Product Substitution

[Former Member]

Hi,

We would like to model Product Substitution in IBP, however looks like its only supported by optimzer and with only at customer location as per below link.

http://help.sap.com/saphelp_ibp40FP01/helpdata/en/a9/576b541336e830e10000000a44538d/content.htm

We would like to consider the product substitution across network at SKU-DC , SKU-Plant using simple heuristics solution. Please confirm if this possible.

E.g. Substition chain , PLeadProduct -> POldProduct1 -> PoldProduct2

      Supply Network is Customer1 -> DC1 -> Plant

      Now Demand is only for PLeadProduct of 1000 @ Customer1.

    Initial Inventory Pleadproduct @ Cust1 - 100

    Initial Inventory POldProduct1 @ Cust1 - 100

    Initial Inventory PoldProduct2 @ Cust1 - 100

    Initial Inventory Pleadproduct @ DC1 - 100

    Initial Inventory POldProduct1 @ DC1 - 100

    Initial Inventory PoldProduct2 @ DC1 - 100

    Initial Inventory Pleadproduct @ Plant - 100

    Initial Inventory POldProduct1 @ Plant - 100

    Initial Inventory PoldProduct2 @ Plant - 100

    We expect Customer reciept of 700 to happen to Customer1 from DC1

    We expect trasport reciept of 400 to happen to DC1  from  Plant1

    We expect production of 100 to happen @ Plant1.

Thanks

Vivek

[pramod_mane2]

Hi Vivek,

The Heuristic is unconstrained so all demand for the primary product is always satisfied so there is no substitution happening .

You can define the Product Substitution relationship and the Optimizer run (depending on penalty costs set-up) will try to fulfill the customer demand with substitute product.

Thanks

Pramod

[Former Member]

Hello Pramod,

Thanks for your clarification. We thought it will consider in heuristic similar to heuristics in SAP APO. Looks like only optimizer will consider substitution in IBP.

Also, Does optimizer consider substitution at all the nodes of supply chain ?

Because, help document says only for the products with C-Rule.

Thanks

vivek

[carsten_schumm]

Hello Vivek,

the optimizer currently only supports product substitution at customer locations.

If you want to have product substitution inside the supply chain, you can model them easily via P-rules which transform one product into the other.

Kind regards,

Carsten