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An Oracle White Paper June 2002
Please see the section on reorder quantity calculations for more information. responsibility. Inventory predefines a value of Approved for this profile for all levels upon installation. Requisitions. It has two values: “Incomplete” and “Approved”. It is assumed that the reader is already familiar with the material covered in the User Guide’s section on Min-Max Planning. If you choose Incomplete. For WIP. Requisitions and WIP work orders (but not Inventory move orders). setting the profile to Approved ensures that the job or schedule is in a status of Released upon creation (a profile value of Incomplete will set the job status to Unreleased).Oracle Warehouse Management System Min-Max Replenishment INTRODUCTION The purpose of this white paper is to provide a more detailed description of the working of Inventory’s Min-Max Planning report than is done in the Inventory User Guide. INV_MINMAX_REORDER_APPROVED (INV: Minmax Reorder Approval) – This profile determines whether restock orders generated by min-max are created with status already set to ‘approved’. 1 . It affects Purchase Orders. or require additional processing for approval. application or site). We start with the profile options used by the report. Profiles used by Min-Max Planning Note: These profiles are updateable at all levels (user. you can load requisitions as unapproved and use the document approval functionality in Oracle Purchasing. the report will choose the highest valid revision of a revisioncontrolled item and specify this revision for the purchase orders or requisitions that are created for restocking. INV_ROUND_REORDER_QTY (INV: Round Reorder Qty) – Only used if a fixed lot multiple is specified for a min-max planned item. then describe how reorder quantity gets calculated and finally discuss the restocking process where min-max generates Purchase Orders. INV_PURCHASING_BY_REVISION (INV:Purchasing By Revision) – If this profile is set to “Yes”. Defining a fixed lot multiple ensures that the reorder quantity is adjusted upwards or downwards to make it an even multiple of that value. If the profile is set to “Yes” the reorder quantity is rounded up and if it is set to “No” the reorder quantity is rounded down. WIP Jobs and Move Orders for replenishment.
demand). For e. it goes through the following additional checks in the order in which they are listed: • If a fixed lot multiple is defined. the 2 . NO If Minimum and Maximum Order Quantities specified then consider them for reorder quantity calculation Arrive at a final reorder quantity and reorder using the correct source type After arriving at an initial estimate for the reorder quantity (Maximum quantity – Total available.Total Available Fixed Lot Multiple Defined? YES Take the INV_ROUND_REORDER_ QTY profile values in consideration.Reorder Quantity Calculation Reorder Quantity? YES Total Available < Minimum for Item NO Total Available >= Minimum for Item How much to Reorder??? Reorder Quantity = Maximum Stockable Quantity . if the reorder quantity was initially estimated to be 24. where total available = on hand + supply . round the reorder up or down based on profile INV_ROUND_REORDER_QTY.g. and the fixed lot multiple was set to 10.
The following table has examples of how reorder quantity gets calculated: 3 . So the reorder quantity that is finally displayed on the report output will be 30.reorder quantity would be rounded up to 30 if the profile was set to Yes. The left over quantity is 4. • If a maximum order qty is not specified or if the reorder quantity is less than maximum order quantity. Since the minimum order quantity is 5 we should discard the remaining quantity. which is 30. On the other hand if the remaining qty was say 8. and reorder quantity after all adjustments would still be 38. no further changes are required (the next check is skipped) If a maximum order quantity is specified and reorder quantity exceeds maximum order quantity. the reorder quantity would be 3 * 10 + 4 = 34 Needless to say if no minimum order qty is specified (or if it is 0) then this downward adjustment is not performed. Note: This last check (namely checking to see if the balance met or exceed the minimum order quantity requirement) was introduced in patchset H and does not exist in previous releases. so in this example. or rounded down to 20 if the profile was set to No. we need to make sure we cap each restocking order at the specified maximum. and also ensure that any remaining quantity will satisfy the minimum order quantity requirement. and so on. then the last move order/requisition/work order would be for qty 8. reorder quantity = 34 maximum order qty = 10 minimum order qty = 5 We first create 3 orders for 10 each. The following example will clarify this further: • Say.
75 30 5.19 87.28 15 15 18 18 9 9 18 18 35 15 35 30 30 30 10 10 10 5 21 21 25 25 5 5 10 10 50 50 45 45 9 9 YES NO YES NO 18 18 36 36 5 5 5 5 5 5 0 0 0 -10 -10 -10 -10 10 10 10 10 10 10 10 10 -10 -5 -5 -5 -5 50 50 50 50 20 20 10 10 50 50 50 50 50 45 45 45 45 15 15 10 10 50 60 60 60 60 9 YES NO 40 60 15 YES NO YES NO 15 15 10 10 63 56 5 50 7 YES NO 50 7 YES NO 63 56 60 40 98.19 87.03 5.24 Final Reorder Quantity 45 45 45 50 40 50 40 45 45 45 45 36 36 45 45 40 30 30 30 10 10 10 50 63 63 60 60 63 49 50 40 98.74 8 orders of 10.91 YES NO YES NO 4 .05 and 1 order of 7.05 25 4.Total Available 5 5 5 5 Minimum Quantity 10 10 10 10 Maximum Quantity 50 50 50 50 Estimated Reorder Quantity 45 45 45 45 Fixed Lot Modifier 9 10 10 Reorder Quantity Profile YES NO YES NO YES NO Adjusted Reorder Quantity 45 45 50 40 50 40 45 45 45 45 45 45 Minimum Order Quantity Maximum Order Quantity Notes 1 order of 45 1 order of 45 1 order of 45 1 order of 50 1 order of 40 2 orders of 25 1 order of 25 and 1 order of 15 1 order of 45 1 order of 45 2 orders of 18 each and 1 order of 9 2 orders of 18 each and 1 order of 9 1 order of 36 1 order of 36 1 order of 45 1 order of 45 1 order of 40 1 order of 30 1 order of 30 1 order of 30 1 order of 10 1 order of 10 1 order of 10 1 order of 50 1 order of 63 1 order of 63 1 order of 60 1 order of 50 and 1 order of 10 1 order of 49 and 1 order of 14 1 order of 49 and 1 order of 7 1 order of 50 1 order of 40 9 orders of 10.05 10.5 70 93.28 25 25 5.05 and 1 order of 7.06 20 10.03 49 49 50 50 10.81 45 89.
The LOV for this parameter only shows up if the “Restock” is set to “Yes”. min-max creates replenishment orders (Purchase Orders. 5 . the status changes to ERROR and they need to be purged. This causes problems for customers trying to plan based on orders maintained on an external order management system. For organization level min-max planning. the source type is specified on the Sourcing tab of the Item Subinventories form – INVSDSUB. the source type is specified on the “General Planning” tab of Organization Item form (if this not filled in.Change in Supply calculations The only change is a bug fix to ensure that records in po_requisitions_interface_all that are in an “ERROR” status are not considered as supply. the report checks to see if a source type is specified either at the Subinventory level. Restocking Once the reorder quantity has been determined and if restocking has been turned on (report parameter Restock must be set to Yes). Pick. Min-max inserts records into the PO interface table for creating Purchase orders/requisitions for replenishment. then the report parameter “For Repetitive Item” must be set to something other than “Do Not Restock”. WIP Jobs and Move Orders) to bring inventories up to the desired levels. A future release will correct this issue. or on the Organization Parameters form. Because of a limitation in the way this API currently works. and a subsequent min-max run will detect these records and consider them as supply (provided the report parameter “Include Interface Supply” is set to Yes). for lot-controlled items the value returned includes all inventory including lots that have expired. However if the requisition import program on the PO side fails to process these records successfully. Item-Sourcing” tab). If this is left blank. Change in Demand calculations A bug fix to the min-max report resulted in the removal of MTL_DEMAND_OM_VIEW for sales order demand (please see bug 1636139). Note: If the item is set up as a repetitive planned item (“Repetitive Planning” flag checked on MPS/MRP Planning tab of Organization Item form – INVIDITM). the Organization Item level. the report uses the source type defined on the Organization Parameters form – INVSDOIO – see the Item-Sourcing Detail section of the “ATP. An enhancement request has been logged to restore this functionality (2368275) and documentation will be updated to reflect this change. Requisitions. Determining Order Type and Order Source The source type specified and whether the item is set up as a “Make” item or a “Buy” item determines the type of replenishment order created. Known issue with on hand quantity for lot-controlled item Min-max uses the quantity tree API to determine on hand quantity. For subinventory level min-max planning.
and “Pick Components” must be unchecked (Order Management tab). the material account is specified in the Valuation Accounts section of the Costing Information tab of the Organization Parameters form. Items must also be transactable in order for min-max to create purchase orders. the item is purchasable (“Purchasable” flag on Purchasing tab is checked) • An Inventory AP Accrual account is defined for the organization (see “Receiving Accounts” section of the Other Accounts tab on Organization Parameters form) • An Invoice Price Variance account is defined for the organization (same as above) • An Encumbrance account is defined. Additional considerations for Purchase Orders and Requisitions The following conditions must be satisfied before min-max can insert records into the PO interface table: • For requisitions (source type Inventory). if used on the Organization Item form for an item that is planned at the organization level it will not restock the item). for subinventory level planning. the material account is specified at the subinventory level). then the material account is used (for organization level planning. If the “Inventory Asset Value” flag on the Costing tab of Organization Item form is checked. For Make items min-max inserts a record into the WIP interface table wip_job_schedule_interface for creating a WIP Job or Schedule for manufacturing this item. the expense account is used (for org level planning. min-max will only look at the organization-item or organization level to find the encumbrance account • A charge account is defined. the report flips the flag and treats it as a Buy item instead. or in the Valuation Accounts section of the Costing Information tab of the Organization Parameters form. If the Inventory Asset Value flag is not checked. if the source type is “Supplier” it creates purchase orders and if the source type is “Subinventory” it creates move orders. For subinventory level planning. WIP work orders cannot be generated for subinventory level min-max planning – if a Make item is min-max planned at the subinventory level. for sub level planning it checks the expense account defined at the subinventory level before looking at the orgitem or org level expense account) 6 . the expense account is defined on the Purchasing tab of the Organization Item form.If the item is a Buy item and the source type is set to “Inventory” min-max creates requisitions. requisitions or move orders (“Transactable” flag on Inventory tab of Organization Item form checked). Also. this can be specified at the item-subinventory. For organization level planning. the item must have the “Build in WIP” flag checked (Work In Process tab of Organization Item form). internal orders are enabled for the item (“Internal Orders Enabled” flag on Order Management tab of the Organization Item form is checked) • For purchase orders (source type Supplier). Note that source type “Subinventory” is not valid for organization level planning (it is not a valid option on the Organization Parameters form. organization-item or organization level (org parameter form). subinventory.
Another profile – INV:Debug Level – controls the level of detail. 7 . In a WMS enabled organization min-max would consider quantities packed in LPN in on-hand quantities calculation. A common problem that users (especially novice users) run into is when the report completes without any output. Debugging tips With patchset H much of the code has been moved to the database tier.5 or 9 . From patch set H move orders created by Min-Max planning will be dispatched as tasks. Other than this Min-Max would function same for both Inventory and WMS organizations. set the profile “INV: Debug Trace” to Yes.with 9 being the most detailed. . Min-max writes messages at three levels . and allows you to investigate the issue further. In such cases changing the Item Selection report parameter to “All min-max planned items” will force the report to display the item regardless of available quantity.PL/SQL trace messages are then written to the concurrent request log file. To use this feature. Still most of the contents and principles do apply for Oracle WMS.1.Min-Max and WMS This document has been specifically written keeping Oracle Inventory in mind. This change has made it possible to introduce better trace messages that help in debugging.
Oracle is a registered trademark.S.S. Saju David Copyright © Oracle Corporation 2001 All Rights Reserved Printed in the U.Oracle Warehouse Management System Licence Plate Numbesrs August 2001 Author: Aditya Bhelande. CA 94065 U.506. This document is provided for informational purposes only and the information herein is subject to change without notice.7200 Copyright © Oracle Corporation 1995 All Rights Reserved 8 . Worldwide Inquiries: 415. Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores. Oracle Corporation does not provide any warranties covering and specifically disclaims any liability in connection with this document.7000 Fax 415.506.A.A. Please report any errors herein to Oracle Corporation.
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