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    Min Max Replenishment

    Uploaded by

    Jaya Krishna
    The document discusses the Min Max replenishment technique used to maintain stock levels between a minimum and maximum for items. It describes the steps to set up Min Max parameters for an item in the item master and subinventory, including running a Min Max planning report to trigger the creation of incomplete move orders if stock levels dip below minimum. Changing approval profiles can result in pre-approved move orders instead of incomplete ones. Organization-level replenishment uses the same process but reads parameters from the organization item record rather than the master item.

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    Min Max Replenishment

    Uploaded by

    Jaya Krishna
    135 views18 pages
    The document discusses the Min Max replenishment technique used to maintain stock levels between a minimum and maximum for items. It describes the steps to set up Min Max parameters for an item in the item master and subinventory, including running a Min Max planning report to trigger the creation of incomplete move orders if stock levels dip below minimum. Changing approval profiles can result in pre-approved move orders instead of incomplete ones. Organization-level replenishment uses the same process but reads parameters from the organization item record rather than the master item.

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    Min Max Replenishment

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    The document discusses the Min Max replenishment technique used to maintain stock levels between a minimum and maximum for items. It describes the steps to set up Min Max parameters for an item in the item master and subinventory, including running a Min Max planning report to trigger the creation of incomplete move orders if stock levels dip below minimum. Changing approval profiles can result in pre-approved move orders instead of incomplete ones. Organization-level replenishment uses the same process but reads parameters from the organization item record rather than the master item.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    135 views18 pages

    Min Max Replenishment

    Uploaded by

    Jaya Krishna
    The document discusses the Min Max replenishment technique used to maintain stock levels between a minimum and maximum for items. It describes the steps to set up Min Max parameters for an item in the item master and subinventory, including running a Min Max planning report to trigger the creation of incomplete move orders if stock levels dip below minimum. Changing approval profiles can result in pre-approved move orders instead of incomplete ones. Organization-level replenishment uses the same process but reads parameters from the organization item record rather than the master item.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 18

    To maintain optimal stock in Inventory, there are 5 techniques to replenish.

    This aids in Just In Time concept, so that the availability of Raw


    material Stock is always assured for production. These techniques ensures that just sufficient material is ordered so that the stock level does not
    dip below the safety stock level limit and the production is unhampered even during external disturbances ( like rail or road strike, torrential rain
    cutting vehicular movements, Tsunami, Earth Quake, etc.,).

    The techniques used are 1) Min Max Planning 2) Re-Order Point Planning 3) Kanban Replenishment 4) Replenishment Counting and 5) Periodic
    Automatic Replenishment

    We will discuss Min Max Replenishment.

    The stock level of an item has to be maintained between a minimum and maximum level. This technique is more suitable for main stores were
    large space is available for storage. Items having long lead time for procurement needs rep. under this category.

    Steps for creating Min Max :


    Create an item in Item Master. Give a list price, as, if you mention the replenishment source as
    Supplier, the system will send the rep. requirement to the interface
    tables of purchasing. Req Import will fail if the item do not have a list
    price and the data will be shifted from the interface tables to error
    tables.
    Assign the item to M1 org. Create a Sub Inventory where we want to maintain the stock between
    a min and max level for this item.
    Set the MM parameters in the Item / Sub Inventory button of the Sub The FLM is the multiple in which the item gets replenished. If the
    Inv. The Min and Max qty are the levels between which we have to required qty is say 41, it will be rounded off to the multiple of 5, to 45
    maintain the quantities. ( and not to 41)
    Mention the source as Sub Inventory. System creates the rep output : Now make a miscellaneous receipt of 4.
    Source Replenishment output
    Sub Inventory Move Order
    Inventory Internal Requisition
    Supplier Purchase Requisition
    Ensure the OH balances in OHA - OHQ Now perform a Min Max Planning report with Planning Level as Sub
    Inventory and Sub Inventory name as 01_min_sub1
    Submit the concurrent. It does the calculation in 5 steps.
    1) Calculate Available Quantity as OHQ + Supply – Demand
    2) Check whether AQ is less than the Min qty.
    3) If so, calculate the required qty as Max – AQ
    4) Apply FLM and round it to the next multiple.
    5) Calculate ROQ as a combination of Max Order Q and Min O
    Qty. Apply one max. If it is still less than step 4, apply one min. If
    it now exceeds step 4, apply only one max.
    6) Ensure step 5 output does not cross step 4 output.
    Upon completion, open the report and find one item has gone below
    7) If MM is 10,50,5,20,40 with OHQ as 3, ROQ will be 40
    the Minimum level. Here OHQ is 4 and Available qty is also 4 as there
    8) If MM is 10,50,5,10,40 with OHQ as 3, ROQ will be 50.
    is no supply and demand.
    9) If MM is 10,50,5,5,40 with OHQ as 9, ROQ will be 45.
    Since Min O qty is 10, ROQ is 50, Had it been 20, ROQ will be 40 only. Make a receipt of 2 more qty. Now OHQ is 6.
    Change the Min OQ to 5
    Now for a setting of 10,50,5,5,40 with OHQ as 6, the ROQ is 45 Till now we have seen a Replenishment report. We will now see about
    how to trigger a replenishment. Go to System Administrator and query
    the profile ( Profile : Systems navigation) INV : Minmax Reorder
    Approval and set it to Appoval Required at our responsibility level
    ( Inventory, Vision Operations ( USA). Do not disturb site profiles.
    In the parameters of Min Max, set Restock = Yes. This will trigger the Verify Restock=Yes and other parameters.
    replenishment. Since we have set the sourse as Sub Inventory in Item /
    Sub Inventory button in Sub Inventory Form, the system will create an
    incomplete Move Order.
    We can observe the creation of a incomplete move order with 2 lines. Now if you again run the same MM Planning Report ( Copy from the
    One for a max of 40 q and an other for 5 qty to meet step no. 4 ( ie. 45 previous concurrent), It will not give any output. This is because, the
    q). The profile value of Approval Required has created an Incomplete Move Order just created has contributed to the supply for this item. So
    Move Order. the available quantity ( On hand of 9 + expected Move Order supply of
    45) has exceeded the minimum setting of 10.
    Now repeat the same concurrent with a setting of Include Move Order Now since the MO do not contribute to the supply, the Available
    Supply = No. quantity ( 9 qty) has fallen below the minimum level of 10. The system
    triggers another Incomplete Move Order for two lines. Refer User
    Guides for a list of all the sources and Supply and Demand. Available
    qty calculation is very important in Min Max Planning.
    Change the profile value to Pre Approved. Run the concurrent with Restock = Yes and Include Move Supply = No
    We can now find a Pre Approved Move Order Created ( Query in the Now we will go for an Org level replenishment. Here set the Min, Max,
    navigation Move order – Mover Order). This completes the FLM, Min OQ, Max OQ and Source as Supplier in Master Items
    Replenishment of a Sub Inventory with a Source of Sub Inventory. window.
    Make the source as Supplier. It will create a Pur. Requisition. And for a
    source of Inventory, it will create a Internal Requisition.
    Make a check if the Org level qty. ( This includes all the sub nventory) Now run the MM Plg report with a Planning Level of Organisation.
    This report will not pick our item for MM Plg. This is because we have Now repeat the above updation at Organisation Items navigation (Give
    updated the attributes at Master Level which is incorrect. Al the above different values to observe which one is picked)
    6 attributes are controlled at Org Level. Observe caution while updating
    any item attribute after assignment. Check at the display levels in the
    right top of Master items form.
    Now our item will appear in this report. Observe that MM parameters
    Run the MM Plg report at Organisation level. are picked from Organisation items and not from Master Items.
    Replenishment of this item through Supplier will be covered in
    Purchasing Module. Write to me for any query at
    [email protected]
    Best Wishes for a prosperous career in apps. Nana

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