Overview of use-up materials and alternative materials
Use Up and Alternative Materials are two different features.
You can use the use-up functionality to ensure that material, used in previous revisions of the end item, is used up completely before new material is utilized. This prevents a buildup of inventory that may become obsolete.
The use-up functionality can be used in both Job Shop and Assembly.
You can use alternative materials to handle shortage problems during production, and to reduce cost.
BOM materials are often small parts that are ordered in large quantities, for which several alternatives are available. In case of shortage, the material specified as preferred in the bill of material (BOM) as is ordered.
If the material cannot be ordered in time to fulfill the requirement an alternative material is chosen.
Use Up is available in Assembly and in Job Shop. Alternative Materials are available in Job Shop only. If both Use Up and Alternatives are available for a component in Job Shop, initially Use Up inventory is consumed, and if this is in shortage, the Alternative Material is consumed.