ORACLE INVENTORY PLANNING METHODS
Oracle Inventory provides different planning methods
1. Min Max Planning
2. Reorder Point Planning
3. Kanban Replenishment
4. Replenishment Count
In this Section we will discuss only Min Max Planning Method, Rest we will cover in next blog
Min Max Planning
Defination
Min-Max planning is used to maintain inventory levels for all items or selected items. In min-max planning, we specify minimum and maximum inventory levels for items. When the inventory level for an item drops below the minimum, Oracle Inventory suggests a new requisition or job to bring the balance back up to the maximum.
Min Max Planning can be setup at Inventory Organization level and Subinventory level.
Inventory Organization level
When min-max plan is done 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 as demand.
Setup
For setting up min-max planning at the organization level, set the item attributes used by min-max planning. Set the Inventory Planning Method item attribute to Min-max planning.
Enter minimum and maximum levels used in the calculation using the Min-Max Minimum Quantity and the Min-Max Maximum Quantity item attributes
Set the Make or Buy flag to Make to optionally generate unreleased jobs and to Buy to optionally generate requisitions.
Min-max planning is performed by running the Min-Max Planning Report. By selecting organization level planning, we run min-max planning for organization.
When we run the Min-max planning report, we can have Oracle Inventory create requisitions for Buy items and unreleased jobs for Make items by answering Yes to Restock
Subinventory level Min Max Planning
When min-max planning is done 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.
Setup
Setup Minimum and Maximum quantity at subinventory level
Select Source type
1. Supplier
2. Inventory
3. Subinventory
