Searching for alternative and use-up materials

This topic describes how and when LN automatically takes an alternative material for a production order instead of a standard material.

Note

If multisite is activated, standard and alternative materials are planned and issued per planning cluster. A planning cluster contains one or more sites, for which an available-to-promise check will generate cumulative results.

How does LN perform the checks
LN performs the checks for alternative materials according to the following principles:
- Each alternative material has a priority.
- If LN finds any appropriate use-up material, that material is used first, even if a sufficient quantity of the standard material is available.
- If the standard material is out of stock, LN first tries the highest-priority alternative. If that material is also unavailable, LN tries the alternative that has the next priority, and so on.
Material availability
LN uses the following methods to determine whether a use-up material or an alternative material is available on the required date:
- In the Enterprise Planning package
  LN checks the material's quantity available-to-promise.
- In the Job Shop Control module
  LN checks the material's time-phased economic stock.
- In the Warehousing package
  LN checks the material's inventory on hand.
To distribute a material requirement over multiple materials
If, on a BOM line in the Bill of Material (tibom1110m000) session, the Allow Multiple Items check box is selected, LN can split a material over multiple alternative materials and the original material.
Multiple sessions have a check box named Allow Multiple Items:
- The Allow Multiple Items check box in the Bill of Material (tibom1110m000) session is relevant for the generation of planned orders and production orders.
- The Allow Multiple Items check box in the Estimated Materials (ticst0101m000) session is relevant for the Generate Alternatives for Estimated Materials (ticst0216m000) session and the generation of the outbound advices.
Example 1: Use-up materials
Material X-CURRENT has replaced the older item X-OLD. The following table shows the inventory situation.
Item Inventory Priority
X-OLD 15 Use up
X-CURRENT 250 (standard)

For a particular production order, you need a quantity of 100 pieces of X-CURRENT.
If multiple items are permitted, LN takes the last 15 pieces of the use-up material (X-OLD) and 85 pieces of the current material (X-CURRENT).
If multiple items are not allowed, LN does not use up the old material X-OLD. Another material requirement of 15 or less can occur later, in which case, LN takes the use-up material.
Example 2: Alternative materials
Material X has two alternatives: X1 and X2. The following table shows the inventory situation.
Item Inventory Priority
X 20 (standard)
X1 30 1
X2 1200 2

For a particular production order, you need a quantity of 100 pieces of X.
If multiple items are permitted, LN takes the following materials:
- 20 pieces of the standard material (X)
- 30 pieces of the first alternative material (X1), and
- 50 pieces of the second alternative material (X2)
If multiple items are not permitted, LN plans 100 pieces of alternative material X2, because none of the higher-priority materials are available in sufficient quantities.
When does LN perform the checks
At one or more of the following points during a production order's life cycle, LN can check the timely availability of standard materials and alternative materials:
- LN performs these checks when the order-planning procedure in Enterprise Planning generates planned production orders.
- If the Automatic Select Alternatives field in the Production Order Parameters (tisfc0500m000) session is set to At Generation, LN performs these checks when you create a production order or transfer a planned production order to the Job Shop Control module.
- If the Automatic Select Alternatives field in the Production Order Parameters (tisfc0500m000) session is set to At Release, LN performs these checks when you release a production order.
- You can perform these checks manually by using the Generate Alternatives for Estimated Materials (ticst0216m000) session.
  You can use this session until the estimated materials are frozen. The estimated costs are frozen if the Estimated Costs Are Frozen check box in the Estimated Materials (ticst0101m000) session is selected.
- You can check again for material shortages and select alternative materials at the moment when you generate an outbound advice in the Warehousing package. To do so, you must select the Handle Alternative Items check box in the Process Outbound Advice (whinh4200m000) session, or select the Handle Alternative Items check box in the Generate Outbound Advice (whinh4201m000) session.
Repeated material checks
In general, if LN repeats the material availability check and a sufficient quantity of the currently selected material is available, LN does not change the material allocation, even if a higher-priority alternative material or the standard material has meanwhile become available. This policy avoids a nervous planning process that repeatedly changes the material allocations.
However, if you want to make sure that the standard material or the highest-priority alternative material is used in a production order, you can use the Generate Alternatives for Estimated Materials (ticst0216m000) session to recheck all possible materials at any time. In that case, you must select the Always Reconsider Alternatives check box.
Example:
Suppose that the following events occur:
- During the creation of a production order, LN takes an alternative item because of an anticipated shortage for the standard material at the material allocation date.
- Before the allocation date for the material, you unexpectedly receive an inbound shipment of the standard material that is sufficient to fulfill the material requirement.
- Next, you generate the outbound advice in the Warehousing package.
If the currently selected alternative material is available, LN does not change the material allocation and issues the alternative material from the warehouse to the job shop, regardless of the availability of the standard material.
To force LN to check again for the availability of the standard material, start the Generate Alternatives for Estimated Materials (ticst0216m000) session and select the Always Reconsider Alternatives check box.