How To Set Up Use-Up ECO'S So That MRP Will Recognize The ECO Use-Up Date [ID 10

77005.6]
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Modified 12-JAN-2010 Type WHITE PAPER Status PUBLISHED

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
10.7 676517 N/A Memory-based mrlnex.ppc 50.119
10.7 713404 N/A Memory-based mrcnew.opp 50.41
mrlcpx.ppc 50.155
mrldfc.ppc 50.25
mrlflp.ppc 50.56
mrlhsk.ppc 50.3
 mrlnex.ppc 50.123
mrlnsp.ppc 50.41
mrlnw2.ppc 50.127
mrlnw3.ppc 50.98
mrlnw4.ppc 50.100
mrlnw5.ppc 50.83
mrlnw6.ppc 50.23
mrlnw7.ppc 50.22
mrlnw8.ppc 50.11
mrlnw9.ppc 50.10
mrlopl.ppc 50.37
mrlpdw.ppc 50.13
mrlpgl.ppc 50.11
mrlpi2.ppc 50.8
mrlsdi.ppc 50.53
mrlsfo.ppc 50.49
mrlsii.ppc 50.71
mrlsmc.ppc 50.27
mrlspo.ppc 50.40
mrlswi.ppc 50.48
mrlsyi.ppc 50.16
mrlwdr.ppc 50.69
mrtflp.ppc 50.10
mrtnex.ppc 50.18
mrtnw1.ppc 50.13
mrtnw2.ppc 50.28
mrtnw3.ppc 50.0
mrtsii.ppc 50.8
mrtwdr.ppc 50.0
10.7 786647 N/A Standard mrlp15.ppc 50.77

10.7 733994 N/A Both d733994.drv 50.0

mrpplan.odf 50.114
10.7 789409 N/A Both d789409.drv 50.0
mr603039.sql 50.5
10.7NCA 751006 ENG.A& up N/A ENGFDECN.fmb 60.161
10.7SC 751006 N/A N/A ENGFDECN.fmb 60.161
ENGFDECN.fmx 60.161
ENGFMECO.pll 60.68
ENGFMECO.plx 60.68
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.

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