Purchased Supply Switching

The Purchase Supply Switching and Generate Purchase Order Exceptions processes are key components in planning of inventory and supplies. The functions they perform do not greatly impact the system's performance and you will receive better results from your planning activities due to these capabilities.

APS allocates supplies and inventory to fulfill demands based on order categories and priorities. If your items have complex bills of material and routings, allocations can result in a higher priority order reserving supply and inventory before a lower priority order, even if the lower priority order needs the quantity sooner. If the lower priority order cannot satisfy the demand from supplies and inventory, the system creates the planned purchase order for the unsatisfied quantity (earlier than you really need it).

Purchased Supply Switching allows the system to allocate supply and inventory (for purchased items) according to the date they are needed. After the system completes its initial planning, it performs an additional process that ignores order priorities and reallocates supplies and inventory according to the demand due dates:

When planning a demand, the system checks for existing supply and inventory that is allocated to a demand that is due later. If any exist, the system reallocates that supply or inventory to the earlier demand and creates a planned purchase order to satisfy the later demand.
Because the Generate Purchase Order Exceptions processing is enabled, a Move In Receipt exception message is generated to alert you that the existing purchase order was consumed and that you should adjust its Due Date accordingly.

Note: This process affects how the system creates planned orders for safety stock replenishment of purchased items.

Note: If a supply is cross-referenced to a demand, it will not be affected by the Purchased Supply Switching process.

Note: This process does not apply to Reorder Point items.