Min MAX Latest

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Oracle Inventory Min–Max PlanningMin–Max Planning

You can use min–max planning to maintain inventory levels for all of 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 (on–hand quantities plus

quantities on order) drops below the minimum, Oracle nventory suggests a new

purchase re!uisition, internal re!uisition, move order, or "ob to bring the balance bac# up

to the maximum.

Oracle Inventory performs min–max planning for your items at either

Organi$ation level

%ub inventory level.

When you min–max plan at the organi$ation level, you can optionally include the

following transactions as demand in the min–max planning calculation&

'nreserved sales orders, reserved sales orders, account issue move orders, and wor# in

process component re!uirements. urchase re!uisitions and internal re!uisitions for buy

items and W unreleased "obs for ma#e items for the suggested replenishment

!uantities can be optionally created. You can then turn these re!uisitions into purchase

orders or internal orders and the unreleased "obs into "obs for the re!uired items.

Organization Level Min–Max PlanningWhen you min–max plan at the organi$ation level, Oracle nventory loo#s at inventory

balances, purchase re!uisitions, internal re!uisitions, internal sales orders, and W "obs

as supply. t loo#s at sales orders, W "ob component re!uirements, and account issue

move orders as demand.

o use min–max planning at the organi$ation level, you must set the item attributes used

by min–max planning. You can start by setting the nventory lanning *ethod item

attribute to Min–max planning. You establish your minimum and maximum levels used in

the calculation using the *in–*ax *inimum +uantity and the *in–*ax *aximum

+uantity item attributes. You can optionally set the order !uantity modier item

attributes (*inimum Order +uantity, *aximum Order +uantity, and -ixed ot %i$e

*ultiplier) to further control the suggested order !uantities generated by min–max

planning. %et the *a#e or /uy 0ag to Make to optionally generate unreleased "obs and to

Buy to optionally generate re!uisitions. -or buy items, set the ist rice for the item to

automatically generate re!uisitions.

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-or repetitive items, since you cannot generate repetitive plans, you have the option of

generating re!uisitions, unplanned "obs, or a report only.

*in–max planning is performed by running the *in–*ax lanning report. /y selecting

organi$ation level planning, you run min–max planning for your organi$ation. n addition

to the planning level option, Oracle nventory o1ers the options to Net Reserved Orders,

Net Unreserved Orders, Net WIP Demand, and Include Nn–netta!le Inventry "uantities

when calculating availability. You also specify a Demand #ut$ Date and a %upply #ut$

Date.

If you choose No to all the net demand options, Oracle Inventory performs the

following calculation

2ettable +uantity on 3and 4 On Order 5 otal 6vailable, in which&

2ettable +uantity on 3and is the sum of the !uantities on hand for the item across

all the nettable sub inventories within your organi$ation. 2on–nettable !uantities

may optionally be included.

On Order is the sum of open purchase orders, purchase re!uisitions, internal

re!uisitions, internal orders, and wor# in process "obs scheduled for receipt on or

before the supply cuto1 date.

f otal 6vailable 7 *inimum +uantity, suggest a new order, in which&

*inimum +uantity is the value for the *in–*ax *inimum +uantity item attribute.

Order +uantity 5 *aximum +uantity – otal 6vailable, ad"usted for order !uantity

modiers&

Oracle nventory revises the order !uantity if necessary for the !uantity to be a

multiple of the xed lot si$e multiplier.



he order !uantity must be greater than or e!ual to the minimum !uantity, or

Oracle nventory revises the !uantity upward to the minimum.

If you choose Yes to any of the net demand options, Oracle Inventory performs

the following calculation

2ettable +uantity on 3and 4 On Order – Open 8emand 5 otal 6vailable, in which

2ettable +uantity on 3and is the sum of the !uantities on hand for the item across

all the nettable subinventories within your organi$ation. 2on–nettable !uantities

may optionally be included.

On Order is the sum of open purchase orders, re!uisitions, internal orders, and

wor# in process "obs scheduled for receipt on or before the supply cuto1 date.

Open 8emand is the sum of unreserved sales orders, inventory reservations,

including reserved sales orders, account issue move orders, and W component

demand scheduled for issue on or before the demand cuto1 date.

f otal 6vailable 7 *inimum +uantity, suggest a new order, in which

*inimum +uantity is the value for the *in–*ax *inimum +uantity item attribute.

Order +uantity 5 *aximum +uantity – otal 6vailable, ad"usted for order !uantity

modiers&

Oracle nventory revises the order !uantity if necessary for the !uantity to be a

multiple of the xed lot si$e multiplier.

he order !uantity must be greater than or e!ual to the minimum !uantity, or

Oracle nventory revises the !uantity upward to the minimum.

he order !uantity must be less than or e!ual to the maximum !uantity, or Oracle

nventory revises the !uantity down to the maximum.

When you run the *in–*ax lanning report, you can have Oracle nventory create

re!uisitions for buy items and unreleased "obs for ma#e items by answering &es to

Restck . You must also specify a location to serve as the default deliver to location on

the re!uisitions. Oracle nventory creates purchase re!uisitions for /uy items when the

item attribute 9eplenishment %ource ype is set to %upplier . Oracle nventory creates

internal re!uisitions for internal sales orders for /uy



tems when the item attribute 9eplenishment %ource ype is set to Inventry . -or interna

re!uisitions, Oracle nventory uses the item attribute %ource Organi$ation to determine

the organi$ation from which the internal re!uisition sources the item. -or Repetitive

Items you optionally create re!uisitions or unreleased "obs.

he following example shows you how Oracle nventory performs min–max planning.

6ssume an item has the following !uantity values and item attribute settings&

2ettable !uantity on hand 5 :;

Open supply !uantity 5 ;<

Open reserved sales order !uantity 5 =<

nventory planning method 5 *in–max planning

*in–max minimum !uantity 5 ><<

*in–max maximum !uantity 5 ;<<

If you run the Min–Max Planning report, and specify No to Net Reserved

Orders, Oracle Inventory performs the following calculations

otal 6vailable& :; 4 ;< 5 ?;

We assume that all the supply is within the supply cuto1 date, for a supply total of

;<.

otal available !uantity is ?;.

/elow min chec#& ?; 7 ><<

he total available !uantity is less than the min–max minimum !uantity, so Oracle

nventory plans a new order.

*ax !uantity less total available& ;<< – ?; 5 @:;

o bring the !uantity available bac# to the min–max maximum, Oracle nventory

will plan an order for @:;.

If you run the Min–Max Planning report, and specify Yes to Net Reserved

Orders, Oracle Inventory performs the following calculations

otal 6vailable& (:; 4 ;<) – =< 5 (–>;)



We assume that all the supply is within the supply cuto1 date, for a supply total of

;<.

We assume that all the demand is within the demand cuto1 date, so open reserved

orders total to =<.

otal available !uantity is (–>;).

/elow min chec#& (–>;) 7 ><<

he total available !uantity is less than the min–max minimum !uantity, so Oracle

nventory plans a new order.

*ax !uantity less total available& ;<< – (–>;) 5 ;>;

o bring the !uantity available bac# to the min–max maximum, Oracle nventory

will plan an order for ;>;.

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