Min Max Planning

Min-Max Planning

Min-Max Planning determines the size and timing of item replenishment orders and creates a purchase order/move order to replenish item stock. The PO/Move order is created based upon the Min-Max Planning Report. Min-Max Planning can be done at either Organization Level or Sub Inventory Level

At Organization level, minimum quantity will be calculated by summing the on hand availability of all sub inventories where as at Sub Inventory level, minimum quantity will be checked in individual sub inventories  

We will see all these setups in detail

Start with creating an item in item master

Navigate to Items > Master Items

Give details as shown below

Give a List Price. A List Price just provides a rough idea about the price of an item

From the above shown form, following can be concluded

1.)   Maximum 1000 items can be present

2.)   Minimum of 100 items needs to be present in inventory

3.)   If there are no items in an inventory then a single requisition order with 2 lines each of 400 will be raised

4.)   If On hand availability is 80 then order will be raised for only 920

Min-Max Planning at Organization Level

Navigate to Planning > Min-Max Planning

Give Planning Level as Organization

Also set Restock value to Yes

If we give this option as No then only a report will be created but interface tables won’t be hit.

Submit the concurrent program, once it completes successfully, Min-Max Planning report will be generated

Now we need to Run Requisition Import program from Purchasing Responsibility. But we need to cross check few points if we want Requisition Import program to complete successfully

1.)   At Item level, list price should be set up

2.)   At Item level, in purchasing tab, expense account should be provided

3.)   In General Planning Tab, Source type must be supplier

4.)   A Location should be assigned to Inventory Organization

5.)   An Employee must be assigned to the login id

6.)   Master Organization should be associated with financial options

In case the Requisition import program ends in error then you can run Requisition Import Exception Report Concurrent program with Delete Exception Parameter as Yes

This program will show you the error

Except last two points, we have ensured that all conditions are met with. We will first close last two points

Assigning employee to the login id

Navigate to Sys Admin > Security > User > Define

Assign an employee as shown below

Associating Master Organization with financial options

Navigate to Purchasing Super User > Setup > Organizations > Financial Options > Supplier – Purchasing

Give the name of your Master Organization

Now run the Requisition Import Concurrent Program from Purchasing Responsibility

This will trigger couple of other concurrent programs as well

In order to check the requisition lines Navigate to Purchasing Super User > Requisitions > Requisition Summary

Give Item Name & you can see that 2 lines are created

Min-Max Planning at Sub Inventory Level

Navigate to Setup > Organizations > Subinventories

Click on Item / Subinventory Tab

Similarly give for 2^nd sub inventory

Now Navigate to Planning > Min-Max Planning

Give Parameters as shown below

Keep the Sub Inventory field as null so that report will run for all sub inventories in a particular organization

Once the request completes normally. Navigate to Purchasing Responsibility & run requisition Import Program

Once all the concurrent requests completes successfully, navigate to Purchasing Super User > Requisitions > Requisition Summary

This is how Min-Max Planning work. We’ll take up approvals & creating Pos from these requisitions separately.