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For example, if the material plan for an item is as follows:
Beginning QOH = 600 | Day 2 | Day 3 | Day 4 | Day 5 | Day 6 |
---|---|---|---|---|---|
Gross Requirements | 200 | 200 | 300 | 300 | 0 |
Table 1 - 45. Material Plan for Item (Page 1 of 1) |
Oracle Master Scheduling/MRP and Supply Chain Planning calculates, based on the projected gross requirements for this item, that the current quantity on hand is exhausted on Day 4. Therefore, the planning process sets the use-up date for this item to be Day 4.
When you define a revised item for an ECO, you can specify whether the planning process should recommend a suggested effective date for the revised item. If you indicate that the planning process should calculate the suggested effective date, you also specify a use-up item. Oracle Master Scheduling/MRP and Supply Chain Planning recommends a suggested effective date based on the use-up date of the use-up item.
For example, you may want to change how you build an assembly. You manufacture a board, that has Chip A as a component:
You have decided to change the Assembly Board to use a new and improved Chip B instead of Chip A.
You define an ECO with the Board assembly as the revised item. You specify Chip A as a revised component with a usage quantity of 0, and Chip B as a revised component with a usage quantity of 1. You'd like to use up the Chip A's you have in stock before beginning to use the Chip B's. Therefore, you would define the ECO as use-up and set the use-up item to be Chip A. Oracle Master Scheduling/MRP and Supply Chain Planning suggests an effective date based on the use-up date of Chip A.
Note: While Oracle Master Scheduling/MRP and Supply Chain Planning calculates the use-up date as the basis for suggesting an effective date for the ECO, the planning process uses the current effective date instead of the suggested effective date when generating component requirements. The only case where Oracle Master Scheduling/MRP and Supply Chain Planning considers the suggested effective date of the ECO when generating component demand is when the use-up item is the assembly (in our example, the Board assembly) instead of one of the components.
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