Use-up materials and alternative materials in Enterprise Planning

This topic describes how Enterprise Planning handles use-up materials and alternative materials.

Note

  • This functionality is available only if the Alternative Materials and Use Up Material check boxes in the Implemented Software Components (tccom0100s000) session is selected.

  • If multisite is activated, all materials must come from warehouses linked to the same site, and belonging to the same planning cluster.
  • A planning cluster can contain one or more sites, ATP checks are done for the whole planning cluster so that the results contain cumulative inventory results for all sites linked to the planning cluster.
  • In the Item - Ordering (tcibd2100m000) session, you can view or maintain the last allowed order date and the safety stock by site.
  • LN also checks for a use-up material that must be used up first.

  • The value of the ATP/CTP horizon of alternative materials must be greater than the alternative material horizon. Beyond the ATP/CTP horizon, LN assumes that the material is unlimited available.

Planning with alternative materials

The order-based planning process checks whether the projected inventory stays above the safety stock if you use the standard material to fulfill the material requirement for the planning cluster for which order planning is done.

If the projected inventory drops below the safety stock, LN searches for a firm-planned order that can be rescheduled to an earlier date to fill the requirement.

If LN finds no such order, LN checks the available-to-promise (ATP) quantity of the component's alternative materials (in priority order) across the whole planning cluster. If ATP finds an alternative material, the material requirement is shifted to that alternative material.

If the ATP is insufficient, LN will generate a new planned order for the standard material for the specified planning cluster.

If the material requirement cannot be fulfilled in time, LN generates a signal to notify the planner.

Alternative material horizon

For material requirements in a relatively far future, LN does not check for alternative materials.

To determine how far into the future LN checks for alternative materials, use the Alternative Materials Horizon field in the Scenarios (cprpd4100m000) session.

Allow multiple materials

If the Allow Multiple Items check box in the Job Shop List of Materials (tibom3610m000) session is selected for the specific item and site combination, LN can distribute the estimated quantity of the material over multiple items.

For example, the estimated quantity can be divided over the use-up material and the standard material or over the standard material and one or more alternative materials.

If you do not permit multiple items, LN makes a choice for each material line: LN issues either the standard material or the alternative material, but not a combination of two or more materials.

For examples, refer to Searching for alternative materials.

Restrictions

The following restrictions apply:

  • The selection of use-up materials and alternative materials is only available in order-based planning and not in master-based planning
  • The materials must be available in the warehouses linked to sites which belong to the selected planning cluster.
  • The capable-to-promise checks do not take alternative materials into account.
Phase numbers

From all items that have the same phase number, LN first plans the items that can be used as an alternative material, to determine the ATP of these items.

The phase number of a BOM component must equal the phase number of the component's alternative materials. If these phase numbers happen to be different, LN first tries to adjust the phase numbers to solve that problem. If the BOMs and alternative-material definition contains a cycle, a change of phase number cannot solve the problem and LN will display an error message.

If LN shows the Alternatives Cycle detected. error message, use the Remove Used Up Materials from Alternative Materials (tibom0252m000) session to remove the alternative material that causes the problem.

Example

The following situation is an example of an alternative cycle:

  • Item A has phase number 0.
  • B is a material in the BOM of A (B has phase number 1)
  • C is a material in the BOM of B (C has phase number 2)
  • A is an alternative for material C. (A must have the same phase number as C, but A has phase number 0)

Many other combinations can result in an alternative cycle.

Checks on the execution level

You can repeat the check later, after you transferred the orders to the execution level. In that case, LN will recheck the inventory levels and change the selection of materials if necessary.

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