Sunday, January 11, 2009

Which are different Inventory Planning methods?

Which are different Inventory Planning methods?

There are 5 inventory Planning methods as mentioned below:
1) Subinventory Replenishment planning
2) Min-max planning
3) Re-order point planning
4) Kanban planning
5) Periodic Automatic Replenishment(PAR)

Subinventory Replenishment planning

Oracle Inventory provides additional methods for planning and replenishing inventories. Even if you are not maintaining perpetual on-hand balances in non-tracked subinventories, for example-you can use the replenishment counting system to plan your inventories. This may be ideal for replenishing free stock items that you store on the production floor, or office supplies kept in departmental cabinets. Oracle Inventory even provides an open interface for loading replenishment count data collected electronically, such as with a hand held bar code reader.

Replenishment Counting Tracked Subinventories
In some situations, you may want to do your own planning and use Oracle Inventory
to create your internal requisitions. When using the replenishment system in this
manner, you provide the system with one of the following pieces of information (in
addition to the item and subinventory):
• Order quantity. You specify the quantity that is to be ordered.
• Order maximum quantity. Oracle Inventory orders the min-max maximum quantity.
You can manually enter this information in the Replenishment Counts window or through an external interface, using the replenishment interface tables

Replenishment Counting Non-Tracked Subinventories
Planning and replenishment of non-quantity-tracked subinventories is different because Oracle Inventory cannot use perpetual system quantities. As you issue items from a subinventory without formal issuing procedures, it is necessary to take inventory of non-tracked subinventories to record item usage and determine reorder necessity.

In order to determine when and how much to replenish, you periodically physically count the items in non-tracked sub inventory. Here also you can enter the count details through batch load transaction such as bar code reader or manually by navigation. Inventory module permits on hand quantity as an additional replenishment information type for non-tracked subinventories.

Planning Levels
You can only use the replenishment counting system at the subinventory level. To use
replenishment counting, you must set up item-subinventory relationships using the Item Subinventories or Subinventory Items windows.

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