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.
One for a max of 40 q and an other for 5 qty to meet step no. 4 ( ie. 45
q). The profile value of Approval Required has created an Incomplete
Move Order.
Now if you again run the same MM Planning Report ( Copy from the
previous concurrent), It will not give any output. This is because, the
Move Order just created has contributed to the supply for this item. So
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
Supply = No.
Now since the MO do not contribute to the supply, the Available
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
navigation Move order – Mover Order). This completes the
Replenishment of a Sub Inventory with a Source of Sub Inventory.
Make the source as Supplier. It will create a Pur. Requisition. And for a
source of Inventory, it will create a Internal Requisition.
Now we will go for an Org level replenishment. Here set the Min, Max,
FLM, Min OQ, Max OQ and Source as Supplier in Master Items
window.
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.

Run the MM Plg report at Organisation level.
Now our item will appear in this report. Observe that MM parameters
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
apps.nana@gmail.com
Best Wishes for a prosperous career in apps. Nana