Min Max Planning

Min Max Planning

CONTENTS

Introduction

Organization Level Min-Max Planning

Setup

Run the Min Max Report

Subinventory Level Min-Max Planning

11

Setups

11

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.

Min Max Planning

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

Min Max Planning

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
Max Quantity is

60
300

Order Quantity
Fixed Lot Multiplexer is
Minimum Quantity
Maximum Quantity

15
100
150

Min Max Planning

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.

Min Max Planning

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.

Min Max Planning

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
Login to PO Responsibility
Submit a New Request
Min Max Planning

Go to Requisition Summary to Find out our PRs

Min Max Planning

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

Subinventory Level Min-Max Planning

Min Max Planning

10

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

Navigate

Setup: Organization: Subinventory

Query Subinventory which we are planning Min Max Planning

Min Max Planning

11

Click On Item/Subinventory

Select the Item and Enable the Min Max Planning

Enter the Min and Max Qty
Go to Order Modifiers
Enter the Fixed Lot Multiple, Min Order Qty and Max Order Qty
Min Max Planning

12

Sourcing Tab

Lead Time is not mandatory for Min Max Planning

Save the Changes
Make a miscellaneous Receipt because the Subinventory Min Max Planning generates
Move Orders.
Make a sufficient Qty in any one or our Subinventory in the same Inventory Org
Navigation Inventory: Transactions: Miscellaneous Transaction
Min Max Planning

13

Run the Min Max Report

Select the Planning Level as Subinventory and Select the Subinventory

Min Max Planning

14

Note : Remaining Parameters as same as Org Parameters

The Quantity in Our Subinventory Is Less than Min Qty it will trigger the Min Max Plan
and generates the Move Orders for Max 120 Qty
Inventory Qty
Min Qty
Max Qty
Order Modifiers
Min Order Qty
Max Order Qty
Fixed Lot Multiple6
Min Max Planning

24
120
18
30

15

Check for the Move Orders

Navigation Inventory:Move Orders

Transact the Move Order

Min Max Planning

16

Check On-hand Qty

Navigation
On-hand Availability : On-hand Qty
Query the Item

Min Max Planning

17