INV Min-Max Planning Training

Min-Max Planning Training Application:

Inventory

Process:

Min-Max Planning

Objectives:

Setup and Run Min-Max Planning.

Prerequisites:

1. Define Planner 2. Identify Items for Min-Max Planning

Table Of Contents Set Up 3 Organization Min-Max Setup....................................................................................................................3 Subinventory Min-Max Setup 5 Min-Max Planning Report 9 Submit Request........................................................................................................................................11 Reading the Report 12

Min-Max Planning Training

Overview You must decide whether you will use Min-Max planning at the Organization or Subinventory level. If you plan at the Organization level, you will set up the planning attributes for your items in the item master setup. If you plan at the subinventory level, you will set up item/subinventory planning parameters.

Min-Max Planning Training Set Up Inventory Profile Option INV: Min-max Reorder Approval Select Approved or Unapproved to indicate the status of requisitions created by the Min-Max Planning Report. R2I default install sets as Approved. If you would rather use the document approval functionality in Oracle Purchasing, change to Unapproved. Organization Min-Max Setup Navigate to:

Inventory > Items > Organization Items

Choose the General Planning tab To update the attributes of an existing item, click on Query, Enter; then enter the item number in the Item field and press Ctrl-F11. The form will appear as followings:

Min-Max Planning Training

Inventory Planning Method: Planner: Make or Buy: Min-Max Quantity: Order Quantity: Source – Type:

Source – Organization/Subinventory:

Safety Stock – Method: Fixed Lot Multiplier:

Select Min-Max Enter a planner. Planner codes must be defined beforehand Select Make or Buy Enter the Minimum and Maximum inventory quantities Enter the Minimum and Maximum order quantities (Optional) Select from the list of values Supplier: generates purchase requisitions Organization: generates internal requisitions Subinventory: generates move order requisitions If you selected Source Type ‘Inventory’, you must designate an Organization from which to requisition replenishments. If you select Subinventory, you must enter a non-nettable subinventory. Non-MRP Planned Enter the standard package quantity for the item (Optional)

Min-Max Planning Training Subinventory Min-Max Setup The following describe the setup steps needed to setup min-max at the subinventory level. If you intend to do min-max planning at the organization level, you can skip this section. Navigate to

Inventory > Setup > Organizations > Subinventories

Retrieve all of your Subinventories by selecting View >Find All. Oracle will find all defined subinventories as shown below.

Select the subinventory Name for which you want to do min-max planning. Select the Item/Subinventories button. The Item Subinventories form appears showing the Planning tab.

Min-Max Planning Training

Item: Description: Min-Max Planning: Min-Qty: Max Qty: Save your work.

Query and select or input the Item to be setup. The item description will default from the item. Select the Min Max Planning Box. Enter the Minimum Quantity. Enter the Maximum Quantity.

Min-Max Planning Training Navigate to the Order Modifiers tab.

Fixed Lot Multiple: Order Quantity: Minimum: Maximum:

Enter the standard package quantity for the item (Optional) Enter a Minimum order quantity (optional). Enter a Maximum order quantity (optional).

Min-Max Planning Training Change to the Sourcing tab

Type: Organization: Subinventory: Save your work.

Select supplier or inventory or subinventory Select sourcing organization (if type is inventory) Select sourcing subinventory (if type is inventory and Organization entered is the current Organization)

Min-Max Planning Training Min-Max Planning Report Running the-Min-Max Planning Report performs min-max planning. When you select the Min-Max Planning Report a long list of parameters will be listed. Navigate to:

Planning Level: Subinventory: Item Selection:

Category Set: Items To/From:

Planners To/From:

Inventory > Planning >Min-Max Planning

Select Subinventory or Organization Select a Subinventory (Only if Planning Level is Subinventory) Select all min-max planned items. Select all min-max planned items in the subinventory or items with on-hand balance under minimum quantity. Select all items over maximum quantity to see all the items with overstock position. Select an Item Category, by selecting the name of the item category. You can also plan for a range of category values within the specified item category set (Optional) Select any range of items to plan. This allows controlling the planning activity to a specific set of items you are interested in. (Optional) Select any range of planners to plan. This allows controlling the planning activity to a specific set of items you are interested in. (Optional)

Min-Max Planning Training Buyers To/From:

Select any range of buyers to plan. This allows controlling the buying activity to a specific set of items you are interested in. (Optional) Sort by: Select sort by Inventory Item Move the vertical scroll bar down to see the following fields: Demand Cut Off Date: Select a demand cut off date of today’s date. This allows you to use all Sales Order demand from today and all prior dates. Optionally, enter a Demand Cutoff Date Offset. This works as a time fence beyond the demand cut off date. You may want to keep the cut off date as of today but include next weeks’ demand for this planning cycle. Supply Cut Off Date: Select a supply cut off date. For example if you have a supply purchase order due to be received 30 days from today, your min-max planning will not see this order as supply unless you set this date at least 30 days forward from today. Optionally, enter supply cutoff date offset. This works as a time fence beyond the Supply cut off date. You may want to keep the cut off date as of today but include next month’s supply for this planning cycle. Restock: Select Yes or No. Yes causes Oracle to create purchase requisitions or requisitions for Internal Orders, depending on the Source Type selected in setting up the Item. No causes no requisitions to be generated. For review purposes only. For Repetitive Item: Select Create Requisitions to create a requisition for requisition import. Select Create Discrete Jobs to create a file for WIP Mass Load import. Default Deliver To: Select a default location for delivery Net Unreserved Orders: Select Yes or No appropriate to your situation Net WIP Demanded: Select Yes or No appropriate to your situation Include PO Supply: Select Yes or No appropriate to your situation Include WIP Supply: Select Yes or No appropriate to your situation Include Interface Supply: Select Yes or No appropriate to your situation Include Nonnettable Subinventories: Select Yes or No appropriate to your situation Display Format: Select a display format for this report Display Item Description: Select Yes or No appropriate to your situation Click OK to save the selected report parameters. The request form will reappear:

Min-Max Planning Training

Select your print and submission requirements by clicking on Options. You can schedule the report to run periodically and automatically inform the person responsible for it by filling the required data under Schedule and Completion Options. Submit Request If you selected to print then pick up your min-max report for review otherwise review the report on screen.

Min-Max Planning Training Reading the Report •

Total Available = Nettable Quantity On-hand + On Order - Open Demand, where

•

Nettable Quantity On-hand is nettable quantity in the subinventory specified.

• On Order is the sum of open purchase orders, requisitions, and internal orders and shipments scheduled for receipt prior to or on the Supply Cutoff Date. Orders referencing other subinventories, or with no subinventory specified, are not included if the report is run for a subinventory. •

Open Demand is the sum of open sales orders scheduled to ship prior to or on the

• Demand Cutoff Date. Sales order demand referencing other subinventories, or without a specified subinventory, are not included if the report is run for a subinventory. •

If Total Available < Minimum Quantity, suggest a new order, where

•

Minimum Quantity is the value for the Min-Max Minimum Quantity item attribute.

• Order Quantity = Maximum Quantity - Total Available, adjusted for order quantity modifiers: • Oracle Inventory revises the order quantity if necessary for the quantity to be a multiple of the fixed lot size multiplier. • The order quantity must be greater than or equal to the minimum quantity, or Oracle Inventory revises the quantity upward to the minimum. •

The order quantity must be less than or equal to the maximum quantity, or Oracle Inventory revises the quantity down to the maximum.