Oracle Fusion Min-Max and Safety Stock Calculator
Min-max planning in Oracle Fusion Inventory Management compares available supply to a minimum and a maximum quantity held on the item organization. This calculator turns demand, variability and lead time into defensible values for both, so you are not loading round numbers someone guessed.
Your numbers
Average consumption per working day over a recent stable period.
Standard deviation of daily usage, from issue transactions or a forecast error report.
Supplier or manufacturing lead time, in days.
How often the min-max plan is run and reviewed.
Days of demand added above the min to set the max, which drives order size.
Your results
Assumes normally distributed daily demand and a constant lead time. Validate against your own usage history before loading values into item attributes.
Min and safety stock vs lead time
Sweeps Replenishment lead time from 1 to 90, holding your other inputs fixed.
Recalculate min-max from live Oracle data
Optional expert review of how to refresh planning attributes from your actual Oracle usage history.
Optional. The tool and every export work without this. No spam.
How to use the calculator
Pull average daily usage and its standard deviation from your inventory issue history, usually a rolling 6 to 12 months with one-off spikes removed. Enter the replenishment lead time and how often min-max planning is run. Choose a service level that matches the item class: A items often justify 97.5% or 99%, C items 90%. The result gives safety stock, the min and the max. Load the min and max into the planning attributes of the item for the inventory organization, then test one planning run on a few items before mass loading through a file-based import.
The formula behind the result
Safety stock is Z multiplied by the standard deviation of demand over the exposure window. The window is lead time plus review period, because stock must survive both the wait for supply and the gap until the next check. Standard deviation scales with the square root of time, so doubling lead time raises safety stock by about 41%, not 100%. The min equals expected demand over that window plus safety stock. The max adds the demand for your chosen order cycle, which fixes the average order size.
- Safety stock = Z x demand std dev x sqrt(lead time + review)
- Min = daily demand x (lead time + review) + safety stock
- Max = min + daily demand x order cycle days
Reading the chart and common mistakes
The chart sweeps lead time and shows how the min and the safety stock grow, which helps when negotiating shorter supplier lead times: cutting lead time often frees more stock than lowering the service level. Typical mistakes are using monthly standard deviation with a daily demand figure, ignoring the review period, leaving supplier lead time at the quoted value rather than the observed one, and applying the same service level to every item. Revisit values after any change in supplier, season or forecast method.
Frequently Asked Questions
Is this the same method Oracle uses for min-max planning?
Oracle compares on-hand plus incoming supply to the min and max you store on the item and creates replenishment when supply falls below the min. It does not derive the min and max for you. This tool provides a standard statistical way to choose those two values.
Which service level should I choose?
Pick by item importance and cost. High-value or line-stopping parts usually justify 97.5% to 99%, while cheap, easily substituted items are fine at 90% to 95%. Higher service levels raise safety stock sharply, so apply them selectively.
What if demand is intermittent or lumpy?
The normal approximation breaks down for items with many zero-demand days. For those, use a larger review window such as weekly or monthly demand, or set the stock by a fixed number of orders of cover instead of a statistical buffer.
Does it include supplier lead time variability?
Not directly. If lead time varies a lot, add the variance in quadrature outside this tool or use the worst credible lead time as the input. Many planners use the 90th percentile of observed receipt lead times.
If you want min-max values recalculated from live Oracle usage data on a schedule, with a human approving each change, we can build that. It is optional; the calculator works on its own.
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