Min Max Planning

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

Run Min Max Planning Report Process

•Items Under Minimum qty

•Items Over maximum qty

•All Min Max Items

= On hand + Supply + demand

Now Go To Purchasing Run Requisition Import Process Go To Requisition Summary Window

Your Requisition No.

Auto Create The PO and follow the P2P cycle.