MIN MAX PLANNING

PURPOSE

This document is meant to assist in the successful completion of the Min-Max Planning Report

SCOPE & APPLICATION

The intended use of this document is for the casual user beginning to use the Min-Max Planning feature
of Oracle Inventory.

MIN MAX PLANNING & REPORT

Min-Max planning is a type of order point replenishment system where the minimum is the order point,
and the maximum is the "order up to" inventory level. The order quantity is variable and is the result of
maximum minus available and on-order inventory. An order is recommended when the sum of the
available and the on-order inventory is at or below the minimum.

Oracle Inventory enables you to perform min-max planning at two levels:

A. Organization

B. Sub inventory

To perform organization-level min-max planning for an item, you must specify organization-level
minimum and maximum quantities. To perform sub inventory-level min-max planning for an item, you
must specify sub inventory-level min and max quantities.

We will consider Min-Max planning at organization-level here for IR MEA deployment.

TIMING OF ORDERS

Order when the following is true:

(on-hand quantity - demand) + (quantity on-order) < minimum quantity

QUANTITY ON ORDER

Quantity on order is the sum of purchase order quantities, requisition quantities,

and in transit shipments. It also includes WIP jobs as supply at the organization level.

Quantity on order represents supplies that you have not received in your organization.

QUANTITY OF ORDERS

Order quantity = (Maximum Qty) - [(on-hand quantity) + (quantity on order)]

Navigate as System Administrator: Profile ‘System place cursor in the Profile field and type in 'INV:
MIN%'.

You can specify a system-level min-max reorder approval status. INV: MIN-MAX REORDER APPROVAL.

This option allows you to create requisitions as either approved or unapproved when you run the Min-
Max report.

If the profile is set at Pre-Approved, then it will create approved requisitions on completion on the Min-
Max Planning. (In your case it is already set as Pre-Approved).

ORGANIZATION LEVEL PLANNING.

When your organization do 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.

Inventory balances, purchase orders and WIP jobs are considered sources of supply.

Purchase requisitions for buy items and WIP unreleased jobs for make items for the replenishment
quantities can be optionally created. These in turn become purchase orders or internal orders and the
unreleased jobs become jobs for the required items.

Give a List Price. A List Price just provides a rough idea about the price of an item.
Set Up

Min-max planning begins by properly setting the min-max item attributes.

Navigation: Items-->Master Items or Organization Items. (In your case it is Organization Item)

Choose the Inventory Attribute Group.

Inventory Item: This attribute must be checked for items which are stockable

and transactable and for min-max planned items which are built in Work in Process.

Stockable: Check this box if you are checking the Inventory Item attribute.

The Transactable attribute will also be check as this attribute is dependent

upon the Stockable attribute.

Choose the Costing Attribute Group.

Costing enabled: This attribute allows item cost reporting and tracking of the value for this item.

Inventory Asset Value: This attribute indicates if this item is maintained as an asset

in inventory. (Turning this option off indicates an expense item.)

Choose the Purchasing Attribute Group.

Purchased: Indicates whether to purchase and receive an item. This option will allow

Purchase Requisitions to be generated for items sourced from Suppliers.

Purchasable: Indicated whether an item can be placed on a purchase order. This

attribute can only be set when the Purchased attribute is on.

Choose the General Planning Attribute Group.

Inventory Planning Method: Set to Min-Max

Min-Max Minimum Quantity: Enter the user defined quantity minimum for min-max planning.

When min-max planning is used the Min-Max Planning Report will suggest a new order when

quantity drops to this minimum.

Min-Max Maximum Quantity: Enter the user defined quantity maximum for min-max planning.

When min-max planning is used the Min-Max Planning Report will suggest a new order that

brings on-hand quantity up to this maximum.

This defines an order quantity below which it is unprofitable to build or buy the item.

Maximum Order Quantity (Optional): Enter the maximum order quantity or repetitive rate.

This defines an order quantity above which there is insufficient capacity to build or store

the item.

Source Type:

A. Inventory - Fills requisition requests by creating internal requisitions that become

internal sales orders, to pull stock from existing inventory.

B. Supplier - Fills requisition requests by creating purchase requisitions that become

purchase orders, procuring the item from a supplier. (This is required in your case as you will be
raising PO to replenish).

Source Organization: This attribute is controlled at the Organization Level Only. Enter

the organization from which an internal requisition draws the item. This applies only when

Inventory is the Source Type.

Source Sub inventory: This attribute is controlled at the Organization Level Only. Enter

the sub inventory within the source organization from which an internal requisition draws

the item. This applies only when Inventory is the Source Type and only when there is a

Source Organization entered.

Make or Buy: Select the option that applies to items with Inventory Item set to "yes".

The Purchasable attribute must be set to "yes" to create purchase requisitions and purchase orders.

Fixed Lot Multiplier (Optional): Enter the fixed lot multiple quantity or repetitive rate to

further control order quantity.

Note: Safety Stock Method: MUST be set to "Non-MRP Planned".

Choose Work in Process Attribute Group.

Build in WIP: Check this attribute if it is a "Make" item as well as an Inventory Item, and to

have Min-Max generate unreleased jobs. Repetitive plans cannot be generated for repetitive items;

you have the option of generating requisitions, unplanned jobs or a report only at the Organization

level.
Please complete the following set ups also to run the Min-Max plan successfully.

In the Item level the source need to be mentioned in the source and the quantity.

Go to Tools --> Item Sub inventory then you will be prompted to below screen.

Screen 1

Please mention quantities Min and Max. Sub inventory is FGD.

Please go to sourcing Tab and select supplier.

Once done save the record.

Please run the Min Max plan.

Navigate to View  Reports  Submit New Request  Min Max Planning

Give Planning level as Organization

Also set Re-stock Value to Yes (else it will not hit the Material Transaction).

Formula for Re Order quantity that will be generated by the Report.

Re-Order quantity = (Maximum Qty) - [(on-hand quantity) + (quantity on order)]

Now once this check is complete we can run the Requisition import program (already
scheduled).
Once the report complets successfully. It will give this message.

Please go to XXX Procurement Admininstrator.

Navigate  Purchasing  Requisition  Requisition summary