| To work with minimum and maximum inventory |  |
| This topic describes how a supplier in a vendor managed inventory (VMI) setup can perform supply planning and replenishment based on the minimum and maximum inventory level that the customer should have in inventory. Relevant parameters The following fields on the Terms and Conditions Line (tctrm1620m000) session's Planning tab, determine how this method is applied. Use Min-Max Inventory Levels Min-Max Specification Time-phased Inventory Levels Inventory Unit Minimum Inventory Level Maximum Inventory Level Minimum levels, maximum levels, or both To use this method to plan the supply to the customer, set the Use Min-Max Inventory Levels field to Minimum Levels, Maximum Levels, or Minimum and Maximum Levels. If you set the Use Min-Max Inventory Levels field to Maximum Levels, you must use another method to plan the supply. If the terms and conditions agreement specify a maximum level, the customer limits the forecast for each forecast period to this maximum level. If the inventory at the customer exceeds the maximum inventory level, ERP LN generates a signal for the customer and the VMI supplier. Methods to specify inventory levels You can define the required inventory levels in the following ways: Fixed inventory levels Time-phased inventory levels Inventory levels based on the number of days of supply For more information, refer to To specify the minimum and maximum inventory. Related topics To specify the minimum and maximum inventory Planning based on number of days supply VMI planning based on inventory levels Replenishment based on minimum inventory Inventory planning in Enterprise Planning |