Oracle Min-Max Planning

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 Planning

When 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 minmax 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.

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

Setup

Create an Item and apply Purchasing Template

Enter the List Price in Purchasing Tab

Go to General Planning Region

Inventory Planning Method as Min Max Planning

Enter the Minim and Max Quantity

Enter the Order Quantity

Select Source Type if Min Max is Organization Level we can choose Inventory or Supplier

Fix 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 Quantity

Min Quantity is 60

Max Quantity is 300

Order Quantity

Fixed Lot Multiplexer is 15

Minimum Quantity 100

Maximum Quantity 150

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.

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.

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

Go to Requisition Summary to Find out our PRs

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

Subinventory Level Min-Max Planning

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