Why the Requisition is Not Generated for Subinventory with Low Stock Level
Question
Your organization is using min-max planning to replenish stock and the planning parameters are set at item organization level with a default subinventory.
Item: A, Min Qty: 25, Max Qty: 150 and Current Level: 20 The item above is purchased from a supplier.
Although there is subinventory on hand, the subinventory is below the minimum required level.
This should trigger a Min-Max report entry, but the requisition is not generated.
Why?
Answers
Explanations
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A. B. C. D. E.E.
Min-Max planning is a common inventory planning method that determines the minimum and maximum inventory levels of an item. When the current inventory level falls below the minimum quantity, a report entry is generated to trigger a replenishment action, such as generating a purchase requisition or a work order.
In the given scenario, the item A has a minimum quantity of 25, maximum quantity of 150, and a current inventory level of 20. However, despite the inventory level being below the minimum quantity, no requisition is generated. This suggests that there is an issue with the Min-Max planning configuration or settings.
Let's examine the possible answers:
A. Fixed lot multiplier is not set. Fixed lot multiplier is a setting used in the Min-Max planning method to determine the purchase order quantity. It multiplies the quantity by a fixed factor to determine the order size. However, this setting is not related to the issue described in the scenario, so this answer is not correct.
B. No value has been set for the "Min-Max Replenishment Reorder Approval" profile. This profile controls the approval process for replenishment orders generated by the Min-Max planning method. However, this answer does not explain why a report entry is not generated when the inventory level falls below the minimum quantity. So, this answer is not correct.
C. Min-Max planning can be performed at the Organization level. This statement is true, as Min-Max planning can be performed at the organization level. However, it does not explain why a report entry is not generated when the inventory level falls below the minimum quantity. So, this answer is not correct.
D. Rounding the Reorder Quantity is disabled. Rounding the Reorder Quantity is a setting used in the Min-Max planning method to round the order quantity to a specified value. However, this setting is not related to the issue described in the scenario, so this answer is not correct.
E. Item is not defined in Manage Item Subinventories. Manage Item Subinventories is a setting used to specify the subinventory where an item is stocked. If an item is not defined in Manage Item Subinventories, the system may not be able to find the subinventory with stock on hand. This could prevent a report entry from being generated, as the system may not be aware that the item is below the minimum quantity. Therefore, this answer is correct.
In conclusion, the reason why a report entry is not generated when the inventory level falls below the minimum quantity is that the item is not defined in Manage Item Subinventories.
