Min Max Planning

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CONTENTS

Introduction 3

Organization Level Min-Max Planning 3

Setup 5

Run the Min Max Report 6

Subinventory Level Min-Max Planning 11

Setups 11

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Introduction

You can use min-max planning to maintain inventory levels for all your items or selected items. With min-max planning, you specify minimum and maximum inventory levels for your items. When the inventory level for an item drops below the minimum, Oracle Inventory suggests a new requisition or job to bring the balance back up to the maximum.Oracle Inventory performs min-max planning for your items at either the organization level or the subinventory level. When you min-max plan at the organization level, you can optionally include open sales orders and work in process component requirements as demand in the min-max planning calculation. Purchase requisitions for buy items and WIP unreleased jobs for make items for the suggested replenishment quantities can be optionally created. You can then turn these requisitions into purchase orders or internal orders and the unreleased jobs into jobs for the required items.When you min-max plan at the subinventory level, you can optionally include only open sales orders as demand in the min-max planning calculation. Requisitions for the suggested replenishment quantities can be optionally created. Also, subinventory level planning cannot generate jobs and does not consider WIP jobs as supply or WIP components as demand. You can then turn these requisitions into purchase orders or internal orders for the required items.

Organization Level Min-Max PlanningWhen you min-max plan at the organization level, Oracle Inventory looks at inventory balances, purchase orders and WIP jobs as supply and sales order and WIP job component requirements as demand.To use min-max planning at the organization level you must set the item attributes used by min-max planning. You can start by setting the Inventory Planning Method item attribute to Min-max planning. You establish your minimum and maximum levels used in the calculation using the Min-Max Minimum Quantity and the Min-Max Maximum Quantity item attributes. You can optionally set the order quantity modifier item attributes (Minimum Order Quantity, Maximum Order Quantity, and Fixed Lot Size Multiplier) to further control the suggested order quantities generated by min-max planning. Set the Make or Buy flag to Make to optionally generate unreleased jobs and to Buy to optionally generate requisitions.For repetitive items, since you cannot generate repetitive plans, you have the option of generating requisitions, unplanned jobs, or a report only.Min-max planning is performed by running the Min-Max Planning Report. By selecting organization level planning, you run min-max planning for your organization. In addition to the planning level option, Oracle Inventory offers the options to Net Reserved Orders, Net Unreserved Orders, Net WIP Demand, and Include Non-nettable Inventory Quantities when calculating availability. You also specify a Demand Cutoff Date and a Supply Cutoff Date. If you choose No to all the net demand options, Oracle Inventory performs the following calculation:

When you run the Min-max planning report, you can have Oracle Inventory create requisitions for Buy items and unreleased jobs for Make items by answering Yes to Restock. You must also specify a location to serve as the default deliver to location on the requisitions. Oracle Inventory creates purchase requisitions for Buy items when the item attribute Replenishment Source Type is set to Supplier. Oracle Inventory creates internal requisitions for internal sales orders for Buy items when the item attribute Replenishment Source Type is set to Inventory. For internal requisitions, Oracle Inventory uses the item attribute Source Organization to determine the organization from which the internal requisition sources the item. For Repetitive Items you optionally create requisitions or unreleased jobs.

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The following example shows you how Oracle Inventory performs min-max planning. Assume an item has the following quantity values and item attribute settings:

SetupCreate an Item and apply Purchasing TemplateEnter the List Price in Purchasing Tab Go to General Planning Region

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Inventory Planning Method as Min Max PlanningEnter the Minim and Max QuantityEnter the Order QuantitySelect Source Type if Min Max is Organization Level we can choose Inventory or

SupplierFix Lot Multiplier it the quantity where the Orders are created multiple of Fixed lot

Multiplexer

With this the Setup is completed

If we run the Min Max Report It will Calculate if the Inventory Level is Less than Min Quantity It will raise the Purchase Requisitions Up to the Max Level

Calculation

Inventory QuantityMin Quantity is 60Max Quantity is 300

Order QuantityFixed Lot Multiplexer is 15Minimum Quantity 100Maximum Quantity 150

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Inventory Quantity is Less than 60 it will raise PR up to 300 Quantity

To Run the Min Max Report Navigation Planning: Max Planning: Run Min Max Planning

1. Navigate to the Min-Max Planning window.2. Enter Request in the Type field.3. Enter Min-max planning report in the Name field.4. Navigate to the Parameters field. The Parameters window appears.5. Indicate whether the planning level is set for the entire organization or a specific subinventory. At the subinventory level, the report cannot generate jobs and does not consider WIP jobs as supply or WIP components as demand. If you select Subinventory, enter the name of the subinventory.6. Indicate the type of item to include on the report. You can report on items under the minimum quantity, items over the maximum quantity, or all min-max planned items.7. Enter the category set for the report.8. You can optionally restrict the report to a range of categories, item, planners, or buyers.9. Enter the sorting criterion for the report. You can choose to sort by inventory item, category, planner, or buyer. If you choose Category, enter the category set.10. Enter the demand cutoff date and, optionally, the demand cutoff date offset. The report includes demand on or before this date. If you do not check Net Demand this calculation is for display purposes only.

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11. Enter the supply cutoff date and, optionally the supply cutoff date offset. The calculation includes open supply orders on or before this date.12. Enter Yes or No to indicate whether to restock. If you have set the Planning Level to Organization, the report generates requisitions or jobs according to the item's Make/Buy flag. If you have set the Planning Level to Subinventory, the report generates only requisitions.13. If you are using the Organization Planning Level, choose one of the following For Repetitive Item options: Create Requisitions for items under minimum quantity, Create Discrete Jobs for items under minimum quantity or run the Report Only without creating jobs or requisitions.14. Enter the default delivery location.15. Indicate whether to net reserved and unreserved orders.16. Indicate whether to Net WIP Demand in the available quantity calculation. Net demand is the unshipped sales quantity for the selected organization or subinventory. You cannot set this to Yes if you are using subinventory level planning.17. Indicate whether to include PO, WIP, and Interface supply and non-nettable subinventories.18. Choose one of the following Display Format options: Display All Information, Don't Display Supply/Demand Details (The report does not display the Minimum Order Quantity, Maximum Order Quantity, and Multiple Order Quantity columns.), or Don't Display Order Constraints (The report does not display the On Hand Quantity column).19. Indicate whether to to Display Item Information.20. Choose the Submit button to launch the report.

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Click on View Output

Note: It will update the PR Details in Requisition Import table but it wont raise any PR we need to Run the Requisition Import to raise the PR

Login to PO Responsibility

Submit a New Request

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Go to Requisition Summary to Find out our PRs

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It Generated 2 Lines each 150 because our Order Quantity Level is 150

Subinventory Level Min-Max Planning

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When you min-max plan at the subinventory level, Oracle Inventory looks at inventory balances, purchase order and internal order supply, and optionally, sales order demand for a single subinventory only. In addition, rather than using item attribute planning modifiers, Oracle Inventory uses values and parameters set at the item/subinventory level.To perform min-max planning at the subinventory level, you establish the following values at the subinventory level using either the Subinventory Items or the Item Subinventories windows:

Setups

Create an Item Apply Purchasing Template

Navigate Setup: Organization: Subinventory

Query Subinventory which we are planning Min Max Planning

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Click On Item/Subinventory

Select the Item and Enable the Min Max Planning Enter the Min and Max Qty

Go to Order Modifiers Enter the Fixed Lot Multiple, Min Order Qty and Max Order Qty

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Sourcing Tab

Lead Time is not mandatory for Min Max Planning

Save the Changes

Make a miscellaneous Receipt because the Subinventory Min Max Planning generates Move Orders.Make a sufficient Qty in any one or our Subinventory in the same Inventory Org

Navigation Inventory: Transactions: Miscellaneous Transaction

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Run the Min Max Report

Select the Planning Level as Subinventory and Select the Subinventory

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Note : Remaining Parameters as same as Org Parameters

The Quantity in Our Subinventory Is Less than Min Qty it will trigger the Min Max Plan and generates the Move Orders for Max 120 Qty

Inventory QtyMin Qty 24Max Qty 120

Order ModifiersMin Order Qty 18Max Order Qty 30Fixed Lot Multiple 6

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Check for the Move OrdersNavigation Inventory:Move Orders

Transact the Move Order

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Check On-hand QtyNavigation On-hand Availability : On-hand Qty

Query the Item

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