Oracle EBS Min-Max Planning Quantity Calculator
Oracle Inventory min-max planning compares projected stock with a minimum and maximum quantity on the item and suggests replenishment. Choosing those two numbers well is the work. This calculator derives them from demand, lead time, variability and cost.
Your numbers
Forecast or last 12 months usage.
Measured from daily or weekly usage history.
Your results
Planning aid only. Assumes normally distributed daily demand and a fixed lead time. Test the result against your real usage history before loading values into item attributes.
Min and max quantity vs lead time
Sweeps Replenishment lead time from 1 to 60, holding your other inputs fixed.
Recalculate min-max from your EBS history
Optional expert review of automating replenishment parameters from real transaction data.
Optional. The tool and every export work without this. No spam.
How to use the calculator
Enter annual demand, working days, replenishment lead time and the variability of daily demand. Select the service level you want and add unit cost, order cost and carrying cost. The result shows the minimum quantity (the reorder point), the maximum quantity and the underlying safety stock and order quantity. Use the chart to see how the quantities change as lead time moves, which helps when negotiating with suppliers.
- Use the same unit of measure as the item's primary UOM
- Measure variability from real history, not estimates
- Re-run when lead times or demand change materially
The formulas
Safety stock is the Z score for the service level times the standard deviation of daily demand times the square root of lead time in days. The minimum is average daily demand times lead time plus safety stock. Economic order quantity is the square root of two times annual demand times order cost divided by unit cost times the carrying rate. The maximum is the minimum plus the order quantity, so a replenishment brings stock back up to the maximum.
Worked example
With the defaults, daily demand is 48 units. At 95 percent service, Z is about 1.645, giving safety stock of about 74 units over 14 days. The minimum is about 746. The EOQ is about 889, so the maximum is about 1,635, with roughly 13 orders per year. If the supplier lead time doubles, safety stock grows by about 41 percent, not double, because variation scales with the square root of time.
Using the result in Oracle
Min-max quantities are stored as item attributes in the inventory organization, along with the fixed lot multiplier and minimum order quantity if you use them. Apply results to a pilot group first, review the replenishment suggestions for a few cycles, and adjust. Items with lumpy demand, long lead times or supplier constraints may suit MRP or kanban better than min-max.
Frequently Asked Questions
Is min-max the same as reorder point?
The minimum quantity acts as the reorder point, and the maximum is the order-up-to level. The difference is that Oracle compares projected availability, including open supply and demand, with these values.
What service level should I choose?
Higher levels cost more safety stock. Many plants use 95 to 98 percent for regular items and higher for critical spares. Choose by cost of a stockout versus the cost of carrying the stock.
Why does the maximum include EOQ?
When stock falls to the minimum, an order of about one EOQ restores it, so the maximum is the minimum plus the order quantity. If your supplier has lot sizes, round up accordingly.
Does this suit slow movers?
For very slow items the normal assumption is weak. Use judgement, a Poisson-based approach, or a simple one-or-two-piece policy for expensive, rarely used parts.
If you want min and max values recalculated regularly from actual transaction history in your ERP, Netray can discuss a read-only analytics approach.
Related Tools
Oracle EBS Cycle Count Setup Worksheet
Editable worksheet to plan ABC cycle counts, record counted quantities and see variance in units and value before you approve adjustments in EBS.
OracleOracle EBS On-Hand Reconciliation SQL Generator
Generate a SQL query that compares on-hand quantity to the net of material transactions for an organization, to spot unexplained differences.
OracleOracle EBS Item Cost Update Request Form
Fill-in form to request and approve a standard cost change with reason, impact and sign-off lines for the audit file.
OracleOracle EBS Inventory Organization Parameters Setup Template
Fill-in setup document for a new inventory organization with the decisions a business owner must sign off before configuration.
More Oracle tools
See all- Oracle EBS Discrete Job Statuses Reference
- Oracle EBS Inventory Transaction Types Reference
- Oracle EBS Item Attribute Template Worksheet
- Oracle EBS MRP Exception Messages Reference
- Oracle EBS BOM Interface Load Worksheet
- Oracle EBS Inventory Period Close Checklist
- Oracle EBS WIP Accounting Class Reference
- Oracle EBS WIP Job Close Variance Worksheet
- Oracle EBS Routing and Operations Load Worksheet
New to Oracle E-Business Suite? Start with the Oracle E-Business Suite guide and toolkit, or plan with Oracle EBS Roadmap Planner, Training Path Builder, ERP Certification Study Planner.
Keep exploring
Free tools
- Oracle Fusion Min-Max and Safety Stock CalculatorWork out the min and max quantities and safety stock to load into Oracle Fusion item organization attributes, with a lead time what-if chart.
- Oracle EBS Item Lead Time CalculatorCompute total planning lead time for a make or buy item from preprocessing, fixed, variable and postprocessing days.
- Oracle EBS Discrete Manufacturing Go-Live ChecklistA grouped go-live checklist for Oracle Inventory, BOM, WIP and Cost Management covering setup, data, testing and cutover for discrete manufacturers.
ERP fixes and how-tos
- How to Create an Item in Oracle EBSCreate an inventory item in Oracle EBS: Master Items form, master organization, templates, attributes, organization assignment, categories and common errors.
- Oracle EBS Outside Processing and Production SchedulingSet up outside processing in Oracle EBS WIP and Purchasing: OSP items, resources, departments, routing and requisitions, plus how discrete job scheduling works.
- How to Add a Private AI Layer to Oracle EBS 12.2 On-PremReference architecture for a private AI layer on Oracle EBS 12.2: Active Data Guard replica, ISG REST, MO and responsibility security, local GPUs and audit.
Runs with your ERP
- Esker Order Management and Oracle E-Business SuiteHow Esker captures customer POs from email, fax and PDF and creates sales orders in Oracle EBS: integration, data flows, setup, pitfalls and a private AI layer.
- Prometheus GWOS-AI with Oracle E-Business SuiteHow Prometheus GWOS-AI adds graphical work order scheduling on Oracle EBS maintenance data, also for Fusion and JD Edwards: flows, setup, pitfalls, AI ideas.
- Cloud Inventory (DSI) with Oracle E-Business Suite: Mobile Barcode InventoryCloud Inventory, formerly DSI, adds offline mobile barcode inventory to Oracle E-Business Suite and JD Edwards. Data flows, setup steps, pitfalls and AI notes.
AI on your ERP
- AI for Oracle E-Business Suite, Without Leaving On-PremHosting Oracle EBS 12.2 on-prem or in a private cloud? Add a private LLM over concurrent programs, interface tables and AP/PO data without moving to Fusion.
- AI for Oracle EBS in Industrial Manufacturing: WIP, MRP, and BOM Questions Answered DirectlyAI for Oracle E-Business Suite in industrial manufacturing: WIP jobs, BOMs, MRP, inventory and purchasing answered in plain English, private and read-only.
Integrations
- How to use ChatGPT with Oracle E-Business SuiteUsing ChatGPT with Oracle E-Business Suite: export vs live access, custom GPT actions over ISG REST, enterprise data controls and when to keep data on-prem.
- How to connect Claude to Oracle E-Business SuiteConnect Claude to Oracle E-Business Suite via MCP, the Anthropic API, AWS Bedrock or Vertex, and know when an on-prem open-weight model is the better fit.