Oracle R12
– Inventory Planning & Replenishment Methods
Oracle Inventory manages the inventory levels using any
combination of the system’s planning and replenishment features, including Min–Max
Planning, Reorder Point Planning, Kanban Replenishment and a replenishment
system for generating the orders.
Replenishment orders are generated when the below
scenario is met:
On-Hand Quantity + Supply - Demand < Minimum Inventory
Level
Minimum Inventory level is a safety stock designed to be
on an exception basis to meet demand or inventory while waiting for
replenishment in the inventory.
Order Quantity
should balances the cost of placing an order with the cost of carrying
inventory while covering expected demand. Then a requisition to be created to replenish
inventory from another organization or a supplier.
Inventory Planning Methods:
1. Reorder-Point Planning (Organization),
2. Min-Max Planning (Organization and Sub-Inventory),
3. Replenishment Counting,
4. Vendor Managed,
5. Kanban Planning.
2. Min-Max Planning (Organization and Sub-Inventory),
3. Replenishment Counting,
4. Vendor Managed,
5. Kanban Planning.
