Purchasing Setup: Min-Max Planning

By Jag - August 15, 2012
Purchasing Setup: Min-Max Planning
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NOTE: Any and all profile options discussed in this document can be defined from the following responsibility and navigation with Oracle Applications:
Responsibility: System Administrator
Navigation: Profiles -> System

1.   Inventory must be fully installed.

2.   Items that will be min-max planned must be defined in the item master organization.
   Responsibility: Purchasing Super User
                  - OR -
                  Inventory
   Navigation: Items/Master Items

Attributes that must be defined:
   Inventory Planning Method = Min-Max
   Min-Max Quantity Minimum >   0
   Min-Max Quantity Maximum > Min-Max Quantity Minimum
   Make or Buy =   Make for make items or Buy for buy items
   Safety Stock = Non-MRP Planned
   All related accounts must be defined
   Inventory Item flag should be enabled
   Stockable flag should be enabled
   Transactable flag should be enabled

Attributes specific to Buy items:
   Make or Buy = Buy.
   Purchased flag should be enabled
   Purchasable flag should be enabled
   Source Type = Supplier

Attributes specific to Make items:
   Make or Buy = Make
   Make in WIP flag should be enabled
   Source Type = Inventory
   Source Type Organization and subinventory (if used) should be populated

Once the item is defined, it should be assigned to the inventory organization that the Min-Max Planning Report will replenish.   This can be done while in the Master Items form by clicking on the Special pull-down
menu and picking Organization Assignments, then checking the desired organization(s) and saving.

3.   Determine if requisitions should be imported with a status of Approved or Incomplete.   This is done by defining the system profile option
INV: Minmax Reorder Approval.

4.   If the item has the Use Approved Supplier attribute enabled, the requisition can be populated with a suggested supplier.   To use this functionality, the following should be performed:

A.   Responsibility: Purchasing Super User
       Navigation: Supply Base -> Approved Supplier List
       Link the item and supplier to the source document, which is typically a
       blanket purchase agreement.   Be sure that the status of the source
       document is Approved.

B.   Navigation: Supply Base -> Sourcing Rule
       Create a sourcing rule.
       - Type = Buy From
       - Allocation can be any value for Requisition Import (only Oracle
      Inventory uses this field)
       - Rank should be #1 (Oracle Purchasing uses rank)

C.   Navigation: Supply Base -> Assign Sourcing Rule
       Assign the item to the sourcing rule that was just created in step B above.   The assignment set name used should be the same assignment set that is specified in the following profile option:
          MRP: Default Sourcing Assignment Set
       This profile can be set at the Site, Application, Responsibility, and User levels.   The system will check each level and will compare the lowest level (most detailed) profile setting for the user running
       Requisition Import to the assignment set for the item. If they match,
       the suggested buyer will be populated on the requisition as well.

5.   To submit the Min-Max Planning Report:
   Responsibility: Inventory
   Navigation: Planning -> Min-Max Planning

The following parameters, at minimum, should be specified when running
this report for the purpose of generating requisitions to be imported into
Oracle Purchasing:
   Planning Level    When set to Subinventory, the report neither
                        generates WIP jobs nor does it consider them as
                        supply or demand
   Item Selection    Choices are: Items under minimum quantity
                                    Items over maximum quantity
                                    All min-max planned items
   Sort By              Choices are: Inventory item
                                    Category
                                    Planner
                                    Buyer
   Restock              Must be set to Yes in order for requisitions to be
                        generated.   If the user wishes to verify the results
                        prior to generating requisitions, the report should
                        be first run with this parameter set to No.
   Default Delivery To   Will default to the default location specified for
                        the current inventory organization that the report
                        is being run for.

6.   Once the report is run, the requisition data is written to the table
PO_REQUISITIONS_INTERFACE_ALL, provided that the Restock parameter was set
to Yes at the time the report was submitted.   Requisitions can then be
imported from the Oracle Purchasing application by selecting the Requisition
Import process.
   Responsibility: Purchasing Super User
   Navigation: Reports -> Run
   Report Name: Requisition Import

NOTE:   Beginning with Release 11, the requisition approval workflow process
will automatically initiate once the Requisiton Import process has
completed, regardless of the setting of the INV: Minmax Reorder Approval
profile option.   If the desired effect is to always have requisitions
imported from Min-Max Planning with an Approved status, the Initiate
Approval After ReqImport parameter of the requisition approval workflow
should be changed to No; this will prevent the document approval process
from launching.   If this parameter does not exist, Patch 1107765 will add
the parameter in Release 11; beginning with Release 11i and subsequent
releases, this parameter should be included.


RELATED DOCUMENTS
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Note 66712.1   Running the Min-Max Planning Report
Oracle Inventory Reference Manual for Release 10, Page 9-304 (Part #:A50766-01)
Oracle Inventory User's Guide for Release 11 (Part #:A58270-01)
Oracle Purchasing Users's Guide for Release 11, Page 9-130 (Part #:A56292-01)
Oracle Purchasing Reference Manual for Release 10 (Part #:A50770-01)\
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