discussed.

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1.0 Key Concepts and Terms

Suggested Time: 5 Minutes

Below is a list of key concepts and terms that appear frequently throughout this course. Take a
few minutes to review each of these terms.

Forecasting & The process of estimating product need for a specific amount of
Replenishment time and acquiring that product on a recurring basis to support
the anticipated need.

For example, Ryobi drills are forecasted and replenished on an

ongoing basis for the Mississauga store location.

Master Data Data that remains the same over a long period of time. Master
data information is needed often and in the same form, such as
products and locations.

For example, some of the master data for store 7001 would be
the phone number, address, and site number.

Merchandise Category Represents a product attribute relationship structure. Articles

Hierarchy can be grouped according to merchandise categories and
displayed as a merchandise category hierarchy.

For example, five levels of a merchandise category hierarchy at

The Home Depot would be the following: The Home Depot,
Building Supplies, Flooring, Carpet, Berber.

Article Hierarchy A grouping used to facilitate responsibilities within

merchandising and groups that work with merchandising. An
article hierarchy is also used as a reporting mechanism.

For example, at The Home Depot the article hierarchy is defined

as department, category, class, subclass and article.

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Site Hierarchy A site hierarchy is a way to group sites by level for reporting at
The Home Depot. By using site hierarchies, reporting can be
done on a specific location or nationwide, depending on the level
of the hierarchy.

For example, a report on the revenue and sales of the Vancouver

district can be run for all locations in this site hierarchy.

Demand Influencing Causal factor with significant impact on the demand of a

Factors (DIFs) location product.

For example, a blizzard may cause an increase in snow blowers

sold at the Mississauga store. A demand influencing factor
(DIF) is entered into the system in order to attempt to meet the
demand caused by the impact of the snowstorm.

THD Tools THD Tools is a software package solution for The Home Depot
provided by SAP, an industry leader in Enterprise Resource
Planning (ERP) software applications. This software integrates
all functional areas of The Home Depot into one transactional
system connecting the business as a whole to provide efficient
and effective communication through shared information.

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2.0 Supply Chain Planning at The Home Depot

Suggested Time: 10 Minutes

Achieving real growth has become more challenging and complex for retailers today. With
intense competition and market saturation within the industry, The Home Depot is striving to
meet the needs of informed consumers who want tailored solutions to meet specific needs.

The diagram below shows the current challenges faced by the retail industry today and The
Home Depot’s response to those challenges.

Current Complex Broader Sophisticated

Challenge Environment Competition Customers

Simplified Agile Localized

The Home Processes Response Approach
Depot
Response
SIMPLIFY

The Home Depot chose to respond to the current challenges by incorporating streamline
processes for a more localized approach to consumer markets. The combined processes of retail
supply chain merchandise planning and forecasting & replenishment help The Home Depot
ensure that merchandise is in the right place at the right time to meet customer needs.

Notes

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The diagram below shows the two possible flow paths of information and goods for The Home
Depot.

Flow of Information

Vendor Distribution Center Store

Vendor
Store

Flow of Goods

Next, this module provides a high-level explanation of the forecasting and replenishment
processes and how The Home Depot benefits from these processes.

Forecasting

Forecasting is the process of calculating the quantity of product required in the future. The
Home Depot generates a weekly forecast at a location product level to predict sales of the
products from The Home Depot stores and shipments from the distribution centers (DCs). For
example, every week a forecast is generated to predict how many garden hoses will sell at the
Mississauga, ON store. It is based on historical sales of the product and includes knowledge of
future events. The forecast is an input to the replenishment process.

F&R supports The Home Depot forecasting process by:

• Cleansing historical sales data to remove outliers and other sporadic data
• Distinguishing event-driven impact from basic demand
• Distinguishing seasonal impact from basic demand
• Calculating forecast based on historical sales, future events and seasonality
• Generating a weekly forecast for the large number of The Home Depot SKUs
• Serving as the central tool used to manage the forecasting data and parameters

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Replenishment

Replenishment is the process of determining how much stock to replace at the stores and
distribution centers (DCs) and when it is required. Replenishment cycles and distribution
methods are driven by the forecast and sales as well as agreements with The Home Depot’s
vendors. The Home Depot runs replenishment daily at a location product level to determine
quantities of products to order from vendors or distribution centers. The replenishment
calculation includes the forecast and safety stock and takes into account the shipping and order
processing lead times. The output of the replenishment calculation is order proposals, which are
converted to purchase orders (POs). Together, the Forecasting & Replenishment (F&R) tool and
processes are designed to ensure that products are available at the stores and DCs to meet
customer needs.

F&R supports The Home Depot replenishment process by:

• Generating a daily replenishment plan for the large number of The Home Depot SKUs
• Calculating a safety stock to account for fluctuations in demand and supply
• Generating order proposals taking into account the system generated forecast and order
lead times
• Serving as the central tool used to manage the replenishment data and parameters

Order Proposal and Exception Management

The outputs of the F&R Replenishment process are order proposals and exceptions. The F&R
Analysts can manage exceptions in order of priority. Calculations for this process are automated
and exceptions can be prioritized, thus allowing the F&R Analysts more time to focus on other
value added activities.

What is forecasting? Write the answer below.

What is replenishment? Write the answer below.

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2.1 The Home Depot and the F&R Organization

Suggested Time: 15 Minutes

Overview of The Home Depot Organization

To realize the full benefits of the newly designed integrated business processes, the F&R group
works collaboratively with several departments within The Home Depot, particularly
Merchandising and Store Operations (Ops). Below is an organizational chart of how each
functional area supports The Home Depot.

The Home
Depot
Canada

Store Merchandising Supply Production

Operations Chain Support

Customer
Order Data Central F&R RTS
Management Management Group
(COM)

Below is a brief description of each functional area across The Home Depot organization.

Store Operations (Ops)

Store Ops are responsible for special orders and Sell, Furnish & Install (SF&I), Furnish & Install
(F&I) and Install (I) orders, in addition to the replenishment of store managed inventory. Store
Ops is also responsible for all processes related to the store, including but not limited to:

• Store receiving
• Store-to-store processing
• Store-to-DC processing
• Return-to-vendor processing
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 • Store inventory movements (e.g. scrap markdowns)
• Labeling
• In-store pricing/promotions
• Out-for-repair

Customer Order Management (COM)

Customer Order Management (COM) works within The Home Depot stores to assist with special
orders including the following:

• Sales, furnish and installs (SF&I) orders

• Furnish and installs (F&I) orders
• Install (I) orders

Merchandising

Merchandising sets up and maintains all data related to articles, vendors, the assortment and
promotions in THD Tools. As a result, Merchandising is responsible for the data that supports
these activities. Merchants are responsible for determining:

• What articles The Home Depot sells

• How The Home Depot sources the articles
• Where the articles are sold at The Home Depot
• How the articles are priced at The Home Depot
• How the articles are promoted at The Home Depot

Data Management

Data Management is part of the Merchandising group. Data Management creates and maintains
all data to support Merchandising activities in the THD Tools system. In addition, data
management maintains the supply chain master data information held in both THD Tools and
F&R and manages exceptions related to master data.

Ready to Serve (RTS)

RTS is responsible for running and monitoring each of the interfaces that transfer data between
THD Tools and F&R. The RTS group is also responsible for resolving errors that result from
data transfers in partnership with the Central F&R group and BASIS group, which is the group in
charge of the technical architecture.

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The RTS group also supports the Forecasting & Replenishment Processor (FRP) run. In
instances where an error or failure occurs, the RTS group supports the resolution and re-
execution of the FRP run.

Central F&R

Central F&R is responsible for managing the inputs and parameters of F&R as well as the overall
inventory performance for the Canadian division. Inventory Analysts (IAs) are also responsible
for supporting Store Associates in the effort to manage inventory levels at the stores.

The Central F&R group works collaboratively with Merchandising, Data Management, Store
Ops and Ready to Serve (RTS). The Central F&R group’s most critical business relationship is
with the Merchandising group. The two groups work together to determine the supply chain
information for:

• New location products

• New vendors
• New store openings
• Sourcing changes
• Allocations

Notes:

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Below is an organizational chart for the Central F&R group and responsibilities for managers and
analysts within the group.

THE HOME DEPOT CANADA

Inventory Management

Director, Administrative
Inventory Management Assistant
Alper Ozdemir Andrea Torcia

Manager, Inventory Manager, Inventory Manager, Inventory

Management Management Management
Charles D’Souza

Inventory Analyst, Inventory Analyst, Inventory Analyst, Inventory Analyst, Inventory Analyst,
Inventory Analyst

Inventory Analyst, Inventory Analyst, Inventory Analyst,

Inventory Analyst Inventory Analyst Inventory Analyst

Inventory Analyst Inventory Analyst, Inventory Analyst, Inventory Analyst, Inventory Analyst
Inventory Analyst

Inventory Analyst, Inventory Analyst,

Inventory Analyst Inventory Analyst Inventory Analysts Inventory Analyst

Central F&R Managers

The Central F&R Managers are responsible for maintaining high service levels in the stores and
DCs while maximizing revenues and gross margin dollars and reducing inventory investment.
Managers are responsible for ensuring that the F&R system and business processes are leveraged
appropriately and monitor both F&R usage and inventory levels through various key
performance indicators (KPIs).

The responsibilities of the Central F&R Managers include:

• Identifying current and future business process improvement opportunities

• Managing F&R improvement projects
• Providing management leadership and development/coaching guidance to the Central
F&R group

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Central F&R Inventory Analysts

The Central F&R Inventory Analysts are responsible for the tactical execution of the inventory
planning, forecasting and replenishment activities. The Analysts ensure inventory levels are on
target for Stores and DC’s.

The responsibilities of the Central Inventory Analyst include:

• Maintaining the Forecasting & Replenishment system for all products within assigned
departments
• Maintaining demand influencing factors (DIFs), such as promotions within F&R
• Managing inventory levels at the Stores and DCs
• Working closely with Merchants to support the article lifecycle management process
• Providing key reporting to Central F&R Management, Merchandising and Logistics
• Identifying process improvement opportunities and recommending solutions

Notes

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2.2 The Home Depot Hierarchies

Suggested Time: 15 Minutes

The Home Depot organizes articles in the THD Tools system through three types of hierarchies:
article hierarchies, merchandise category hierarchies and site hierarchies. Below are brief
descriptions of each of these hierarchies.

Site Hierarchy

Site hierarchy is a way to group sites by level for reporting at The Home Depot. By using site
hierarchies, reporting can be done on a specific location or nationwide, depending on the level of
the hierarchy.

The site hierarchy, also known as class hierarchy in THD Tools, is the grouping of sites and
issued for reporting purposes. Financial Reporting Systems in Atlanta use a new Business
Intelligence (BI) system to report revenue and sales for each division, region, district or The
Home Depot as a whole.

The graphic below illustrates an example of each level of the site hierarchy.

Site Hierarchy Illustration

Company
Every site in Canada

Division Division
East Coast West Coast

Region Region
Toronto Vancouver

District District
Toronto West North Vancouver

Store Store DC
7001 7002 Toronto
West

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Article Hierarchy

Article hierarchy is the product structure used by Merchandising and the Stores to organize
products for the customer. Articles are grouped together based on common functionality,
interdependence and other customer-demand oriented grouping needs.

The structure of an article hierarchy consists of four hierarchy nodes. Hierarchy nodes are the
different levels in an article hierarchy. The four levels (from highest to lowest) of the hierarchy
are:
i) Department
ii) Category
iii) Class
iv) Subclass

Below is an example showing each of the five levels of the article hierarchy:

Article Hierarchy Structure Illustration

Article Hierarchy Structure Example

The
TheHome
HomeDepot
Depot The Home Depot

Department
Department Building Supplies

Category
Category Paint Supplies

Sanding Supplies &

Class
Class Steel Wool

Subclass
Subclass Drywall Sheets

The article hierarchy provides several benefits related to usability:

• Maintains integrity of existing legacy structure

• Simplifies the ability to coordinate and move an entire class or subclass to another
location in the hierarchy
• Removes the necessity to maintain out dated subclasses (e.g., subclasses labeled “Do Not
Use” in the current structure)

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In addition, this structure provides benefits from an enterprise perspective:

• Provides an additional level in the hierarchy to support additional functionality in the

future (e.g., assortment planning)
• Supports assignment of attributes defined by portfolio management project
• Improves the ability to integrate future acquisitions

Merchandising Category Hierarchy

The merchandise category hierarchy is a product structure that classifies physically similar
products and services into common groupings, also known as article-type classification. It
classifies each product and service at The Home Depot into groupings with common
characteristics. Merchandise categories uniquely identify like products by 4-6 physical product
characteristics. In addition, merchandise categories also isolate products that require specific tax
treatment. The Home Depot uses the merchandise category hierarchy primarily for merchandise
planning and reporting purposes.

The merchandise category hierarchy structure consists of five levels. Each level is assigned to
categories, which are groupings of similar products and services. The products and services
can be physically similar or similar by industry standards. Merchandise categories form the
lowest level of the merchandise category hierarchy. The table below lists the five levels with a
practical example for each:

Merchandise Category Hierarchy Illustration

Merchandise Category
Hierarchy Structure Example
The
TheHome
HomeDepot
Depot The Home Depot
(Level
(Level5)
5)

Family
Family Building Supplies
(Level
(Level4)
4)

Segment
Segment Flooring Attributes
(Level
(Level3)
3) (To be determined by Merchant)

% Yarn
Sub-Segment
Sub-Segment Carpet
(Level
(Level2)
2)
Pile
Merchandise
MerchandiseCategory
Category
(Level Berber
(Level1)
1) Color family

Foot Traffic

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The benefits of using a merchandise category hierarchy are as follows:

• Enables a view of the business based on physical attributes

• Supports the goal of unique products as unique articles
• Provides a view aligned with industry standards
• Supports sourcing analysis across departments (e.g., could a gas powered pressure washer
be sourced from the same factory as gas powered leaf blower?)
• Supports pricing analysis based on commodity price fluctuations (e.g., should a price
change be initiated for all copper products based on a spike in copper prices?)
• Supports analysis of market trends in style and finish (e.g., should the lighting department
increase brushed nickel fixture inventory based on positive sales trend in brushed nickel
faucets?)

The graphic below illustrates the differences between the article hierarchy and the merchandise
category hierarchy.

Article Hierarchy vs. Merchandise Hierarchy Illustration

Canadian SKUs
ƒ 119-684 5 Gal Water
ƒ 137-034 Sunbeam Water Cooler

Article Hierarchy Classification MC Hierarchy Classification

SKU 119684 : 5 Gallon Water Only SKU 119684 : 5 Gallon Water Only

• Department : Plumbing (0026) • L4: Food / Beverages / Tobacco

• Category: Water Treatment (0240) • L3: Beverages

• Class: Water Treatments (02142) • L2: Non-Alcoholic Beverages - Ready to

Drink
• Subclass: Water Dispensers (10979)
• L1: Packaged Water

SKU 137034 : Sunbeam Steel Water Dispenser SKU 137034 : Sunbeam Steel Water Dispenser
• Department : Plumbing (0026) • L4: Home Appliances
• Category: Water Treatment (0240) • L3: Major Domestic Appliances
• Class: Water Treatments (02142) • L2: Major Water Dispensers
• Subclass: Water Dispensers (10979) • L1: Water Dispensers -
Freestanding

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These hierarchies, particularly the article and site hierarchies, are fundamental to understanding
how The Home Depot aligns its business in the Merchandising and Store Operations functions.

Notes:

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3.0 F&R Process and System Functionality Overview

Suggested Time: 20 Minutes

This module provides a high-level overview of the business process and system steps involved in
the automatic generation of an order proposal using F&R. Each of these components are
reviewed in more detail in subsequent training courses.

The image below shows the F&R End-to-End Process Overview:

Continuous
Improvements

Calculate Calculate Manage Release

Import
Forecast Replenishment Exceptions Order
Data
Proposals

This module reviews each of the steps in the high-level process, beginning with Import Data.

Import Data

In order to create a forecast for each location product, the system requires three inputs: master
data, transactional data, and profiles and parameters. A majority of the data is maintained in
THD Tools and then imported into F&R during the nightly batch run.

Notes:

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Below is a pictorial overview of the master data elements transferred from THD Tools to F&R in
the nightly batch run. Remember, location product and article site have the same meaning in
THD Tools and in F&R respectively.

THD Tools to F&R Master Data Elements Illustration

THD Tools F&R

Article Product
Article Hierarchy Product Hierarchy
Store, DC and Vendor Location
Reference Site Assignment Location Group
Logistics Data of Article
Master Data

Location Product
Source of Supply, Procurement Data,
Purchase Info-record Transportation Lanes
Procurement Cycles Procurement Cycles
Standard
Rounding Profiles Interface
Rounding Profiles
Units of Measure Groups
Units of Measure Groups
Minimum Orders Values
Release Profile
Layout Modules
Layout Modules
Promotions
DIF
POS Pipe

Stock Information
Stock
Consumption Data
Consumption
Order

Purchase Orders Order Proposals

Notes:

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Below is the Mass Maintenance for Location Products screen in the F&R system. This screen
includes a detailed listing of the master data elements held in F&R such as article number,
location number, source of supply listing status and the required profiles and parameters.

Mass Maintenance for Location Products (N/FRE/MASS_MATLOC)

Calculate Forecast

The Home Depot uses F&R to replenish stock automatically and manually at the stores and DCs.
The F&R forecasting functionality predicts what quantity of a product sells at what time and in
which locations. The Home Depot forecast is based on historical store sales and promotions or
demand influencing factors (DIFs), which are events that are planned to occur in the future and
are predicted to have an additional impact on the sales of the product. F&R uses the DIF
functionality to identify, define and quantify the impact these events (i.e. sales promotions,
public holidays, weather) have on the consumption history and the forecast.

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Key characteristics of the Forecasting run:

• A forecast is calculated for each “stocked” location product.

• The forecast is generated on a weekly basis, on Monday night, as part of the FRP run.
• The forecast is calculated for stores and DCs.

The output or end result of the forecast calculation is the mean forecast. The consumption
history is cleansed, a base forecast is generated and the DIF effects are applied to generate the
mean forecast. The mean forecast, the output of the forecasting process, is the input to the
replenishment calculation.

Below is an illustration of the inputs for the forecast calculation.

Forecast Run Illustration

Data Import Smoothing outliers and analyzing zero consumption

+
Forecast
Calculation Forecast methods based on selling class, i.e. average
weekly sales
+
Apply DIFs Apply the numerical impact of the DIF

Mean Forecast The Mean Forecast is one of the inputs to the

Requirements Calculation

Notes

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Below is the forecast calculation shown in the Cause Determination Workbench:

Cause Determination Workbench (/FRE/CADE)

Calculate Replenishment

F&R provides automated replenishment capabilities. F&R uses a statistical forecast or a manual
target stock and reorder point as the basis for requirements calculation and order quantity
optimization. This process takes place nightly during the FRP run according to a pre-defined
schedule.

The requirements calculation takes into account safety stock and scheduling among other factors.
The outputs of the requirements calculation, net requirements, are the input to the requirements
optimization calculation.

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Key characteristics of the replenishment run:

• Replenishment is calculated for each “stocked” location product.

• Replenishment is generated on a nightly basis as part of the FRP run.
• The forecast is calculated for stores and distribution centers (DCs).

Requirements Calculation Illustration

Requirements + Mean Forecast (output of Forecast Calculation)

Calculation + Demand Influencing Factors
+ Safety Stock
--
On Hand
--
Open Orders
±
Scheduling

Net
NetRequirements
Requirements

Below is a second screen from the cause determination workbench.

Cause Determination Workbench (FRE/CADE)

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Requirements Optimization

Following the calculation of the net requirements, the Replenishment Quantity Optimization
process takes place. This process optimizes the automatically generated net requirements at the
product/store and product/DC levels according to defined or given restrictions/conditions.

Some examples of net requirements include logistical rounding profiles and vendor minimums.
The net result is order proposals containing a combination of products with a calculated quantity
to be ordered from a specific vendor/DC on a specific date or exceptions.

Requirements Optimization Illustration

Requirements ± Logistical rounding profiles

Optimization ± Economic order quantity
± Vendor restrictions

Order Proposals

Below is a screen from the Restriction Profile. The screen displays the vendor restriction that
must be met for requirements optimization:

Restriction Profile (/FRE/PRORES)

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The output of the requirements, order proposals, are then released to THD Tools and converted
into purchase orders, which are sent to vendors for The Home Depot.

Manage Exceptions & Release Order Proposals

The primary outputs of the FRP run are order proposals and exceptions. Order proposals contain
system-generated order quantities created to meet business-defined service levels in stores and
distribution centers (DCs). Much like purchase requisitions, order proposals are a preliminary
step to a purchase order (PO) and allow the F&R Analyst time for review before an official PO is
generated.

The exceptions inform Associates of both business and technical issues. The exceptions
generated are related to order proposals, the inputs to the FRP run such as master data and
consumption history or steps within the run itself. Central F&R, Store Ops, Central Data
Management and RTS (Ready to Serve), monitor the exceptions. These exceptions point the
Associates to higher priority issues. Below is a pictorial view of how these groups work together
with the system in order to monitor and resolve exceptions.

Exception Monitoring Illustration

Store OPs
Order Proposals Order Proposals
F&R Exceptions THD Tools
F&R
Central
F&R RTS
Group

Data
Management
6:00 pm

All of these groups are responsible for reviewing the exceptions on a day-to-day basis. Order
proposals and exceptions are reviewed and resolved through the Replenishment Workbench.

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Below is a view of the Replenishment Workbench:

Replenishment Workbench (/FRE/RWB)

Once the exceptions have been resolved, the Inventory Analysts and Store Inventory Associates
mark the order proposals for release. At 6:00 pm, order proposals with no remaining high
priority exceptions are released to THD Tools, converted to purchase orders and transmitted to
vendors.

Notes

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3.1 Knowledge Check

Suggested Time: 5 Minutes

Activity: Complete the knowledge check questions to review the material covered to this
point in the course. The answers are in the Solutions Key at the end of this
course.

Multiple Choice

1. What are the main inputs to the F&R process?

a) Master data, transactional data and profiles/parameters
b) Exceptions, master data and transactional data
c) Release jobs, transactional data and master data
d) Transactional data, master data and exceptions

2. What are the main outputs to the F&R process?

a) Mean forecast, net requirements, and order proposals
b) Exceptions automatically generated in the nightly FRP run
c) New stores or sites opening across The Home Depot Canada
d) None of the above

3. Which teams are involved?

a) Central F&R group
b) Central Data Management
c) RTS
d) All of the above

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4.0 Day/ Week in the Life of an F&R Inventory Analyst

Suggested Time: 10 Minutes

An F&R Analyst has routine tasks that must be carried out on a daily basis. This module
introduces these tasks and explains them in further detail. The three main tasks are presented
below.

Daily task checklist for the F&R Inventory Analyst:

□ Review and release order proposals

□ Monitor alerts and resolve exceptions
□ Monitor key performance indicators (KPIs)

F&R Analysts are responsible for managing order proposal and non-order proposal related
exceptions for centrally replenished products. Centrally replenished products are any location
products replenished via F&R by F&R Analysts.

Some location products are replenished directly in the store. Central F&R is responsible for
resolving some exceptions for store-replenished products, such as out of tolerance exceptions
related to the forecast.

□ Review and Release Order Proposals

Using the Replenishment Workbench, the F&R Analyst resolves all exceptions related to order
proposals. When viewing exceptions in the workbench, an F&R Analyst may see order
proposals with red, yellow or green indicators. Red order proposals have the highest priority and
are reviewed first, followed by yellow order proposals. Green order proposals do not require
review because these order proposals have passed all checks in the nightly batch run. Once the
Analyst releases all order proposals, the Analyst proceeds to the Exception Workbench, where
the Analyst views the Alerts Monitor.

Notes

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□ Monitor Alerts and Resolve Exceptions

Next, the Inventory Analyst monitors alerts and resolves exceptions in order of importance. The
exception alerts/exception priorities and the order of importance are as follows:

Button Priority Description

High The system displays the high priority symbol next to the
alert description for the exception.
Medium The system displays the medium priority symbol next to
the alert description for the exception.
Low The system displays the low priority symbol next to the
alert description for the exception.

□ Monitor Key Performance Indicators (KPIs)

The Inventory Analysts also work with the F&R Managers to monitor inventory levels and other
important key performance indicators (KPIs) using Business Intelligence (BI) reports.

What day-to-day activities completed by the F&R Analysts

impact the FRP run? Write the answer below.

Notes:

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5.0 Overview of the Technical Exception Monitor Process

Suggested Time: 10 Minutes

The Ready to Serve group has four main responsibilities at The Home Depot:

1. Monitor daily batch/interface jobs for F&R

2. Proactively resolve technical issues with batch/interface jobs
3. Manage other technical exceptions using the Exception Workbench
4. Provide technical and functional support to Associates

This module discusses the import and export batch transactions that the RTS group monitors and
the purpose of each transaction.

The diagram below shows the standard interfaces between THD Tools and F&R:

Relationship between F&R and THD Tools

F&R and THD Tools communicate various pieces of information to each other to enable the
F&R process. THD Tools sends master data, open purchase orders and inventory levels to F&R
to support forecast and order proposal generation. The Ready to Serve (RTS) group monitors the
exchange of information from THD Tools to and from F&R. F&R imports data from and
exports order proposals to THD Tools.

Details of the data transfer processes are available in the configuration documentation. The
configuration documentation is functional/technical documentation maintained by the business.

RTS monitors eleven import and export transactions. The diagram below shows some of the
basic import and export transactions that occur between THD Tools and F&R and the related
transaction codes. Buffer tables, known as BIF tables, allow any problems with the data to be
corrected before it is passed to F&R.

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The table below provides a description of each of transaction in the diagram above.

THD Tools Transaction Description

Initial Transfer of Master Data - Transfer of Sites,
FRE01 Vendors, Articles and Purchasing Info Records
FRE02 Delta Transfer of Data
FRE03 Transfer of Time Series Data
FRE04 Transfer of Open Orders
FRE05 Transfer of Sales Price
Transfer of Reference Site Assignment (Mass
FRE10 Maintenance)
FRE11 Initial Transfer of DIF Occurrences
FRE12 Delta Transfer of DIF Occurrences
FRE24 Prepare Transfer of Data for Logistical Rounding
/FRE/OPM_MASSREL Mass Release of Order Proposals

The following are examples of information updates sent from THD Tools to F&R:

• Updates on delivery dates

• Updates on quantities
• Insertion/deletion of line items
• Insertion/deletion of purchase orders
• Updates of delivery status (completed or partially shipped)
• Updates on delivered quantities
• Updates on demand influencing factors (DIFs)
• Updates on master data characteristics (sites, vendors, articles, purchase info
records)

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5.1 Monitor Export Process from THD Tools

Suggested Time: 25 Minutes

RTS uses the monitor export procedure to check the status (success or failure) of any given data
transmission from THD Tools to F&R. The F&R system checks the data transmission after an
export of information to ensure that the data has been sent properly from THD Tools to F&R.
Error messages are generated if there are problems that arise within the transfer.

An RTS Associate uses transaction code FRE_UI to display or delete messages and exceptions
and to display interface files. The RTS Associate works on resolving data transmission problems
that appear under the FRE_UI transaction. Below are the first three transactions in more detail:

Relationship between F&R and THD Tools

FRE01
FRE02

FRE03

FRE04

FRE05 BIF Tables /N/FRE/BIF

THD Tools F&R
FRE10

FRE11

FRE12

FRE24

/FRE/OPM_MASSREL

Notes:

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Initial Transfer of Data

With the introduction of THD Tools to The Home Depot, an initial transfer of data takes place to
load relevant master data and transactional data from THD Tools into F&R. The initial data load
covers also the process of loading a complete 110-week consumption history from the Business
Warehouse (BW) to F&R. The initial transfer is a one-time data load for most data, which takes
place before the introduction of the F&R system. The initial load is run for each new site, as part
of the new site set-up, and for new vendors, as part of the new vendor set-up.

Below is the Initial Transfer of Data to THD Tools screen:

Initial Transfer of Data (FRE01)

Initial data consist of the following types of data:

• Sites • Promotional demand influencing factors (DIFs)

• Products • Site references
• Supply network data • Unit of measure groups
• Vendor data • Rounding profiles
• Merchandise categories • Open orders

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FRE01 is used to transfer all initial data from THD Tools to F&R for active sites, vendors,
products and supply networks, and then posts the data in F&R using transaction code
/FRE/FRE_BIF. The F&R system uses temporary import tables to store the data before it is
posted to standard tables. The temporary tables are generally labeled as “BIF Tables”. The
Home Depot uses delta transfers to send updates on an ongoing basis.

Delta Transfer of Data

Delta loads consist of daily updates to master data objects and transactional data objects. These
updates are transferred from THD Tools to F&R through delta transfers.

Master data updates include changes to the following objects:

• Product • Reference module

• Location • Hierarchies
• Location product • Unit of measure groups
• Supply network • Rounding profile data objects

Transactional data objects include:

• Consumption
• DIFs
• Stock
• Order proposals in data

The delta load takes place on a daily basis and must finish prior to the beginning of the FRP run.
Before the start of the FRP run, the system automatically checks for updates on stock and
consumption by location.

Daily consumption updates are sent from THD Tools to F&R to ensure F&R has the most recent
daily bucket(s) of consumption data. Typically, the number of buckets of data in the transfer lies
between one and five (days). The RTS group monitors the transfer of these updates between
THD Tools and F&R. If the upload of consumption data fails, the system generates error
messages and an RTS Associate must use the Exceptions Workbench to view and resolve the
errors.

Delta loads also consist of daily updates of order proposal changes, and DIF’s from THD Tools
to F&R. The transfer of DIFs is discussed later in this module.

A daily batch job is scheduled to run transaction code FRE02 to initiate a delta transfer from
THD Tools to interface tables. A second batch job posts the data in F&R using
transaction code /FRE/BIF, which is the same transaction used in the initial load.

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Below is the Transfer changed data to F&R Screen:

Delta Transfer of Data (FRE02)

What is the difference between an initial transfer and a delta

transfer? Write the answer below

What is the purpose of an order proposal? Write the answer

below.

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Transfer of Time Series Data

Different inventory movement types may be identified as relevant for F&R use. This
information is used as consumption history to generate the forecast. In addition, on hand
position is transferred to be used in the requirements calculation during the FRP run, used to
create order proposal quantities. FRE03 is scheduled to pull this data into F&R on a nightly
basis. Perform this procedure whenever consumption data or stock information needs to transfer
from THD Tools to F&R.

Below is the Transfer consumption data and stock information to F&R screen:

Transfer of Time Series Data (FRE03)

Below are the second three transactions in more detail:

Relationship between THD Tools and F&R

FRE01
FRE02

FRE03

FRE04

FRE05 BIF Tables /N/FRE/BIF

THD Tools F&R
FRE10

FRE11

FRE12

FRE24

/FRE/OPM_MASSREL

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Transfer Open Purchase Orders

A batch job is scheduled to run transaction code FRE04 to transfer purchase order updates from
THD Tools to interface tables. A second batch job posts the data in F&R using transaction code
/FRE/BIF.

This transaction selects both open purchase orders and completed purchase orders for transfer
into F&R. F&R uses current purchase order information during the replenishment calculation to
generate appropriate order proposal quantities.

Below is the transfer open purchase orders screen:

Transfer Open Purchase Orders (FRE04)

Open purchase orders allow F&R to know what goods are still to come and to ensure the system
does not duplicate stock orders resulting in overstock. In this process, information for both
standard purchase orders and stock transfer orders (STOs) transfer to F&R. Only the purchase
order document types that have been configured to be relevant for transfer to F&R are actually
transferred.

For an order proposal to transfer to F&R, the Associate checks the F&R active flag. From the
moment the flag is checked, the system creates change pointers for new and changed purchase
orders. In order to limit the creation of a high number of unnecessary change pointers, an
Associate must mark this flag just prior to the first transmission of any open orders to F&R.

Transfer of Sales Price

A batch job is scheduled to run transaction code FRE05 to transfer price changes from THD
Tools to interface tables, and a second batch job then posts the data in F&R using transaction
code /FRE/BIF. This procedure is performed when a sales price has changed in THD Tools and

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the necessary information transfers to F&R. This information is used to influence the forecast.
Based on the past relationship between price and sales, the forecast attempts to predict the future
impact of price changes on sales.

Below is the Transfer of sales price changes screen:

Transfer of sales price changes (FRE05)

Delta DIF Occurrence Transmission

The system captures promotions in THD Tools requiring a batch job to transfer these DIF
occurrences from THD Tools to F&R using transaction code FRE12. Perform this procedure
when there are changes to promotions in THD Tools, and it is necessary to move those changes
into F&R. This is currently scheduled to occur nightly.

DIFs can transfer to F&R from THD Tools through a standard interface, if the promotion types
(compulsory) and themes (optional) are correctly mapped in THD Tools with a DIF ID.

Below is the Delta Transmission of DIF Occurrences screen:

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Delta Transmission of DIF Occurrences (FRE12)

Export of Order Proposals to THD Tools

The forecast and replenishment process results in the creation of order proposals. A batch job
runs the /FRE/OPM_MASSREL program at 7am, 9:45 am and 6pm daily to export these order

proposals from F&R into THD Tools. Order proposals are transferred to THD Tools, based on
what The Home Depot sets as release criteria. Currently the design is to release all order
proposals with a green or yellow flag. These orders are released only once per day at 6pm,
unless there are lumber distribution center (LDC) orders (7am and 9:45 am transfers are for these
orders) or ad-hoc requests. Order proposals with high priority status (red) are deleted daily if
still red at 6pm.

For ad-hoc requests when using this transaction, an Associate defines which order proposals to
transfer by entering data into the Order Proposal Number field. If there is only one order to
export, the Associate only needs to fill in the first field. The Associate also has the possibility to
enter a range of orders for export.

The RTS Associate reviews exceptions generated by the mass release of order proposals from
F&R to THD Tools by accessing the transaction /N/FRE/CON in F&R and FRE_UI in THD
Tools.

Below is the mass release of order proposals screen:

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Mass Release of Order Proposals (n/FRE/OPM_MASSREL)

Monitor Import Processes in F&R

RTS performs this procedure when interface processing has been executed for any inbound or
outbound interfaces to or from F&R. When data is imported in F&R, an RTS Associate can only
use transaction code /FRE/CON to view import processing errors when the transfer from
interface tables (BIF tables) to F&R has occurred. Within F&R, an Associate can see an overall
count of errors per interface type using this transaction.

Below is the Monitor Import Processes in F&R screen:

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Monitor Import Processes in F&R (/FRE/CON)

Notes

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Transaction Codes to Remember
Transaction Code Name
FRE01 Initial Transfer of Data
FRE02 Delta Transfer of Data
FRE03 Transfer of Time Series Data
FRE04 Transfer Open Purchase Orders
FRE05 Delta Transfer of Sales Price
FRE10 Transfer of Reference Site Assignment (Mass Maintenance)
FRE11 Initial Transfer of DIF Occurrences
FRE12 Delta Transmission of DIF Occurrences
FRE_UI Monitor Export Process
/FRE/BIF Interface Processing
/FRE/DIFWB Demand Influencing Factor Workbench
/FRE/CON Monitor Import Process in F&R
/FRE/DIFDI Display DIF Occurrence
MIGO Transfer Posting

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5.2 Knowledge Check

Suggested Time: 5 Minutes

Activity: Match the transaction code with the description by placing the corresponding
letter of description, in the Answer box beside the transaction code.

Answer Transaction Code Description

FRE03 A. Transfer of Open Orders

FRE01 B. Delta Transfer of Data

FRE12 C. Delta Transfer of DIF Occurrences

FRE04 D. Transfer of Time Series Data

FRE02 E. Initial Transfer of Data

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6.0 Exception Management Overview

Suggested Time: 5 Minutes

In addition to monitoring the F&R batch jobs discussed in the Monitor Export process from THD
Tools, RTS may have additional exceptions to manage using the Exceptions Workbench. This
module provides an overview of the process and workbench used to monitor and resolve these
exceptions. Below is the high-level view of the Exception Management process for order
proposals moving from F&R to THD Tools:

The output of the nightly FRP run includes order proposals and exceptions. Each day Central
F&R, Central Data Management, RTS and Store OPs work the exceptions to release order
proposals and replenish location products. These order proposals and exceptions are available
for review until 6:00 pm the following evening. At 6:00 pm, the green and yellow order
proposals, the order proposals with no remaining high priority exceptions, are released to THD
Tools and converted to Purchase Orders (POs), which are then transmitted to the vendors. All
order proposals that are still red are deleted. It is imperative that the red exceptions are
prioritized in the exception resolution process.

A master data exception indicates to Central F&R, Data Management and RTS that an entry
involving F&R-relevant master data for a location product is missing or invalid, hence
preventing a portion of the FRP run from successfully completing for that location product. Data
Management and RTS are responsible for monitoring the master data exceptions on a daily and
weekly basis.

The exceptions the RTS group is responsible for managing, along with the possible resolutions,
are listed in the RTS Exception Management Job Aid.

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 How often are Order Proposals released to THD Tools from
F&R? Write the answer below.

Notes:

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6.1 Master Data Exception Management Process

Suggested Time: 25 Minutes

This section walks through the Master Data Exception Management process. First, the Associate
accesses the Exception Workbench and sets up an Exception Profile.

Profiles

Exceptions are available for review in the Exception Workbench with profiles. A profile can be
set up according to criteria such as business area, priority and message type. To access profiles
in the Exceptions Workbench, the Associate selects the Overall Profile button in the Exception
Workbench. Below is a screen of the Overall Profile screen:

Exception Workbench - Overall Profile (/FRE/EXC)

A profile can be set up according to criteria like business area, priority and message type.

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The following table gives a brief description of each of these criteria.

Criteria Description
Business Area An exception can belong to one of several business areas:

- System Administration
- Customizing
- Master data
- Demand Influencing Factors
- Inventory Management
- Consumption
- Forecast
- Replenishment
- Order Quantity Optimization
- Order Proposal Management
- Order Proposal Release Management

The Inventory Analysts are responsible for reviewing exceptions relevant to

the following business areas: demand influencing factors, inventory
management, consumption, forecast, replenishment and order quantity
optimization.

Other organizations, such as Data Management and RTS are responsible for
reviewing the balance of exceptions generated in the FRP run.

Priority The priority describes the importance of an exception. Priorities help the
Associate distinguish important exceptions from less important exceptions.
There are three priority levels:

High Priority
Medium Priority
Low Priority

The priority can be changed in customizing.

The F&R group selects only exceptions of High or Medium priority for
review.

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Criteria Description
Message type There are 3 relevant F&R exception types:

Error
Warning
Information

The exception type is defined on the level of the object type and delivered
by the system.

The Inventory Analysts reviews exceptions with all message types.

All exceptions generated by the FRP run are accessible in the Exception Workbench. Each
Associate has individual profiles to access the data needed to resolve exceptions specific to the
functional groups. RTS uses profiles, which segregate exceptions by type and priority.

All exceptions generated by the FRP run are accessible in the Exception Workbench. Each RTS
Associate has an individual profile to access and manage data the RTS group is responsible for
resolving. There are two profile and category types used most often:

• 1st profile: Displays exceptions for 1st category (e.g., Lumber)

• 2nd profile: Displays exceptions for 2nd category (e.g., D30 - Millwork)

Exceptions can be sorted and grouped by the various fields listed at the top of the screen. In the
Exception Workbench - Overall Profile (/FRE/EXC) screen above, the alerts are sorted by
priority type. In the example from the screen above, the Associate can see that there are a large
number of exceptions and can distinguish the important (high priority) exceptions from less
important (low priority) exceptions. High priority exceptions should be reviewed first, medium
priority exceptions second and low priority exceptions do not require review.

Each exception contains the following information:

Object Description
Description The description is a brief summary of the exception.
Priority The priority describes the importance of an exception. There are three
priority levels: high, medium and low.
Type There are three relevant F&R exception types: Error, Warning and
Information.
Creation Time This time stamp indicates the date and time that an exception was
Stamp created. The creation time stamp is assigned to all exceptions.
User The Associate who initiated the application that generated the
exception is an additional attribute of an exception. This attribute is
assigned to all exceptions.
Program Context The program context indicates the transaction code and name of the

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Object Description
program that was running, when the exception was generated. This
attribute is assigned to all exceptions.
Operating Mode Describes the operating mode of the running program that generated
the exception. This attribute is assigned to all exceptions.
Validity Period The validity period (in days), based on the creation time stamp,
indicates the date after which an exception is no longer valid.
Status The status represents whether an F&R exception has been processed.
This attribute is assigned to all exceptions.
Order Proposal This flag characterizes an exception as relevant for Order Proposal
Release Relevance Release Management. The existence of an exception with this
Flag characteristic related to a location product, location or a product
prohibits the automatic release of the order proposal.
Low –level exception Exceptions that explain an issue in more detail.

For further information on profile setup, refer to the business process procedure (BPP) titled
Exception Management in the supporting documentation to this course.

Once profiles have been created and the Associate has selected the desired profile, the Associate
can begin working exceptions.

Below is the Exception Management process:

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

Access Review Resolve Mark Review Resolve Mark
Exception High High Exception Medium Medium Exception
Workbench Priority Priority as Priority Priority as
Exceptions Exceptions Resolved Exceptions Exceptions Resolved

Each step in the process is reviewed below.

Step 1: Access the Exception Workbench

The Associate accesses the Exception Workbench. After the Overall Profile has been selected
and saved in the Exceptions Workbench, the Associate selects Redetermine Alerts on the Alert
Monitor Initial screen. The Associate clicks this button to show the current alerts within the
Exception Workbench. The Exceptions shown are based on the Associate’s overall profile, as
discussed earlier in this section.

After selecting Redetermine Alerts, the Display Alerts screen for the specified Associate’s
profile appears. The Associate places a check in the Selection Box to view the alerts.

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Below is the Display Alerts screen in the Exception Workbench:

Exception Workbench – Display Alerts (n/FRE/EXC)

The Associate places a

check in the Selection Box
to view all of the alerts
within overall profile.

Alerts found in the system during the nightly Forecasting & Replenishment (FRP) run are
available for review and resolution the following day.

Notes:

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Below is an example of a group of alerts in the Exceptions Workbench. Each exception has a
description, status and priority indicators.

Exception Workbench - Display Alerts (n/FRE/EXC)

Step 2: Review High Priority Exceptions

High Priority exceptions are marked with the high priority indicator . The Associate may
filter the view in the Exceptions Workbench to view only high priority exceptions. Once the
Associate accesses the Exception Workbench using the appropriate profile, the next step is to
sort the exceptions by priority, reviewing high priority exceptions first. The Associate is not
responsible for resolving all of the exceptions listed under the “high priority exceptions” profile.

Notes:

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Below is a screen from the Exceptions Workbench. In this screen, the Associate has filtered all
of the High Priority exceptions.

Exception Workbench (n/FRE/EXC)

High Priority
Exception indicator in
the Exceptions
Workbench

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

Access Review Resolve Mark Review Resolve Mark
Exception High High Exception Medium Medium Exception
Workbench Priority Priority as Priority Priority as
Exceptions Exceptions Resolved Exceptions Exceptions Resolved

Step 3: Resolve High Priority Exceptions

RTS Associates work through each exception, reviewing the description and details, then
updating data in THD Tools and F&R where required. In some cases, RTS collaborates with
other groups such as F&R to determine the appropriate actions. The exception description
provides the Associate with a detailed review of the exception that has occurred in the system.
For specific actions of an RTS Associate to resolve master data exceptions, please see the RTS
Exceptions Job Aid.

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Below is a screen of the detailed description of an exception in the Display Alerts screen.

Exception Workbench – Display Alerts (/FRE/EXC)

The Associate can select an

individual exception from
the exception alerts list and
view more detailed
information on the
exception.

Notes

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 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
Access Review Resolve Mark Review Resolve Mark
Exception High High Exception Medium Medium Exception
Workbench Priority Priority as Priority Priority as
Exceptions Exceptions Resolved Exceptions Exceptions Resolved

Step 4: Mark High Priority Exceptions as Resolved

After the RTS Associates work exceptions individually or with other functional areas, the
exception can be marked as resolved. To mark the exception as resolved, the Associate selects
the exception and clicks the flag icon to change the status.

Below is the Exception Workbench – Display Alerts screen with the status for an exception
marked as complete:

Exception Workbench – Display Alerts (n/FRE/EXC)

After an exception has been resolved, it can be released for the next F&R system processing
cycle. To delete an exception once it has been resolved:
1. Click anywhere on the row to select the exception.

2. Click . By marking the green check to the exception, the Analyst can keep track
of which exceptions they have resolved.

Step 5: Review Medium Priority Exceptions

After resolving high priority exceptions, the Associate works the medium priority exceptions.
Similarly to high priority exceptions, one Associate or functional area is not be responsible for
resolving all exceptions listed under the medium priority exceptions profile. Other groups, such
as Central Data Management review some of the exceptions.

In the Exception Workbench, the Associate can filter for medium priority exceptions, which are
indicated with a . Below is a view of the Exception Workbench with medium priority
exceptions filtered:

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Exception Workbench – Display Alerts (/FRE/EXC)

Step 6: Resolve Medium Priority Exceptions

As with the high priority exceptions, RTS frequently collaborates with other functional groups
such as F&R or Central Data Management to determine the appropriate actions to resolve
exceptions. For specific actions of an RTS Associate to resolve master data exceptions,
please see the RTS Exceptions Job Aid.

Notes

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 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
Access Review Resolve Mark Review Resolve Mark
Exception High High Exception Medium Medium Exception
Workbench Priority Priority as Priority Priority as
Exceptions Exceptions Resolved Exceptions Exceptions Resolved

Step 7: Mark Exception as Resolved

Once the RTS group has worked the assigned exceptions, the exceptions can be marked as
resolved.

To mark an exception as resolved:

1. Click anywhere on the row to select the exception.

2. Click . By marking the green check to the exception, the Associate can keep track
of which exceptions have been resolved.
Once all exceptions have been resolved, RTS has completed the tasks in the Exception
Workbench for the day. Below is the Exception Workbench – Display Alerts screen with the
status for an exception marked as complete:

Exception Workbench – Display Alerts (/FRE/EXC)

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7.0 Review

Suggested Time: 5 Minutes

The Ready to Serve (RTS) group assists the F&R group with system related errors that occur
within the F&R system. While the majority of the F&R tasks outlined are automatically run by
the system, it is possible that issues will arise. The RTS group helps to monitor and resolve these
technical exceptions.

The Associate should now be able to:

• Describe forecasting and replenishment at a high level
• Explain the F&R system and process at a high level
• Describe the three daily tasks of F&R Analysts
• Explain how to monitor technical exceptions in F&R
• Explain how to use the exception workbench to monitor and resolve F&R exceptions
• Describe the seven steps to resolve high and medium priority exceptions

Please review steps in the Exception Management process in the following table:

Step in Process Associate who Performs Step

Step 1: Access the Exception Workbench RTS
Step 2: Review High Priority Exceptions RTS
Step 3: Resolve High Priority Exceptions RTS, Data Management, F&R
Step 4: Mark Exception as Resolved RTS
Step 5: Review Medium Priority Exceptions RTS
Step 6: Resolve Medium Priority Exceptions RTS, Data Management, F&R
Step 7: Mark Exceptions as Resolved RTS

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8.0 Skills Practice

Suggested Time: 5 Minutes

Activity: Complete the skills practice questions to review the material covered in the
course. The answers are in the Solutions Key at the end of this course.

Short Answer

1. Name some transactional data objects.

2. What are the main responsibilities for the RTS Group?

3. What are delta loads?

4. What three items are used to determine suggested order quantity?

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9.0 Next Steps

Suggested Time: 5 Minutes

Please reference site http://helplibrary.homedepot.com/score for the simulations and processes

discussed earlier in this course.

In addition, THD Tools has several help functions. These help functions provide information
about the components of the THD Tools and explain how to use them.

The [F1] button opens the help section of THD Tools. The following options can also be
selected from the help menu:

Menu option Help

Application Help Context-sensitive help for tasks

SAP Library An online library of SAP documentation

Glossary Definitions for terminology used in SAP

Release Notes Information about enhancements and changes to SAP releases

In addition, the SAP Help Portal, located at Help.SAP.com, provides web-based documentation
for all SAP Solutions.

Associates can access practice exercises in the training environment and use the current log on
information for future use. If there are any other questions that cannot be answered using these
options, please direct them to the Coach.

CONGRATULATIONS!
You have just completed the Ready to Serve (RTS) course.
Please remember to complete the Learning Evaluation at the end of the course.

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Appendix

Supporting Documentation

Business Process Procedures (BPPs)

Exception Workbench (/FRE/EXC)

Manual Process Procedures (MPPs)

Exception Management

Simulations
This course does not require Simulations.

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How to Access BPPs, MPPs and Simulations

Use the instructions below to access supporting documentation to assist in performing

transactions in the training environment.

When working in a transaction screen in the training environment:

1. Access supporting documentation for a transaction within the training environment by
clicking the Help option from the menu bar while in the transaction.
2. Select the Help Now option from the drop down list. This will prompt a help window
from http://helplibrary.homedepot.com/score to appear to assist with the specific
transaction being used by the Associate.
3. When the pop-up window for the transaction appears, select the viewing format from the
drop down menu at the top of the pop-up window. Viewing formats include: Cue Card,
Work Instruction or Simulation (where available).

Alternatively, supporting documentation can be accessed using an internet browser:

1. Access supporting documentation using http://helplibrary.homedepot.com/score.
2. From the menu on the left side of the screen, select Non-Store.
3. Select the functional area of the course (i.e. Finance, Supply Chain, Foundation).
4. Select the process area within the functional area.
5. Select the appropriate title of the supporting document (BPP, MPP or SIM).
6. Select the preferred viewing format from the drop down menu at the top of the supporting
document to view a Cue Card (shortened) or Work Instruction (full text) version of the
transaction or a Simulation where available.

Viewing Format Options for Supporting Documentation

Cue Card Short text version of a BPP or MPP with expandable links.
Work Instruction Full text version of a BPP or MPP.
Simulation* Flash drive HTML 1. Auto Demonstration viewed by
file that appears in a Playback Associate
separate browser.
Simulations can be 2. Standard
Interactive Demonstration
run in two modes: Tutorial:
*Simulations are only available for select transactions.

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Solutions Key

2.0 Supply Chain Planning at The Home Depot

Question: What is forecasting?

Answer: Forecasting is anticipating product demand based on historical sales data
and knowledge of future events. The forecast is an input to replenishment
and logistics planning designed to ensure that products are available at a
specific location when they are needed.

Question: What is replenishment?

Answer: Replenishment is the process of acquiring a product on an ongoing basis
to support forecasted need. Replenishment cycles and distribution
methods are driven by forecast and sales and are dependent on product
categories.

3.1 Knowledge Check

Question 1: What are three main inputs to the F&R process?

Answer: a) Master data, transactional data, and profiles.

Question 2: What are the main outputs of the F&R process?

Answer: a) Mean forecast, net requirements, and order proposals.

Question 3: Which teams are involved?

Answer: d) All of the above

4.0 Day/Week in the Life of an F&R Inventory Analyst

Question: What day-to-day activities completed by the F&R Analysts impact the
FRP run?
Answer: The F&R Analysts have two daily tasks that affect the FRP run. Those
tasks are: 1) review and release order proposals; and 2) monitor alerts
and resolve exceptions.

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5.1 Monitor Export Process from THD Tools

Question: What is the difference between an initial transfer and a delta transfer?
Answer: An “initial transfer” is used to load all the master data from THD Tools
to F&R for the first time. A “delta transfer” is used to transfer only
changes made in THD Tools to F&R. It ensures that the data remains
consistent in both systems without pushing 100% of the data over to F&R.

Question: What is the purpose of an order proposal?

Answer: An order proposal is an output of the FRP run and is transmitted from
F&R to THD Tools. Order proposals are turned into purchase orders,
which are used to procure stock for the stores.

5.2 Knowledge Check

Question 1: Match the transaction code with the description by placing the
corresponding letter of description, in the Answer box beside the
transaction code.
Answer:

Answer Transaction Code Description

D FRE03 A. Transfer of Open Orders
E FRE01 B. Delta Transfer of Data
C FRE12 C. Delta Transfer of DIF Occurrences
A FRE04 D. Transfer of Time Series Data
B FRE02 E. Initial Transfer of Master Data

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6.0 Master Data Exception Management Process

Question: How often are Order Proposals released to THD Tools from F&R?
Answer: Order proposals are released to THD Tools from F&R daily at 7 and 9 am
for LDC orders and 6:00pm for all other orders. Order Proposals are
released through a nightly batch run. In addition to Order Proposals, the
FRP Run produces exceptions, which are system-generated errors that
require a manual review and release. Each day, exceptions must be
worked in order to release order proposals to replenish location products
to stores and DCs.

Most order proposals and exceptions, with the exception of the LDC to
store orders, are available for review until 6:00 pm each day.
At 6:00 pm the green and yellow status order proposals, those with no
remaining high priority exceptions, are released to THD Tools and
converted to Purchase Orders (POs) which are then transmitted to the
vendors.

7.1 Skills Practice

Question 1: Name some transactional data objects.

Answer: Transactional data objects include DIFs, Stock data, and order proposals.

Question 2: What are the main responsibilities for the RTS Group?
Answer: Monitor daily batch/interface jobs for F&R, proactively resolve technical
issues with batch/interface jobs, and provide technical and functional
support to Associates.

Question 3: What are delta loads?

Answer: Delta loads consist of daily updates to master data objects and
transactional data objects.

Question 4: What three items are used to determine suggested order quantities?
Answer: Release profiles, exceptions, and release job scheduling.

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Page 69 of 70 Ready to Serve (RTS) Version 1
Learning Evaluation
Course Title: Ready to Serve (RTS) Date:
Please circle the number that most closely matches your reaction to each statement & add comments as
needed
1=strongly disagree 2=disagree 3=neither 4=agree 5=strongly agree
CONTENT

The content level was appropriate for my knowledge and experience 1 2 3 4 5

The learning subject matter was sufficiently detailed and contained
enough information 1 2 3 4 5

DESIGN
The activities and exercises gave me sufficient practice and feedback 1 2 3 4 5
Time allowed for each topic, practice and the learning experience
1 2 3 4 5
overall was sufficient
DELIVERY
The learning was delivered effectively and enabled me to learn the
1 2 3 4 5
subject matter
The material was delivered in a manner that was clear and easy to
1 2 3 4 5
understand
Learning objectives were clearly presented and achieved 1 2 3 4 5
IMPRESSIONS
The knowledge and/or skills gained through this learning experience
1 2 3 4 5
are directly applicable to my job
I will use the knowledge and/or skill gained through this learning
1 2 3 4 5
experience on my job
ADDITIONAL FEEDBACK
What did you like best about this learning experience?

What did you like least about this learning experience?

How will you apply these skills on the job?

PLEASE RETURN THIS EVALUATION TO YOUR COACH.

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