PURPOSE
This document is meant to assist in the successful completion of the Min-Max
Planning Report using Oracle Inventory release 10SC (Smart Client).
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. Subinventory
To perform organization-level min-max planning for an item, you must specify
organization-level minimum and maximum quantities. To perform subinventory-level
min-max planning for an item, you must specify subinventory-level min and max
quantities.
Requisitions may be generated to request stock for items for which the on-hand
quantity plus the on-order quantity is less than the min-max minimum amount.
Requisition can be stocked from another internal organization or from an outside
supplier, based on item sourcing rules you define at the item-subinventory,
subinventory, item or organization level.
You can define a default item source at the organization, subinventory, or item
levels. Oracle Inventory uses the information from the lowest level to determine the
source from which to requisition the item. The ascending hierarchy is 1) Item
in a subinventory, 2) Source in a subinventory, 3) Item in an organization,
and 4) Source in an organization.
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 intransit shipments. It also includes WIP jobs as supply at the organization level.
Quantity on order represents supplies that you have not received in you organization.
QUANTITY OF ORDERS
Order quantity = (Maximum Qty) - [(on-hand quantity) + (quantity on order)]
PROFILE OPTION
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.
ORGANIZATION LEVEL PLANNING.
When you 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.
Set Up.
Min-max planning begins by properly setting the min-max item attributes.
Navigation: Items-->Master Items or Organization Items.
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.
Minimum Order Quantity (Optional): Enter the minimum order quantity or repetitive
rate.
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.
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 Subinventory: This attribute is controlled at the Organization Level Only.
Enter
the subinventory 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.
SUBINVENTORY LEVEL MIN-MAX PLANNING
Oracle Inventory takes into consideration inventory balances, purchase orders, internal
order supply and
optionally, sales order demand for a single subinventory only. Rather than using item
attributes for planning,
Oracle Inventory used values and parameters set at the item/subinventory level. The
following values can be
established using either the Define Subinventory/Item Information form or the Define
Item/Subinventory
Information form:
Planning Region
Min-Max Minimum Quantity
Min-Max Maximum Quantity
Planning Method set to Min-Max Planning
Order Modifier Region
Fixed Lot Multiple (Optional)
Maximum Order Quantity (Optional)
Minimum Order Quantity (Optional)
Sourcing Region
Item Sourcing Details :
Sourcing type (Vendor or Inventory)
Sourcing Organization (if type is Inventory)
Sourcing Subinventory (if type is Inventory - optional)
Setup-->Organizations-->Subinventories. Query a Subinventory and then click on
Item/Subinventory button on
the bottom of the form.
Alternative way to access this: Items--> Master (Organization) Items then either query an
item or define a
new item and click on "Special" Item/Subinventories.
MIN-MAX PLANNING REPORT CALCULATIONS.
In addition to the planning level option (organization or subinventory), Oracle Inventory
offers the option to Net
Demand when calculating availability. You also specify a Demand Cutoff Date and a
Supply Cutoff Date.
Net Demand = "Yes" to any of the Net Demand Report Options
Nettable Quantity On-hand is either the sum of the quantities on hand for the item across
all nettable Subinventories
within the organization or the nettable quantity in the subinventory specified (depending
on the planning level).
Non-nettable quantities may be optionally included.
7 Total Available = Nettable Quantity On-Hand + On-order - Open Demand where:
Nettable Quantity On-hand is the sum of the quantities on hand for the item across all
nettable Subinventories within
the organization or the nettable quantity in the subinventory specified (depending on the
planning level).
Non-nettable quantities may be optionally included.
On Order is the sum of open purchase orders, requisitions, internal orders, work in
process jobs and shipments scheduled
for receipt prior to or on the Supply Cutoff date. If using the Subinventory planning level,
orders referencing other
subinventories, or with no subinventory referenced, are not included.
Open Demand is the sum of open sales orders, reserved or unreserved, scheduled to ship
prior to or on the Demand Cutoff Date
and WIP component demand scheduled for issue on or before the Demand Cutoff Date. If
using the subinventory planning level,
sales order demand referencing other subinventories, or with no subinventory referenced,
are not included.
7 If Total Available < Minimum Quantity then Min-Max Planning Report will suggest a
new order where:
Minimum Quantity is the value for the Min-Max Minimum Quantity item attribute. Or, at
the Subinventory planning level minimum
quantity is the value for the Min-Max Quantity set at the item/subinventory level.
7 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 the
quantity will be revised upward to the minimum.
The order quantity must be less than or equal to the maximum quantity or the quantity
will be revised downward to the maximum.
Net Demand = "No" to the Net Demand Report Options:
7 Total Available = Nettable Quantity On-Hand + On-Order (note that Open Demand is
not considered here) where:
Nettable Quantity On-hand is the sum of the quantities on hand for the item across
all nettable Subinventories within the organization
or the nettable quantity in the subinventory specified (depending on the planning
level). Non-nettable quantities may be optionally included.
On Order is the sum of open purchase orders, requisitions, internal orders, work
in process jobs and shipments scheduled for receipt prior
to or on the Supply Cutoff date. If using the Subinventory planning level, orders
referencing other subinventories, or with no subinventory
referenced, are not included.
7 If Total Available < Minimum Quantity then Min-Max Planning Report will suggest a
new order where:
Minimum Quantity is the value for the Min-Max Minimum Quantity item attribute. Or,
at the Subinventory planning level minimum quantity is
the value for the Min-Max Quantity set at the item/subinventory level.
7 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 the
quantity will be revised upward to the minimum.
The order quantity must be less than or equal to the maximum quantity or the quantity
will be revised downward to the maximum.
GENERATING REQUISITIONS
Requisitions can be optionally generated when the Min-Max Report is run. A location
must be specified to serve as the default delivery
location on the requisitions. In addition, the Restock parameter must be set to "Yes".
Oracle Inventory creates purchase requisitions
when the attribute Source Type is set to Supplier, and creates requisitions for Internal
Orders when the attribute Source Type is set to Inventory.
The Source Organization attribute is used to determine the organization from which the
internal requisition sources the item.
Once the report is generated, a row can be found for each item generating a requisition
in the PO_REQUISITIONS_INTERFACE table.
At this point Oracle Inventory has completed the Min-Max process once rows are found
in this table.
A requisition or purchase order number is not generated until the Requisition Import
process is run from Oracle Purchasing.
Change responsibilities to an Oracle Purchasing responsibility with enough rights
to run the Import Process. Navigate to Reports-->Run,
place cursor in the Name field and choose 'Requisition Import' from the list of values.
In the field Import Source there will be a choice
of INV in the list of values indicating that there are requisitions to be imported
from Inventory. Import these requisitions and
process as any ordinary requisition.
REQUESTING THE MIN-MAX REPORT IN ORACLE INVENTORY
1. Navigate to Reports-->Planning and choose Min-Max Planning from the list of values
in the Name field.
2. The parameters window will appear.
3. Indicate whether the planning level is set for the entire organization or a specific
subinventory. If you select Subinventory,
enter the name of the subinventory. At the Subinventory level, the report cannot
generate jobs and does not consider Work in Process
jobs as supply or Work in Process components as demand.
4. Indicate the type of item to include on the report. The choices are Items Under
Minimum Quantity, Items Over Maximum
Quantity, or All Min-Max Planned Items.
5. Enter the sort criteria for the report. Choices are: Inventory item, Category, Planner or
Buyer. If you choose Category,
enter the category set.
6. Enter the demand cutoff date. The report includes demand on or before this date. If you
do not check Net Demand this date
is for display purposes only.
7. Enter the demand cutoff date offset to supplement the demand cutoff date by any
specified number of days. This is optional
and will default to zero.
8. Enter the supply cutoff date. The calculation includes open supply orders on or before
this date.
9. Enter the supply cutoff date offset to supplement the supply cutoff date by any
specified number of days. This is optional
and will default to zero.
10. Indicate whether to create requisitions by setting the Restock to "Yes". If the Planning
Level is set to Organization,
the report generates requisitions or jobs according to the item's Make/Buy flag. If the
Planning Level is set to Subinventory
the report generates only requisitions.
11. For Repetitive Item is used only is conjunction with Organization Planning Level,
choose one of the following options:
Create Requisitions, Create Discrete Jobs, Report Only.
12. Enter the Default Delivery location.
13. Indicate whether to net unreserved orders.
14. indicate whether to net reserved orders.
15. Indicate whether to net WIP demand - this cannot be set to "Yes" if Planning Level is
set to Subinventory.
16. Indicate whether to include PO supply.
17. Indicate whether to include supply residing in Oracle Inventory interfaces.
18. Indicate whether to include subinventories set to non-nettable.
19. Display Format - choose one of the following:
Display all information.
Report displays all columns
Don't display supply/demand details.
Does not display Min Order Qty, Max Order
Qty or Multiple Order Qty columns.
Don't display order constraints
Does not display On-Hand qty column.
20. Indicate whether to display item information.
OTHER
The Oracle Inventory Min-Max Planning Report short name is [Link]. It also
has a corresponding [Link] file
which is a library of linked programs (ie. do_restock) called when the report is run. It
important that the .pll file
be the correct version for the .rdf file being run. For information on the latest versions
please contact Oracle Support
Services.
SUMMARY
The Oracle Inventory Min-Max Planning Report is used to show planning information for
items at either the Organization or
Subinventory level. You can specify a variety of selection criteria and parameters and the
report can also generate
purchase or internal requisitions for Buy items or Work In Process unreleased jobs for
Make items.