| # Example: planned orders for units (unit effectivity) LN uses unit effectivity in order planning to support interchangeability of units. If a unit is interchangeable, LN can use it to meet requirements of a unit with the same configuration. This topic gives an example of a situation in which the order quantity is higher than the required quantity (because of lot-size rules). LN checks if it can use part of the order quantity for the requirments of a unit with the same configuration. Planned orders for units Item X has the following characteristics: Order interval = 1 week Minimum order quantity = 30 In week 12, the following requirements and receipts exist for item X:
Day | Required quantity unit 101 | Required quantity unit 102
1 | 6 |
2 |  | 5
3 | 4 |
4 |  | 3
5 | 2 |
The projected inventory on day 1 is zero for each unit. There are no firm-planned receipts. Same configuration LN initially generates a planned order on day 1, with an order quantity of 30 for unit 101. The total demand for unit 101 in the order interval is 12, so there is a surplus of 18. LN checks if this surplus can be used for other units with the same configuration (either within or beyond the order interval). If unit 101 and unit 102 have the same configuration, part of the order is changed into an order line for unit 102. This results in a planned order with the following order lines: Unit 101, quantity 22 Unit 102, quantity 8 Different configuration LN generates a planned order on day 1, with an order quantity of 30 for unit 101. If unit 101 and unit 102 do not have the same configuration, this planned order cannot be used to produce a quantity of unit 102 as well. However, if unit 101 and unit 102 are interchangeable, the inventory resulting from the planned order for unit 101 can, in turn, be used for unit 102. In this case, there is no need to generate an order for unit 102. If unit 101 and unit 102 are not interchangeable, LN generates a separate planned order for unit 102, for a quantity of 30. Related topics Unit effectivity in Enterprise Planning Interchangeability of effectivity units Overview of unit effectivity |