This document explains how to set up a use-up Engineering Change Order (ECO) MRP will use up existing inventory before planning new items. If demand changes for the use-up item, MRP will recommend a new use-up date.
This document explains how to set up a use-up Engineering Change Order (ECO) MRP will use up existing inventory before planning new items. If demand changes for the use-up item, MRP will recommend a new use-up date.
This document explains how to set up a use-up Engineering Change Order (ECO) MRP will use up existing inventory before planning new items. If demand changes for the use-up item, MRP will recommend a new use-up date.
This document explains how to set up a use-up Engineering Change Order (ECO)
so that Material Requirements Planning (MRP) will use up existing inventory
before planning new items.
Follow these set-up steps:
1. Apply all necessary patches (see list below).
2. Run an MRP. MRP calculates the use-up date for all items that have inventory in stock. If there are more gross requirements than what is in stock, MRP estimates a date when the inventory will be consumed. If there are fewer gross requirements than what is in stock, MRP sets the use-up date equal to the end of the planning horizon.
3. Create an ECO (see the Engineering User's Guide for complete instructions).
4. Navigate to Engineering/ECOs/ECOs. Click on the [Revised Items] button and enter the item number to be revised.
5. Click on the [Components] Button. - Action = Disable for the use-up item. Fill in all other required fields for that component. - Action = Add for the replacement item. Fill in all other required fields for that component.
6. Save and close the Revised Components window after making your ECO changes.
7. While in the Revised Items Screen, tab over to the effective date field in the Main alternate region. - Click on the list of values (LOV) button. An LOV containing active plans appears. - Choose the use-up plan name/component. The plan name field in the 'Use-Up Details' alternate region is automatically populated with the plan name that you chose from the effective date LOV.
8. Fill in the remaining relevant fields for the revised item. Do not implement the ECO. Use-up only works for non-implemented ECO's.
9. Save your changes.
10. Rerun MRP.
11. Look at the demand for the old item. MRP passes down demand to the old item to use-up the leftover inventory for the old item.
12. Look at the supply/demand for the new item. If necessary, MRP will create planned orders for the new item after all of the old item is consumed.
13. If demand changes for the use-up item such that the inventory on hand will be used up EARLIER than the original effective date specified on the ECO, MRP will recommend a new, earlier use-up date for the use-up item.
It is helpful to use Oracle's ECO Use-up Alert for notification of such changes. Please refer to your Engineering User's Guide for information about how to setup the ECO Use-Up Alert.
If you receive an alert telling you that a new use-up date has been calculated, you should consider changing the effective date on the existing, non-implemented ECO before your next MRP run. Please note that MRP will only RECOMMEND a change to the effective date. MRP will not automatically change the original effective date you chose for your ECO.
14. If demand changes for the use-up item such that the inventory on hand will be used up LATER than the original effective date specified on the ECO, MRP will recommend a new use-up date that will be equal to the end of your planning horizon. ECO Alerts will notify you of such recommendations.
If you receive an alert advising that the new use-up date is the end of the planning horizon, there is one of three things you should do:
- examine the ECO to determine the most cost effective cut-in date for your ECO
- calculate your own use-up date for the use-up item and replace the effective date on the ECO with that date before your next MRP run (if you still feel that it is necessary to use-up some or all of the on hand inventory for the use-up item before cutting in your ECO)
- change the effective date of the ECO to equal the end of your planning horizon. The next time your MRP runs, an alert will advise the new (correct) use-up date for your use-up item. If you change your ECO to reflect this newly calculated use-up date, your next MRP run will use up all of the on hand inventory for the use-up item.
Patches to be applied ---------------------
There are several patches that must be applied to the base release of 10.7.Prod 16.1SC in order to get use-up to work correctly. There are also a few patches for Release 11. These include:
App. Included in Standard or Included Ver. Patch Patchset? Memory-based? Files Version ---- ----- ----------- ------------- ------- ------- 10.7 520444 N/A Standard mrtnw3.h 50.0 mrlnex.ppc 50.113 mrlnw2.ppc 50.112 mrlnw4.PPC 50.96 mrlsii.ppc 50.96 mrtnw3.ppc 50.0
11.0 713404 MRP.C& up Memory-based mrlnw3.ppc 11.0.21
11.0 880314 MRP.D& up Memory-based d880314.drv 110.0 mrpplan.odf 110.23
11.0 751006 ENG.C& up N/A ENGFDECN.fmb 110.32
11.0 789409 MRP.C& up Memory-Based d789409.drv 110.0 mr603039.sql 110.4
Note: The following is to clarify the behavior for 11.5.x releases 1. The effective date of the ECO will be considered as the use up date if the use up item is the assembly instead of the components. 2. When you define a revised item on an ECO, you can select the use-up date for all components of the revised item and the use-up date of the revised item itself for all MRP plans that include those items. Doing so will default the plan name and use-up item. The revised item effective date is now linked to a use-up date.