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<ManualTopic ID="/baanerp/cp/onlinemanual/000488" xml:lang="en">
   <Header>
      <Title>To specify the minimum and maximum inventory</Title>
      <Keyword type="header" order="d1e184944">
         <Level1>Planning</Level1>
         <Level2>minimum/maximum inventory level</Level2>
      </Keyword>
      <Keyword type="header" order="d1e184949">
         <Level1>VMI</Level1>
         <Level2>minimum/maximum inventory level</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>This topic describes how a supplier in a <Link href="/baanerp/wh/glossary/glossary#000469" role="glossary">vendor managed inventory (VMI)</Link> setup can perform supply
		planning based on the minimum and maximum inventory level that the customer
		should have in inventory.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>Safety stock and maximum inventory level of an
		item</SectionTitle>
      <Paragraph>If a valid <Link href="/baanerp/tc/glossary/glossary#000500" role="glossary">terms and conditions agreement</Link> prescribes a <Emphasis>minimum</Emphasis> inventory, ERP Enterprise ignores the item's <Link href="/baanerp/wh/glossary/glossary#000377" role="glossary">safety stock</Link> set up for the customer's warehouse.</Paragraph>
      <Paragraph>If a valid terms and conditions agreement prescribes a <Emphasis>maximum</Emphasis> inventory, ERP Enterprise ignores the item's <Link href="/baanerp/tc/glossary/glossary#000511" role="glossary">maximum inventory level</Link> set up for the customer's
		warehouse.</Paragraph>
      <Paragraph>If the terms and definitions do <Emphasis>not</Emphasis> prescribe a minimum inventory on a particular date, ERP Enterprise applies the item's
		safety stock. Similarly, if the terms and definitions do not prescribe a <Emphasis>maximum</Emphasis> inventory on a particular date, ERP Enterprise applies the item's
		maximum inventory level.</Paragraph>
      <Paragraph>You can define an item's safety stock and maximum inventory
		level in the <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> session or the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> session.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Methods to specify inventory levels</SectionTitle>
      <List>
         <ListIntro>You can define the required inventory levels in the following
		  ways:</ListIntro>
         <ListItem>Fixed inventory levels</ListItem>
         <ListItem>Time-phased inventory levels</ListItem>
         <ListItem>Inventory levels based on the number of days of
		  supply</ListItem>
      </List>
      <Paragraph>You can find the fields mentioned in the following sections in
		the <GUIRef href="/baanerp/tc/trm/tctrm1620m000" role="session">Terms and Conditions Line (tctrm1620m000)</GUIRef> session, on the <GUIRef href="/baanerp/tc/trm/tctrm2151m000#tctrm110.plng" role="groupbox">Planning</GUIRef> tab.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To define fixed inventory levels</SectionTitle>
      <ProcedureList>
         <ListIntro>To define fixed levels for the minimum inventory or the
		  maximum inventory, complete the following steps:</ListIntro>
         <ListItem>Set the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.mmsp" role="manual">Min-Max Specification</GUIRef> field to <GUIRef href="/baanerp/tc/domains/imms#by.quantity" role="option">By Quantity</GUIRef>.</ListItem>
         <ListItem>Enter the required inventory levels in the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.mnil" role="manual">Minimum Inventory Level</GUIRef> field and the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.mxil" role="manual">Maximum Inventory Level</GUIRef> field.</ListItem>
      </ProcedureList>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To define time-phased inventory levels</SectionTitle>
      <ProcedureList>
         <ListIntro>To define time-phased levels for the minimum inventory or the
		  maximum inventory, complete the following steps:</ListIntro>
         <ListItem>Set the <GUIRef href="/baanerp/tc/trm/tctrm1135m000#tctrm135.mmsp" role="manual">Min-Max Specification</GUIRef> field to <GUIRef href="/baanerp/tc/domains/imms#by.quantity" role="option">By Quantity</GUIRef>.</ListItem>
         <ListItem>
            <Paragraph>Enter the required inventory levels in the <GUIRef href="/baanerp/tc/trm/tctrm1136m000" role="session">Planning Inventory Levels (tctrm1136m000)</GUIRef> session.</Paragraph>
            <Paragraph>To start the <GUIRef href="/baanerp/tc/trm/tctrm1136m000" role="session">Planning Inventory Levels (tctrm1136m000)</GUIRef> session, in the <GUIRef href="/baanerp/tc/trm/tctrm1620m000" role="session">Terms and Conditions Line (tctrm1620m000)</GUIRef> session, open the <GUIRef href="/baanerp/tc/trm/tctrm2151m000#tctrm110.plng" role="groupbox">Planning</GUIRef> tab, and then, on the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu, click <GUIRef href="/baanerp/tc/trm/tctrm1135m000#start.inventory.levels" role="command">Inventory Levels</GUIRef>.</Paragraph>
         </ListItem>
      </ProcedureList>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To define number of days supply</SectionTitle>
      <Paragraph>For instructions how to specify the minimum and maximum
		inventory levels by defining the number of days supply, refer to <Link href="/baanerp/cp/onlinemanual/000480" role="manual">Planning based on number of days supply</Link>.</Paragraph>
   </GeneralSection>
   <Note>
      <SectionTitle> Note</SectionTitle>
      <Paragraph>When the customer approves a forecast <Link href="/baanerp/cp/glossary/glossary#000457" role="glossary">revision</Link>, the maximum and minimum levels are frozen for
		that revision.</Paragraph>
   </Note>
   <RelatedTopics>
      <SectionTitle> Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000476" role="manual">To work with minimum and maximum inventory</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000480" role="manual">Planning based on number of days supply</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000114" role="manual">Inventory planning in Enterprise Planning</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>