Min-Max is a simple replenishment method with which you can maintain a balanced inventory

without requiring much planning effort. Min Max is good for low value, high used inventory
items.

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

Min-Max is a simple replenishment method with which you can maintain a balanced inventory
without requiring much planning effort. Min Max is good for low value, high used inventory
items.

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.<h2>Multi Bin Min Max
(inoERP)</h2>

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.

<strong>Min Max Planning Process Flow</strong>

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.
Item Min-Max Setup
You can view & update the min max setup of an item by navigating to Inventory -> Item Master
-> Planning Tab.

Planning Method:
Select planning method as Min Max

Min-Max Min Quantity:

Enter a positive number for Min-Max Min Quantity. You can auto-update this field by using Min
Max Planner.

Min-Max Max Quantity:

Enter a positive number for Min-Max Max Quantity. You can auto-update this field by using
Min Max Planner.

Example
Min-Max Min Quantity: 50
Min-Max Min Quantity: 100

1. If the inventory level is 54 then system will not generate any supply
2. If the inventory level is 44 then system will suggest (100 - 44 =) 56 units
3. If the inventory level is 44 and the fixed lot multiplier 10 then system will
suggest (round[(100 - 44 = 56 units),10] =) 60 units
Min Max Planner
You can use min max planner to create minimum & maximum size for Min-Max planning.
Navigation: Dashboard >> Forecast & Planning >> Min Max Planner

Min Max Header Id:

Min Max Header Id is a read-only field. Min Max Header Id is an auto increased, primary key of the
fp_minmax_header table.

Inventory Org Name:

Select inventory organization name. You can default the inventory organization name from the inventory
organization profile.

Plan Name:
Enter a unique name for the Min Max planner.

Planning Horizon Days:

Enter horizon days. System will consider only forecasts with in the horizon days.

Description:
Enter any comment /remark in the description field.

Demand Source:
Select a demand source that will derive the demand for Min-Max calculation.
Min Max Demand
Navigation: Dashboard >> Forecast & Planning >> Min Max Planner >> Min Max Demand
Min max demand shows the demand that system uses for the min max size calculation. The min max
demand is derived from the source list and horizon days used in the Min Max planner.
Min Max Size Calculation
Use Min Max Demand Calculator program to calculate demand and size of Min Max planned
items as per the Min Max Plan.

Navigation: Forecast & Planning -> Min Max Planner -> Calculate Min Max Numbers

You can view the Min Max planner suggested Min Max sizes and number of bins in Min Max
Planner Suggestions page. You can review and update the Min Max planner suggestions in Min
Max Planner Workbench.