Your organization is using min-max planning to replenish stock and the planning parameters are set at item organization level with a default subinventory. Item: A, Min Qty: 25, Max Qty: 150 and…

Question

Options

• AFixed lot multiplier is not set.
• BNo value has been set for the "Min-Max Replenishment Reorder Approval" profile.
• CMin-Max planning can be performed at the Organization level.
• DRounding the Reorder Quantity is disabled.
• EItem is not defined in Manage Item Subinventories.

• A
  3% (1)
• B
  3% (1)
• C
  6% (2)
• D
  18% (6)
• E
  71% (24)

Explanation

Option E is correct because when min-max planning is configured at the organization level with a default subinventory, Oracle requires the item to be explicitly defined in Manage Item Subinventories. Without that item-subinventory association, the system has no valid destination for replenishment and cannot generate the purchase requisition - even though the on-hand quantity (20) is clearly below the minimum (25).

Why the distractors are wrong:

• A (Fixed lot multiplier): This affects the size of the reorder quantity, not whether a requisition is created at all.
• B (Reorder Approval profile): This controls approval routing after the requisition is created - it doesn't prevent creation.
• C (Org-level planning): This is a true statement, not a reason for failure; min-max can run at the org level, so this explains nothing about why it didn't trigger.
• D (Rounding disabled): Like A, this influences quantity calculation, not requisition generation.

Memory tip: Think "the item must know where it lives." If the item isn't registered in the subinventory via Manage Item Subinventories, Oracle has no confirmed destination, so it won't fire the requisition - no address, no delivery.

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