Example: inventory usage 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 LN uses the inventory of an interchangeable unit to cover demand of an other unit.

Inventory usage for units

In week 12, the following requirements and receipts exist for item X:

Day	Required quantity unit 101	Required quantity unit 102	Firm-planned receipts unit 102
1	6
2		5
3	4
4		3	12
5	2

The projected inventory at the start of day 1 is as follows:

Unit 101: 8
Unit 102: 3

Interchangeable

If units 101 and 102 are interchangeable, the inventory and the firm-planned receipts can be used for both units. In other words, no planned order need be generated in this situation. The firm-planned receipt on day 4 must be rescheduled to day 3: LN indicates this in a rescheduling message.

Not interchangeable

If units 101 and 102 are not interchangeable, LN generates:

A rescheduling message for the firm-planned receipt on day 4 (reschedule to day 2)
A planned order for unit 101 on day 3
Possibly, a planned order for unit 101 on day 5 (depending on the lot-size rules and the order interval)