- Min-Max & Multi-Bin Min Max
- 2015-05-20 01:22:00
You can a setup an item for Min-Max replenishment method by selecting the planning method of that item to ‘Min Max’ in item master. Min-max planning also requires values of minimum quantity and maximum quantity for each inventory levels for your items.
Min-Max setups are done in inventory org level. So, if required, you can select one item as Min-Max planning in one inventory but MRP planning in another inventory.
For Min-Max planned items, when the inventory level drops below the minimum quantity defined for that item, min-max planning suggests a supply to bring the inventory level back up to the maximum quantity.
Min-Max planning can be used for both purchasing (Creating purchase order & internal requisition) and manufacturing (Creating work orders).
Min-Max planning inventory level considers on-hand quantities & on-ordered quantities to suggest supplies.
inoERP provides a Min-Max calculator which you can use to calculate the optimum min, max values by considering your forecast. System also allows you to auto update the min max sizes in the master through the ‘Update Item Min Max Parameter’ program.
Multi Bin Min Max (©inoERP)Multi Bin Min Max is an advanced version of Min Max that reduces the average on hand inventory by optimizing the ordered quantity.
In multi bin min max, the min and max values are kept same. When the total supply reaches below minimum level, system auto-generates a supply of one bin size. So, in ideal scenario the maximum inventory on-hand should be 1 bin size of quantity. Rest of the bin should remain in supply chain as open supply documents. (Such as open POs)
Proper usage of Multi Bin Min Max can improve inventory performance by a good margin esp. for long lead-time and high value items.
Min Max Planning Process Flow
1. Select items for Min Max planning and Update the planning method of all min max planned items to Min Max.
2. Enter the min and max sizes for all the min max items. You can complete this step by 2 ways.
2.1. Determine the size of min max outside the system and import the min max numbers to system.
2.2 Use min max calculator
2.2.1 Create a min max planner.
2.2.2. Verify the min max demand in Min Max demand work bench.
2.2. 3. Run the calculate Min Max numbers program.
2.2.4. Review the Min Max Planner Suggestions.
2.2.5. Run ‘Update Item Min Max Parameters’ program.
3. Run ‘Create Supply Min Max’ program to generate the requisition / work order.