Oracle Inventory lets you manage your 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 orders.
Inventory planning involves answering 3 questions:
When to Order?
Typically, you should order when:
on-hand quantity + supply - demand < minimum inventory level
The minimum level is a safety stock designed to be on an exception basis to meet
demand or inventory while waiting for replenishment.
How Much to Order?
Typically you should order a quantity that balances the cost of placing an order with the cost of carrying inventory while covering expected demand. You then create a requisition to replenish inventory from another organization or a supplier.
Which Planning Methods to use ?
• Reorder-point planning (organization)
• Min-max planning (organization and subinventory)
• Replenishment Counting
• Vendor managed
• Kanban planning
• Material-requirements planning: Master Production Scheduling/Master Demand Scheduling (organization)