Oracle Min-Max Planning

Oracle Inventory lets you manage your inventory levels using any combination of min-max planning, reorder point planning, and a replenishment system for generating orders. Inventory planning involves answering two questions:

• When should you place a new order?
• How much should you order?

Using the Oracle Inventory application, you can set up the following types of inventory replenishment plans:

• Min-max planning
• Reorder-point planning
• Kanban replenishment planning
• Replenishment counting
  

Based on the replenishment method you select, you can perform replenishment planning at the organization or subinventory level. Min-max planning is a method of inventory planning that determines how much to order based on user-defined minimum and maximum inventory levels. User can perform min-max planning at the both the organization and the subinventory levels. To perform organization-level min-max planning for an item, you must specify organization-level minimum and maximum quantities. Min-max planning is typically used to control low value inventory items that do not need great control. To perform subinventory-level min-max planning for an item, you must specify subinventory-level minimum and maximum quantities.

Oracle Inventory performs min-max planning for your items at either the organization level or the subinventory level. Here we will see how to do necessary setups for min-max planning of an item at subinventory level. 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 Items window (or) the Item Subinventories windows:

Item Window(optional) :

• Sourcing type (subinventory)
• Planning method set to Min-max planning

Item Subinventories Window :

• Sourcing type (subinventory)
• Planning method set to Min-max planning

So when the qty available in Stores subinventory is below 100 then it is eligible to create a move order to move the material from FGI subinventory that can make up the qty in stores to 1000.

Check the onhand of the item in Stores subinventory.

Available quantity in Stores subinventory is just 50 which is below 100(min qty set in the subinventory). Now it’s time to trigger replenishment request. In general ‘Min-Max Planning report’ is scheduled periodically. But for the time being, we will see how to run this report manually.

Select

Planning Level => ‘Subinventory’

Subinventory => Stores

Items From  => Min-Max Item

Restock => ‘Yes’ (to create a Move Order as well along with report output)

Click on Submit to launch the request.

Click on ‘View Output’ button to see the report output as shown below.

As the available qty is 50, the reorder quantity is calculated as Max. qty – Onhand qty i.e., 1000 – 50 which is 950 qty.

Now to see the corresponding move order, navigate to Move Orders -> Transact Move Orders form.

Select ‘Move Order Replenishment’ as Type of Move Order and enter ‘Min Max Item’ in the Lines tab.

Click on Find button to see the Move Order Created.

Select the Line and click on ‘Allocate’ Button to allocate the material.

Click on ‘View/Update Allocations’ button to verify the allocation of material.

Click on Transact button to complete the Material replenishment from FGI to Stores.

After replenishment, verify the available quantity in Stores subinventory.