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Introduction

This document is intended to cover Min-Max planning solution design and the related application
setups.
This document explains the various steps in executing the Min-Max Planning in any inventory
organization. This mainly includes the required application setups and the systematic processes
to be executed for planning/replenishment of the inventory.

Concepts:
1. For automatic generation of BPA release, when Man-max planning report is executed
with Restock = Yes, the BPA, ASL and sourcing rule along with sourcing rule assignment
is assumed to be in place.
2. For automatic generation of internal requisitions, when Man-max planning report is
executed with Restock = Yes, the sourcing rule along with sourcing rule assignment is
assumed to be in place.
3. The demand, as assumed by the Min-Max Planning, is sales order/internal order demand
only. Forecast demand is not considered by Min-Max Planning.
4. The Need-by-date (Promise date) on the requisition and hence on the BPA release is the
system date, the day of the report execution, irrespective of when the on-hand + on-order
goes below the minimum specified. It does not consider the Planning Time Fence that is
considered by MRP. It considers the pre-processing lead time to adjust the need-by-date
and hence the promise date. Thus if pre-processing lead time is specified, need-by-date
(promise date) = system date + pre-processing lead time.
5. Fixed Lot Multiplier can be used to get the Min-Max output in multiples of a specified
quantity.

Key Process Steps


1. Min-Max Planning logic and terms
Min-max decides the reordering quantity based on the On-hand Quantity, On-order Quantity, Open Demand, MinMax Minimum Qty and Min-Max Maximum Qty.
Total Available = (Nettable Quantity On-Hand) + (On-order Qty) - (Open Demand)
Nettable Quantity On-hand -The sum of the quantities on hand for the item across all nettable subinventories
within the organization or the nettable quantity in the subinventory specified (depending on the planning level which
can be organization or subinventory). Non-nettable quantities may be optionally included.
On Order -The sum of open purchase orders, requisitions, internal orders, work in process jobs and shipments
scheduled for receipt prior to or on the Supply Cutoff date.
Net Unreserved Demand- Includes the Unreserved sales Order demand which are scheduled to be shipped on
or before the Demand Cut-off date and WIP component Demand scheduled for issue on or before the Demand
Cut Off date
Net Reserved Demand- Includes the Reserved sales Order demand which are scheduled to be shipped on or
before the Demand Cut-off date and WIP component Demand scheduled for issue on or before the Demand Cut
Off date
Demand/Supply Cut Off date- Indicates the date on or before the Demand/Supply Cut Off date when the
Demand or the supply will be considered in the Min-Max calculation.
Restock
(A) If Restock is set to Yes and Planning level is set to Organization Min-Max report generates
purchase requisitions or jobs according to items Make/Buy flag
(B) If Restock is set to Yes and Planning level is set to Subinventory Min-Max report generates only
requisitions.
(C) If Restock is set to No and Planning level is set to Organization Min-Max report does not generate
any purchase requisition or discrete job.
Supply Quantity- Include open purchase orders, purchase requisitions which are in Approved Status, Internal
purchase requisitions and a discrete jobs which are in Released status.
Demand Quantity- Includes all the Reserved/Unreserved sales order, WIP component demand and account
issue move orders.

2. Basic Min-Max Planning setups


Item attributes: Inventory Planning Method = Min-Max for the item. Set the Min-Max Quantity for the item along
with the Fixed Lot Multiplier.

At the same time, the Planning Method on MRP/MPP tab should be Not planned in order to MRP not consider
this item for planning.

In order to adjust the need-by-date (promise date) on the BPA release, the preprocessing lead time needs to be
populated.

3. Executing the Min-Max Planning process


N: INV Superuser > Reports > Planning {MEM}
(Single Request) Name = Min-max planning report
OR
N: INV Superuser > Planning > Min-Max Planning

4. Running the Requisition Import


N: PUR Superuser > Requests
Submit a New Request (Single Request) Name = Requisition Import

Both # 3 & 4 can be combined to run as a request set and can be scheduled.

5. Sample report output

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