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System
Min-Max Replenishment
An Oracle White Paper
June 2002
Oracle Warehouse Management System
Min-Max Replenishment
INTRODUCTION
The purpose of this white paper is to provide a more detailed description of the
working of Inventory’s Min-Max Planning report than is done in the Inventory User
Guide. It is assumed that the reader is already familiar with the material covered in
the User Guide’s section on Min-Max Planning. We start with the profile options
used by the report, then describe how reorder quantity gets calculated and finally
discuss the restocking process where min-max generates Purchase Orders,
Requisitions, WIP Jobs and Move Orders for replenishment.
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Reorder Quantity Calculation
Reorder
Quantity?
YES NO
How much to
Reorder???
Reorder Quantity =
Maximum Stockable
Fixed Lot Multiple
Quantity - Total Available
Defined?
YES NO
After arriving at an initial estimate for the reorder quantity (Maximum quantity –
Total available, where total available = on hand + supply - demand), it goes through
the following additional checks in the order in which they are listed:
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reorder quantity would be rounded up to 30 if the profile was set to Yes,
or rounded down to 20 if the profile was set to No.
Say,
reorder quantity = 34
maximum order qty = 10
minimum order qty = 5
We first create 3 orders for 10 each, which is 30. The left over quantity is 4. Since
the minimum order quantity is 5 we should discard the remaining quantity. So the
reorder quantity that is finally displayed on the report output will be 30. On the
other hand if the remaining qty was say 8, then the last move order/requisition/work
order would be for qty 8, and reorder quantity after all adjustments would still be 38,
and so on.
Note: This last check (namely checking to see if the balance met or exceed
the minimum order quantity requirement) was introduced in patchset H and
does not exist in previous releases, so in this example, the reorder quantity
would be 3 * 10 + 4 = 34
The following table has examples of how reorder quantity gets calculated:
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Estimated Reorder Adjusted Minimum Maximum Final
Total Minimum Maximum Fixed Lot
Reorder Quantity Reorder Order Order Notes Reorder
Available Quantity Quantity Modifier
Quantity Profile Quantity Quantity Quantity Quantity
5 10 50 45 1 order of 45 45
5 10 50 45 9 YES 45 1 order of 45 45
NO 45 1 order of 45 45
5 10 50 45 10 YES 50 1 order of 50 50
NO 40 1 order of 40 40
5 10 50 45 10 YES 50 15 25 2 orders of 25 50
1 order of 25 and 1 order of
NO 40 15 25 40
15
5 10 50 45 9 YES 45 18 1 order of 45 45
NO 45 18 1 order of 45 45
2 orders of 18 each and 1
5 10 50 45 9 YES 45 9 18 45
order of 9
2 orders of 18 each and 1
NO 45 9 18 45
order of 9
5 10 50 45 9 YES 45 18 36 1 order of 36 36
NO 45 18 36 1 order of 36 36
5 10 50 45 35 1 order of 45 45
5 10 50 45 15 1 order of 45 45
5 10 50 45 35 40 1 order of 40 40
5 10 20 15 30 60 1 order of 30 30
5 10 20 15 15 YES 15 30 1 order of 30 30
NO 15 30 1 order of 30 30
0 10 10 10 10 1 order of 10 10
0 10 10 10 5 YES 10 10 1 order of 10 10
NO 10 10 1 order of 10 10
0 -10 50 50 5 50 1 order of 50 50
-10 -5 50 60 7 YES 63 21 1 order of 63 63
NO 56 21 1 order of 63 63
-10 -5 50 60 1 order of 60 60
1 order of 50 and 1 order of
-10 -5 50 60 50 60
10
1 order of 49 and 1 order of
-10 -5 50 60 7 YES 63 49 63
14
1 order of 49 and 1 order of
NO 56 49 49
7
25 30 70 45 20 YES 60 25 50 1 order of 50 50
NO 40 25 50 1 order of 40 40
9 orders of 10.05 and 1
4.75 5.5 93.81 89.06 10.91 YES 98.19 5.03 10.05 98.19
order of 7.74
8 orders of 10.05 and 1
NO 87.28 5.03 10.05 87.28
order of 7.24
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Change in Supply calculations
The only change is a bug fix to ensure that records in
po_requisitions_interface_all that are in an “ERROR” status are
not considered as supply. Min-max inserts records into the PO interface table for
creating Purchase orders/requisitions for replenishment, and a subsequent min-max
run will detect these records and consider them as supply (provided the report
parameter “Include Interface Supply” is set to Yes). However if the
requisition import program on the PO side fails to process these records successfully,
the status changes to ERROR and they need to be purged.
Restocking
Once the reorder quantity has been determined and if restocking has been turned on
(report parameter Restock must be set to Yes), min-max creates replenishment
orders (Purchase Orders, Requisitions, WIP Jobs and Move Orders) to bring
inventories up to the desired levels.
For subinventory level min-max planning, the source type is specified on the
Sourcing tab of the Item Subinventories form – INVSDSUB. If this is left blank, the
report checks to see if a source type is specified either at the Subinventory level, the
Organization Item level, or on the Organization Parameters form.
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If the item is a Buy item and the source type is set to “Inventory” min-max creates
requisitions, if the source type is “Supplier” it creates purchase orders and if the
source type is “Subinventory” it creates move orders. Note that source type
“Subinventory” is not valid for organization level planning (it is not a valid option
on the Organization Parameters form; if used on the Organization Item form for an
item that is planned at the organization level it will not restock the item). Items must
also be transactable in order for min-max to create purchase orders, requisitions or
move orders (“Transactable” flag on Inventory tab of Organization Item form
checked).
For Make items min-max inserts a record into the WIP interface table
wip_job_schedule_interface for creating a WIP Job or Schedule for
manufacturing this item. WIP work orders cannot be generated for subinventory
level min-max planning – if a Make item is min-max planned at the subinventory
level, the report flips the flag and treats it as a Buy item instead. Also, the item must
have the “Build in WIP” flag checked (Work In Process tab of Organization Item
form), and “Pick Components” must be unchecked (Order Management tab).
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Min-Max and WMS
This document has been specifically written keeping Oracle Inventory in mind. Still
most of the contents and principles do apply for Oracle WMS. In a WMS enabled
organization min-max would consider quantities packed in LPN in on-hand
quantities calculation. From patch set H move orders created by Min-Max planning
will be dispatched as tasks. Other than this Min-Max would function same for both
Inventory and WMS organizations.
Debugging tips
With patchset H much of the code has been moved to the database tier. This change
has made it possible to introduce better trace messages that help in debugging. To
use this feature, set the profile “INV: Debug Trace” to Yes. - PL/SQL trace
messages are then written to the concurrent request log file. Another profile –
INV:Debug Level – controls the level of detail. Min-max writes messages at three
levels - 1,5 or 9 - with 9 being the most detailed.
A common problem that users (especially novice users) run into is when the report
completes without any output. In such cases changing the Item Selection report
parameter to “All min-max planned items” will force the report to display the item
regardless of available quantity, and allows you to investigate the issue further.
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Oracle Warehouse Management System Licence Plate Numbesrs
August 2001
Author: Aditya Bhelande, Saju David
Copyright © Oracle Corporation 2001
All Rights Reserved Printed in the U.S.A.
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