Change Based on Quantity

A change is usually performed at the lack of stock except for the engineering changes where the urgent measures are required for safety reason. This method is called Change Based on Quantity, where new items are entered as the child items of the old ones, and both the classification showing that the engineering change was based on the inventory and the quantity of inventory to be changed are specified in the product structure of old items. In the figure, e.g. Part b is an old item, and a new part d is entered as its child item. In MRP, the Requirements Planning of Part b is performed, and at the result of inventory allocation, the Requirements Planning of Part d (not "b") is to be performed after the inventory quantity becomes less than 11. The bill of materials where new items are put in lower-level of old items is different from the actual one, and this is a compendium method for MRP to perform an engineering change by inventory quantity. When the engineering change was over, it is necessary to remove obsolete parts and change back to the original item structure.

Related term: Engineering Change