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Min Max Planning

Min Max Planning

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Published by nagendranathareddy
Mini Max Planning In Oracle Apps
Mini Max Planning In Oracle Apps

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Published by: nagendranathareddy on Apr 03, 2012
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09/17/2014

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Min Max Planning
Min Max Planning
1
 
CONTENTS
Introduction3Organization Level Min-Max Planning3Setup5Run the Min Max Report 6Subinventory Level Min-Max Planning11Setups11
 Min Max Planning
2
 
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 newrequisition 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 thesubinventory level. When you min-max plan at the organization level, you can optionally includeopen 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 itemsfor the suggested replenishment quantities can be optionally created. You can then turn theserequisitions into purchase orders or internal orders and the unreleased jobs into jobs for therequired items.When you min-max plan at the subinventory level, you can optionally include only open salesorders as demand in the min-max planning calculation. Requisitions for the suggestedreplenishment quantities can be optionally created. Also, subinventory level planning cannotgenerate jobs and does not consider WIP jobs as supply or WIP components as demand. You canthen 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 asdemand.To use min-max planning at the organization level you must set the item attributes used by min-max 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 theMin-Max Minimum Quantity and the Min-Max Maximum Quantity item attributes. You canoptionally set the order quantity modifier item attributes (Minimum Order Quantity, MaximumOrder Quantity, and Fixed Lot Size Multiplier) to further control the suggested order quantitiesgenerated by min-max planning. Set the Make or Buy flag to
 Make
to optionally generateunreleased jobs and to
 Buy
to optionally generate requisitions.For repetitive items, since you cannot generate repetitive plans, you have the option of generatingrequisitions, unplanned jobs, or a report only.Min-max planning is performed by running the Min-Max Planning Report. By selectingorganization 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
whencalculating availability. You also specify a
 Demand Cutoff Date
and a Supply
Cutoff Date
. If youchoose
 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 requisitionsfor Buy items and unreleased jobs for Make items by answering
Yes
to
 Restock 
. You must alsospecify a location to serve as the default deliver to location on the requisitions. Oracle Inventorycreates purchase requisitions for Buy items when the item attribute Replenishment Source Type isset to
Supplier 
. Oracle Inventory creates internal requisitions for internal sales orders for Buyitems when the item attribute Replenishment Source Type is set to
 Inventory
. For internalrequisitions, Oracle Inventory uses the item attribute Source Organization to determine theorganization from which the internal requisition sources the item. For 
 Repetitive Items
youoptionally create requisitions or unreleased jobs.
Min Max Planning
3

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