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Min Max Planning
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What is Min Max Planning?
specify minimum and maximum inventory levels for your items.
Minimum = “order point”. Maximum = "order up to" . When the inventory level for an item drops below
the minimum, Oracle Inventory suggests a new purchase requisition, internal requisition, or job to bring the balance back up to the maximum.
Purchase Requisition:- Item=Buy Source =Supplier
Internal Requisition:- Item=Buy Source =Org/Subinventory
Job:- Item=Make
Inventory Level = (on-hand quantity - demand) + (quantity on-order) .
Where: Demand = unreserved sales orders + reserved
sales orders + WIP component demand On-Order Qty = open PO + Requisitions + WIP
jobs
TIMING OF ORDERS
Inventory Level < minimum quantity
QUANTITY OF ORDERS
Order quantity = Maximum Qty – Inventory Level
Performed by running the Min-Max Planning report.
Can perform at 2 levels: Organization Subinventory
NOTE:- Subinventory level planning cannot generate jobs and
does not consider WIP jobs as supply or WIP components as demand
Org Level Uses item attribute planning modifiers
Subinventory Level Uses values and parameters set at the
item/subinventory level.
Set Up
Item Attributes: Inventory Item Stockable Costing enabled Inventory Asset Value Purchased Purchasable List Price (if Buy item) Inventory Planning Method: Set to Min-Max
Org Level Set Up
In Item General Tab,Enter: Min-Max Minimum Quantity Min-Max Maximum Quantity Source Type
Inventory Subinventory Supplier
Subinventory Level Set Up
values can be set using either the Subinventory Items or the Item/Subinventories windows: Min-max minimum quantity Min-max maximum quantity Planning method set to Min-max planning Item sourcing details
Inventory Subinventory Supplier