Product interchangeability not considering stock of old product

[AA3]

Testing Product interchangeability with Location as MRP areas

created chain with new item as succssor product and old as the presecessor with DIRECTION --->FORWARD

After Running OPTIMIZER with Both the products and all Locations , OPTIMIZER is ordering new item and not the old item even though there is huge stock on hand of the old item.

please let me know if the optimizer will select new product irrespective of the old stock on hand.

[Former Member · Accepted solution]

Hi,

Check whether you have defined the use up indicator and use up date in interchangeability definition.

Thanks,

nandha

[AA3 · Accepted solution]

Use Up Indicator is set to YES and there is no USE-up Date set

[Former Member · Accepted solution]

1. Are you using planning book 9ASNP_PS with data view PROD_SUBST or copy of it?

2. Check SNP optimizer profile for relevant settings for interchangeability?

3. Check optimizer inout log - does it show supersession chain you have created? (ET_CHAIN table)

4. SNP Optimizer works based on cost. If it find orderring new produt is cheaper it can do that.

If you want A's demand to be fulfilled by B' stock define forward interchageability A > B.

but B's demand will alway be fulfilled by B's stock only.

it does sustitution at the end location- so substitution will happen at DC if you have demand at DC but stock at plant.

I have used product interchageability (forward) and it worked as per your requirement.

Regards,

Vipul

[AA3 · Accepted solution]

In our case interchangeability is considering stock at current location only, but it is not selecting stocks that are present in other locations at the time of optimizer run.

Do we need any cost profiles to be setup ?

[Former Member · Accepted solution]

Hi,

Have you included all the locations in the INC definition and also select cross location in the location field.

Thanks,

nandha

[AA3 · Accepted solution]

Yes that is setup in location tab and cross location , The locations also have transportation lanes set between them.

[Former Member · Accepted solution]

Hi,

Product A is to be superseded by product B in location C.

There is no remaining stock of product A at location C. If demand is received for product A, the heuristic would transfer the demand to product B.

However, the optimizer checks whether there is any stock of product A in other locations of the model.

For instance, if there is still sufficient stock at location D, the optimizer checks the costs for transferring the stock of product A from location D to location C. If this is the most cost-effective solution (because storage costs at D are higher than the costs for transporting to C, for example), the optimizer plans the stock transfer from D to C. The demand for product A is then covered by the transferred stock.

Request you to check in your case whether this is the case.

Note: The optimizer does not calculate costs for interchanging products at the same location.

Thanks,

nandha

[AA3 · Accepted solution]

Yes thats exactly the case , but optimizer is not looking for stock existing at other location, it is checking only for the same location and finally proposing external procurement.

The point is I have product A at location LOC1 -

---

> Forward to Product B at LOC 1

Now when Demand comes in for Product B at LOC1 , it is not considering the existing stock of Product A at same Location and it is proposing external procurement.

Another point is it is not considering stock placed at other locations (cross location)

We are not maintaining any Cost profiles , however the transportation lanes between locations exisit

please respond

[Former Member · Accepted solution]

Hi,

Define the full interchangeability in the INC master definition along with use up indicator and Use up date.

In the /SAPAPO/SNPOP screen enable the check box " Add products from the supersession chain"

Thanks,

nandha

[AA3 · Accepted solution]

we are defining this for cross locations, how will the use by date come into consideration if i have stocks at different locations ?

for use by date do we need to set up strategy as Restricted ?

[AA3 · Accepted solution]

can you please respond on if we need to setup cost profiles, if yes what parameters need consideration

[AA3 · Accepted solution]

we needed to set up the Cost profiles