How Classifications Work with Policy Profiles and Policy Profile Assignments in Min-Max Planning

Min-max planning in Oracle Inventory Management enables you to maintain the inventory levels by specifying the minimum and maximum quantities for an item. When the inventory level falls below the minimum quantity that's defined for an item, min-max planning recommends a replenishment order to bring the inventory level back to the maximum quantity. You define reusable replenishment profiles that help the calculation program for the inventory policies to calculate the min-max quantities.

Here's how to calculate the min-max quantities for an item using min-max planning:

Create classifications to associate items or item categories that have similar attributes.
Create policy profiles to define the policy parameters.
Assign policy profiles to classifications.
Run the Calculate Min-Max Planning Policy Parameters scheduled process.

Note: If you're using process manufacturing, min-max plans the primary items and any associated co-products. This can result in possibly exceeding the maximum quantity for an item. You can get around this by planning only one product at a time.

Classifications

Create classifications under the Default classification group to associate categories with similar item attributes to a classification. You then associate the classification to a category by specifying the classification criterion.

In the Setup and Maintenance work area, use the Manage Min-Max Planning Classification Groups task to create a classification:

Offering: Manufacturing and Supply Chain Materials Management
Functional Area: Inventory Management
Task: Manage Min-Max Planning Classification Groups

Policy Profiles

Policy profiles enable you to specify the policy parameters to calculate the min-max quantities. Each policy profile acts as a placeholder, which contains a set of policy parameters.

In the Setup and Maintenance work area, use the Manage Min-Max Planning Policy Profiles task to create policy profiles:

Offering: Manufacturing and Supply Chain Materials Management
Functional Area: Inventory Management
Task: Manage Min-Max Planning Policy Profiles

Policy Profile Assignments

Policy profiles assignments enable you to assign policy profiles to classifications at the organization and subinventories levels.

In the Setup and Maintenance work area, use the Manage Min-Max Planning Policy Profile Assignments task to set up policy profile assignments:

Offering: Manufacturing and Supply Chain Materials Management
Functional Area: Inventory Management
Task: Manage Min-Max Planning Policy Profile Assignments

Calculate Min-Max Planning Policy Parameters Scheduled Process

Run the Calculate Min-Max Planning Policy Parameters scheduled process to compute the min-max quantities at the item organization or item subinventory level.

The min-max quantities are calculated at the item organization level when you:

Associate one or more categories with a classification.
Assign a policy profile to the classification at the organization level.
Set the Inventory Planning Method to Min-max planning in the Specifications tab of an organization using the Manage Items task. The Manage Items task is in the Product Information Management work area.

The min-max quantities are calculated at the item subinventory level when you:

Associate one or more categories with a classification.
Assign a policy profile to the classification at the subinventory level.
Select the Min-Max planning check box at the item subinventory level using the Manage Subinventories and Locators task. The Manage Subinventories and Locators task is in the Setup and Maintenance work area.