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1/16/2004

Presented by: Suryanarayana Murthy Teegela

VMI

What is Min Max Planning?


 specify minimum and maximum inventory levels for your items.  Minimum = order point.  Maximum = "order up to" .  When the inventory level for an item drops below the minimum, Oracle Inventory suggests a new purchase requisition or internal requisition to bring the balance back up to the maximum.

Min-Max Planning

Purchase Requisition:- for Buy Items Item=Buy Source =Supplier Internal Requisition:- for Items Internal movements Item=Buy Source =Org/Subinventory

Inventory Level = (on-hand quantity) + (quantity on-order)

Where: On-Order Qty = open PO + Approved Requisitions

Min-Max Planning

TIMING OF ORDERS Inventory Level < minimum quantity QUANTITY OF ORDERS Order quantity = Maximum Qty Inventory Level

Performed by running the Min-Max Planning report. Can perform at 2 levels: Org Level : Uses item attribute planning modifiers Subinventory Level : Uses values and parameters set at the item/subinventory level.

Min-Max Planning

SET UP
Item Attributes: Inventory Item Stockable Transactable Purchased Purchasable List Price (if Buy item) Inventory Planning Method: Min-Max Make or Buy: Buy Min-Max Quantity Order Quantity Source: Supplier
Min-Max Planning

Min-Max Planning

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Min-Max Planning

Org Level Setup: In Item General Tab : Enter Inventory Planning Method: Min-Max, Make or Buy: Buy Min-Max Quantity & Order Quantity Source Type : Supplier

Min-Max Planning

Sub-Inventory Level Setup: Values can be set using either the Subinventory Items or the Item/Subinventories windows: In Item General Tab : Enter Inventory Planning Method: Min-Max, Make or Buy: Buy Min-Max Quantity & Order Quantity Source Type : Supplier Go to Org Attributes in Organization Assignement Go to Tools: Item Subinventories Min Max Quantity set at Subinventory level Sourcing : Supplier Note: Sub-Inventory Level setup overrides Org level controls of the item.
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Min-Max Report: Run Min-Max Report with following parameters: Planning Level: Organization / Subinventory Subinventory: Select subinventory if planning level is subinventory Item Selection: Items under min quantity Items: Select range of items Demand & Supply cut-off dates: default (system date) Restock: YES (creates purchase requisition) Leave other parameters as their defaults
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See the out put after report completed with normal As parameter RESTOCK is set to YES inventory creates Purchase Requisition in interface tables. Open the view output of the completed report to see the details of replenishment of the item. Minimum Quantity Maximum Quantity On Hand Quantity Supply Quantity (Approved PRs + Purchased Orders) Available Quantity (On Hand quantity + Supply Quantity) Min Max Order Quantity Reorder Quantity: Max Order quantity Available Quantity
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After PR is created and interfaced in Inventory, Go to Purchasing responsibility run request REQUISITION IMPORT with the following parameters: Import Source: INV (Default) Group By: All (Default) Initiate Approval after ReqImport: Yes / No Yes indicates initiate approval process of sending PR for next level of approval. No Indicates wont initiate approval process User need to send it for approval manually. Note: Request must run from purchasing user responsibility

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After completion of request open the view output window to see the status of the Purchase Requisition. Can see 2 kinds of messages 1) Number of unapproved requisitions created = 1 2) Number of approved requisitions created = 1 Unapproved requisitions will be created if the user who imported requistion does not have sufficient approval limits. Approved requisitions will be created if the user who imported requision does have sufficient approval limits. These approval process will be initiated when Initiate Approval after ReqImport Is set to YES in parameter of Requisition Import request.
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After Requisition import is completed go to Requisition summary window to see the imported requisition.

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Purchase Requistions for re-orders are automatically created by the system on daily basis can be achieved by using Concurrent Request scheduling process. Schedule to run Min-Max Report on daily basis. Submit Min-Max Report from SRS window and go to Schedule and select Run the job Periodically to rerun every 1 day and enable check box of increment date parameter each run and submit the request. Request will be scheduled to run every day with incremental data parameter, subsequently PRs will be created for reorder quantities of items under minimum quantity level.

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After completion of scheduled Min-Max Report, schedule to run Requisition Import concurrent report. Schedule to run Requisition Import on daily basis. Submit Requisition Import Report from SRS window and go to Schedule and select Run the job Periodically to rerun every 1 day and enable check box of increment date parameter each run and submit the request. Request will be scheduled to run every day with incremental data parameter, subsequently PRs will be imported which are created against Min Max Report.

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While scheduling the above reports optionally choose notification option to see the view outputs of the completed requests and their status. Go to Options and select people under Notify the following people, it allows you to select N number of people for those you want to send the view outputs of these completed requests. After completion of the request system will send a notification with URL to see the output of the completed request.

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People under the Notify the following people will receive a notification in their Notification Summary after completion of every request.

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