Min Max Planning

What is Min Max Planning?

 specify minimum and maximum inventory levels

for your items.
 Minimum = “order point”.
 Maximum = "order up to" .
 When the inventory level for an item drops below
the minimum, Oracle Inventory suggests a new
purchase requisition, internal requisition, or job to
bring the balance back up to the maximum.
 Purchase Requisition:-
 Item=Buy
 Source =Supplier
 Internal Requisition:-
 Item=Buy
 Source =Org/Subinventory
 Job:-
 Item=Make
 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
jobs
 TIMING OF ORDERS
Inventory Level < minimum quantity

 QUANTITY OF ORDERS
Order quantity = Maximum Qty – Inventory Level
 Performed by running the Min-Max Planning
report.
 Can perform at 2 levels:
 Organization
 Subinventory
 NOTE:-
Subinventory level planning cannot generate jobs and
does not consider WIP jobs as supply or WIP
components as demand
 Org Level
 Uses item attribute planning modifiers
 Subinventory Level
 Uses values and parameters set at the
item/subinventory level.
Set Up

Item Attributes:
 Inventory Item
 Stockable
 Costing enabled
 Inventory Asset Value
 Purchased
 Purchasable
 List Price (if Buy item)
 Inventory Planning Method: Set to Min-Max
Org Level Set Up

In Item General Tab,Enter:

 Min-Max Minimum Quantity
 Min-Max Maximum Quantity
 Source Type
 Inventory
 Subinventory
 Supplier
Subinventory Level Set Up

 values can be set using either the Subinventory

Items or the Item/Subinventories windows:
 Min-max minimum quantity
 Min-max maximum quantity
 Planning method set to Min-max planning
 Item sourcing details
 Inventory
 Subinventory
 Supplier
Run Min Max Planning Report
Process
•Items Under
Minimum qty
•Items Over
maximum
qty
•All Min Max
Items
= On hand + Supply +
demand
 Now Go To Purchasing
 Run Requisition Import Process
 Go To Requisition Summary Window
Your
Requisition
No.
Auto Create The PO and follow the P2P
cycle.