Defining a Min-Max Item Create an item in the Item Master. In the General Planning tab, Select the Inventory Planning Method as Min-Max. The other options are: Not Planned Reorder Point Vendor Managed Choose to enter a value for the Minimum Min-Max Quantity and a Minimum Order Quantity. This would come in handy if the item were to be planned at the organization level. If you choose to execute Min Max at the subinventory level, as the next steps will show. As required, save the work and assign the item to the M2 organization (Boston Manufacturing) in the Vision instance. Creating a Supply Demand Balance Create two subinventories – one with an adequate supply of the item and one with zero on hand balance for that item. Select the Stores for the first and FGI for the second. You can use Miscellaneous Receipt to create an initial on hand balance of 500 units of item ECDXSS in the Stores subinventory. Min-Max Setup at the Subinventory Level
Create an item in the Item Master. In the General Planning tab, Select the
Inventory Planning Method as Min-Max.
The other options are:
Not Planned
Reorder Point
Vendor Managed
Choose to enter a value for the Minimum Min-Max Quantity and a Minimum OrderQuantity. This would come in handy if the item were to be planned at the organization
level. If you choose to execute Min Max at the subinventory level, as the next steps willshow.
As required, save the work and assign the item to the M2 organization (BostonManufacturing) in the Vision instance.
Creating a Supply Demand Balance
Create two subinventories – one with an adequate supply of the item and one with zero onhand balance for that item. Select the Stores for the first and FGI for the second.
You can use Miscellaneous Receipt to create an initial on hand balance of 500 units of itemECDXSS in the Stores subinventory.
Evan now focuses his attention on the FGI subinventory. Something has to be done in thesetupof this subinventory to indicate that FGI will source this item from
theStores subinventory when the on hand quantity goes below a designated minimum.
In the Planning tab for the FGI subinventory, Evan specifies that the item ECDXSS is Min-
Max driven whenever it resides in FGI. And whenever the quantity falls below the MinQty of 50 in FGI, it will be time for Min-Max to trigger a replenishment.
The quantity of 500 is just the suggested quantity to maintain as the maximum on handbalance.
In the Order Modifiers tab Evan has an opportunity to specify a Fixed Lot Multiple of 80.
This implies that the quantity for replenishment will be suggested (calculated by the Min-Max algorithm) in multiples of 80.
Finally, in the Sourcing tab, Evan mentions that Stores will be the sourcing subinventory.
The only task that is left is to run the Min-Max Planning report. This report serves tohighlight items that need replenishment and also suggests the replenishment quantity
based on the setup that Evan has created.
Evan looks at the report output.
But when he looks at the Reorder Quantity of 560 Evan realizes that his Order Quantity
Multiple of 80 has been considered. The Max Qty for Min-Max had been set to 500. So, thealgorithm tries to reach 500 using multiples of 80. However, upon reaching the 480 mark it
still falls short of 500. The system therefore adds another 80 units to arrive at a ReorderQuantity of 560.
