MINMAX PLANNING PROGRAM

Min-Max planning is one of the major replenishment methods in Oracle Inventory. Specify minimum and maximum quantities for items. Min-Max planning program can be executed in two levels they are:

1) Organization level: The min max quantities will be specified in organization level2) Sub inventory level: The min max quantities will be specified in specify sub

inventory level

Purpose of the Min Max Planning program:

When the inventory level for an item drops below the minimum qty, Oracle Inventory suggests a new purchase requisition or internal requisition, or job to bring the balance back up to the maximum. The requisition type is base up on the Item. If Item=Buy, Source =Supplier then it is Purchase Requisition If Item=Buy, Source =Org/Sub inventory then it is Internal Requisition If Item=Make then it is Job 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 TIMING OF ORDERS: Inventory Level < minimum quantity QUANTITY OF ORDERS: Order quantity = Maximum Qty – Inventory Level

NOTE: Sub inventory level planning cannot generate jobs and does not consider WIP jobs as supply or WIP components as demand

Min-Max Planning Parameters:

Planning Level:Choose one of the following options.i) Organization: Perform planning for the entire organization. ii) Subinventory: Perform planning only for the specified subinventory. The report cannot generate jobs and does not consider WIP jobs as supply or WIP components as demand.

Subinventory:Enter the subinventory. You can enter this field only when you choose the subinventory planning level.

Item Selection: Enter the type of item you want to include on the report. Items under minimum quantity all items that fall under the minimum quantity. Items over maximum quantity all items that fall over the maximum quantity. All min-max planned items all items that are identified as min-max planned items.

Category Set:Enter the category set.

Categories from...To:Enter a range of categories to restrict the report to one or more categories.

Items from...To:Enter a range of items to restrict the report to one or more items.

Planners from...To:Enter a range of planners to restrict the report to one or more planners.

Buyers From...To:Enter a range of buyers to restrict the report to one or more buyers.

Sort By:Enter Inventory Item, Category, Planner, or Buyer to select the sorting criterion.

Demand Cutoff Date: Enter the demand cutoff date. The report includes demand on or before this date. If you set Net WIP Demand to No this calculation is for display purposes only.

Demand Cutoff Date Offset:Enter the demand cutoff date offset.

Supply Cutoff Date:Enter the supply cutoff date. The calculation includes open supply orders on or before this date.

Supply Cutoff Date Offset:Enter the supply cutoff date offset.

Restock: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.

For Repetitive Item:This is not applicable for subinventory-level planning. If you are using the Organization Planning Level, choose one of the following options:Create Requisition Create requisitions for items under minimum quantity. Create Discrete Job Create discrete jobs for items under minimum quantity. Report Only Run the report without creating jobs or requisitions.

Default Delivery To: Enter the default delivery location.

Net Unreserved Orders:Enter Yes or No to indicate whether to net unreserved orders.

Net Reserved Orders:Enter Yes or No to indicate whether to net reserved orders.

Net WIP Demand:Enter Yes or No to indicate whether to net WIP demand. 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.Include PO Supply:Enter Yes or No to indicate whether to include PO supply.

Include WIP Supply:Enter Yes or No to indicate whether to include WIP supply.

Include Interface Supply:Enter Yes or No to indicate whether to include interface supply.

Include Non-netable Subinventories:Enter Yes or No to indicate whether to include non-nettable subinventories.

Display Format:Choose one of the following:Display All Information the report displays all columns. Don't Display Supply/Demand Details the report does not display the Minimum Order Quantity, Maximum Order Quantity, and Multiple Order Quantity columns Don't Display Order Constraints the report does not display the On Hand Quantity column.

Display Item Information:Enter Yes or No to indicate whether to display item information.

MIN-MAX PLANNING PROGRAM AT ORGANIZATION LEVEL:

Item Attributes: 1) Inventory Item2) Stockable3) Costing enabled4) Inventory Asset Value5) Purchased6) Purchasable7) List Price (if Buy item)8) Inventory Planning Method: Set to Min-Max

The below process is for the Organization level Min-Max planning program

Now save the formGo to inventoryPlanningMin-Max planning

Click ok button, click submit refresh data up to the status completed Click on view output button

On hand qty =0Min qty =50

Max qty =100It fails to maintain min qty at organization level so reorder qty try to reach the >=max qtyReorder qty =100

Go to purchasingViewRequestRun “Requisition Import” program

Click ok and submit buttons and click refresh data up to status is completedGo to purchasingrequisition summary

Enter the item which is in min max planning out put window

Click on “Find” buttonCopy the requisition number

Go to purchasingAutocreateClick on clear button

Paste the requisition number in requisition column

Then click find buttonCheck the lineClick “Automatic” button

Give the supplier name and supplier site then click create

Now the po form is opened with incomplete status

Click on Approve button

Copy the po numberGo to receivingreceiptsPast the po number

Click find buttonClick the back windowCheck the lineEnter the subinventory

Click on header button

Now the save the workReceipt number is generated

Now the check the quantity in on handGo to inventoryon-hand availabilityon hand quantityEnter the item name

Click find button

The above on hand quantity is the quantity which is the reorder quantity in min max planning program.

MIN-MAX PLANNING PROGRAM AT SUBINVENTORY LEVEL:

In this process the stock will be checked in the subinventory level. Item creation is same as in the above process. But we have to assign item to another organization after save the work.

Select the organization which you need for example M1

Save the work

Values can be set using either the Subinventory Items or the Item/Subinventories windows:

Min-max minimum quantityMin-max maximum quantity

Item sourcing details: Inventory Subinventory Supplier

Make sure that two subinventories – one with an adequate supply of the item and one with zero on hand balance for that item. Selects FGI for the first and Stores for the second.use Miscellaneous Receipt to create an initial on hand balance of 500 units of item in the FGI subinventory.

In this example i select item subinventories

Enter the subinventory, min qty, max qty and check the box

Now select order modifiers tab and give the order qty min and max (optional)

If we give the “fixed lot multiple” then the reorder qty will get >= multiples of the given number

Now select sourcing tab give type as subinventory and subinventory as FGI

Now run the Min-Max Planning program with planning level as subinventory and subinventory as stores which we specify above

Click ok button and submit

Go to inventorymove ordersTransact move orders

Click in lines tab and enter item name

Click find button

Check the line and click transact button if you want to check copy the above numberNow go to inventorymove ordersmove ordersClick f11 paste the number

Now click ctrl+f11 and check qty delivered this is reorder qty in min max planning report

Now go to inventoryon-hand, availabilityon-hand quantity Enter the item name

Click find button and check it in stores subinventory on-hand