Min-Max Planning determines the size and timing of item replenishment orders and creates a purchase order/move order to replenish items stock. This purchase order/move order to restock items is created based upon the Min-Max Planning report. The planning report provides the item and quantity to be ordered or manufactured. Items are required to be restocked when the quantity of an item in stock is fewer than the quantity required by the inventory organization. It maintains inventory stock levels for all of your items or selected items. With min-max planning, you specify minimum and maximum inventory levels for your items and minimum and maximum order quantity. You can also specify fixed lot multiplier. When the inventory level for an item (on-hand quantities plus quantities on order) goes down below the minimum quantity prescribed by you, Oracle Inventory module suggests a new purchase requisition, internal requisition, move order, or a manufacturing job to bring the balance back up to the maximum quantity mentioned by you. Inventory module performs min-max planning for your items at either the organization level or the subinventory level. You can choose this level when you run min- max planning report.
When you min-max plan at the organization level, you can optionally include the following transactions as demand quantity in the min-max planning calculation
a) unreserved sales orders
b) reserved sales orders
c) account issue move orders
d) work in process component requirements
This creates Purchase requisitions or internal requisitions for buy items and WIP unreleased jobs for make items for the suggested replenishment quantities. You can then turn these requisitions into purchase orders or internal orders and the unreleased jobs into released jobs for the required items. If a revision is specified when a purchase order requisition is created for revision controlled items, it is controlled by setting of the profile option INV: Purchasing by Revision
When you min-max plan at the subinventory level, you can optionally include only unreserved sales orders, reserved sales orders, account issue move orders, and subinventory transfer move orders as demand quantity in the min-max planning calculation. Subinventory level planning cannot generate jobs for WIP and does not consider WIP jobs as supply or WIP components as demand. Purchase requisitions, internal requisitions, or pre-approved move orders for the suggested replenishment quantities can be optionally created. You can then turn requisitions into purchase orders or internal orders for the required items. Sourcing Rule does not work with Min-Max Planning.