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How To Setup Min-Max Planning Oracle

To set up Min-Max planning, you must: 1. Set up the item with the inventory planning method of Min-Max and specify the min-max quantities. 2. Set up the item-subinventory relationship if planning at the subinventory level. 3. Set the profile option INV: Minmax Reorder Approval to determine requisition approval status. 4. Launch Min-Max planning to generate work orders, purchase requisitions, or internal requisitions based on make-or-buy and sourcing rules to maintain inventory levels between the min and max quantities.

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532 views6 pages

How To Setup Min-Max Planning Oracle

To set up Min-Max planning, you must: 1. Set up the item with the inventory planning method of Min-Max and specify the min-max quantities. 2. Set up the item-subinventory relationship if planning at the subinventory level. 3. Set the profile option INV: Minmax Reorder Approval to determine requisition approval status. 4. Launch Min-Max planning to generate work orders, purchase requisitions, or internal requisitions based on make-or-buy and sourcing rules to maintain inventory levels between the min and max quantities.

Uploaded by

farooqs21
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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How to setup Min-Max Planning (JFr, March, 17 2014)

Scenario:
You want to setup Min-Max Planning for an Item.

How to do:

The steps are:


– Item setup,
– Item-subinventory setup,
– Set a value for the profile INV: Minmax Reorder Approval,
– Launch the Min-Max Planning.

1-Item setup:

Responsibility Inventory > Items > Organization (or Master Items)

Tab General Planning : Mandatory fields are:


• Inventory Planning Method= Min-Max,
• Min-Max Quantity,
• Make or Buy.

Not mandatory fields are:


• Planner,
• Order Modifiers.

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If the item is Buy. In the Purchasing Tab, the mandatory fields are:
• Purchasable,
• List price (not null),
• Market price (not null).

If the item is Make. In the Work in Process Tab, the mandatory field is Build in WIP.

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2-Item-subinventory setup:

The Min-Max Planning can be launched at the Inventory Organization Level or at the
Subinventory Level. But if you want to use the Subinventory Level you will have to
setup the relation between the item and the subinventory.

MANDATORY: for Min-


Max planning at the
Subinventory Level

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3-Set a value to the profile INV: Minmax Reorder Approval:

Set the profile option INV: Minmax Reorder Approval. With Pre-approved, the
requisition will be created at the Approved status.

Note: if the requisition is created as Approved and if the setup is complete a Blanket
Release or a Purchase Order can be created automatically.

4-Launch the Min-Max Planning:

4.1 Sourcing:

If the field Make or Buy (Tab General Planning) is at Make a Work Order is created.

If the field Make or Buy is at Buy, the program will check the field Source (Tab
General Planning) if it is at Supplier a Requisition will be created, if it is at Inventory
an Internal Demand will be created.

Note: Sourcing rules can also be used.

4.2 Calculation:

Availability calculation:
On hand – Demand within cutoff horizon + Supply within cutoff horizon

* If the availability calculation is above the min quantity nothing is performed


* If the availability calculation is below the min quantity a supply is created to reach
the max quantity.

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Example of calculation:
On hand = 10
Demand within cutoff horizon: 5
Supply within cutoff horizon: 15
Min quantity = 100
Max quantity = 1000

Availability calculation: 10 -5 + 15 = 20 (below min quantity)


The reorder will be: 1000-20 = 980

Note: The order modifiers are also taken into account

4.3 Inventory Organization Level:

Launched at the Inventory Organization Level Min-Max can generate:

• Purchase requisition,
• Internal requisition,
• Work order.

Yes

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4.4 Subinventory Level:

Launched at the Subinventory Level Min-Max can generate:


• Purchase requisition,
• Internal requisition, Subinventory is
• Mover order. mandatory

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