The Croatian striker was the club's record signing last January, but he failed to cement his spot in the Foxes team and managed only two appearances this season.
Ranieri said: "Andrej wasn't the main striker, he was more behind Vardy.
"Kramaric has fantastic skill but sometimes he rests and recovers. This team can't recover, they need to run, run, run.
"When I say we are building a good team, I would like to have two players for each position, so when I change, you don't see the difference.
"Kramaric didn't play, I have Ulloa, Okazaki and Vardy so I need one more I can change so the result is the same, I will have good strikers on the pitch."