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How does the oracle the Min and Max Quantities for the Min-Max policies been setup in the system

in Inventory Management 8 comments

The system automatically calculates the minimum and maximum quantities as defined in the Manage Min-Max Planning Policy Profiles for Min-Max plans. We would like to understand how Oracle derives these values.

Note: Our understanding is that the Maximum Quantity is calculated using the formula:
Average Daily Demand × Maximum Days of Cover.

Could you please confirm if this is correct?


Additionally, could you also clarify the formula used to calculate the Minimum Quantity?

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