To specify the minimum and maximum inventoryThis topic describes how a supplier in a vendor managed inventory (VMI) setup can perform supply planning based on the minimum and maximum inventory level that the customer should have in inventory. Safety stock and maximum inventory level of an
item If a valid terms and conditions agreement prescribes a minimum inventory, LN ignores the item's safety stock set up for the customer's warehouse. If a valid terms and conditions agreement prescribes a maximum inventory, LN ignores the item's maximum inventory level set up for the customer's warehouse. If the terms and definitions do not prescribe a minimum inventory on a particular date, LN applies the item's safety stock. Similarly, if the terms and definitions do not prescribe a maximum inventory on a particular date, LN applies the item's maximum inventory level. You can define an item's safety stock and maximum inventory level in the Item - Ordering (tcibd2100m000) session or the Item Data by Warehouse (whwmd2510m000) session. Methods to specify inventory levels You can define the required inventory levels in the following ways:
You can find the fields mentioned in the following sections in the Terms and Conditions Line (tctrm1620m000) session, on the Planning tab. To define fixed inventory levels To define fixed levels for the minimum inventory or the maximum inventory, complete the following steps:
To define time-phased inventory levels To define time-phased levels for the minimum inventory or the maximum inventory, complete the following steps:
To define number of days supply For instructions how to specify the minimum and maximum inventory levels by defining the number of days supply, refer to Planning based on number of days supply. Note When the customer approves a forecast revision, the maximum and minimum levels are frozen for that revision.
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