Forecast consumption in SNP product substitution

[Former Member]

I have demand for product 1 till the end of the year but product 2 is replacing product 1 after June.

When I get to May time frame, I would have Sales orders for product 2 in the system but the demand (forecast) for product 1.

How does the consumption of the forecast taken care of in product substituion scenarios normally?

We are looking at using this functionality in the next few months and I have till now been able to just go through the normal steps of creating interchangeability groups, run heuristics and create substitution receipts for profuct 2 and distribution receipts for product 1.

I would be grateful if somebody could help me understand a bit more about consumption in product substitution.

Appreciate your help!

Varun

[srinivas_krishnamoorthy]

Honestly I will not hazard a guess in this. Sometimes the behaviour is counter-intuitive as well. You would really need to experiment this in the system, by having a wide enough consumption window and go through a sales order cycle by creating one sales order which is big enough to encroach into the substitution logic.

[Former Member]

Hi,

In this scenario I will like to suggest you to shift the demand for Product P1 to Product P2 from the date product P1 is getting obselete if it does not affect your business logic.

Once you shift the demand the Sales Order consumption will not be a problem as their is no special cosumption logic in case of substitution.

After this you define product interchangeability for P1 and P2 such that after the end-date (change over date) stock for P1 will be used to meet the demand for P2 till the stock gets exhausted and after this system will pull stock for P2.

Hope this helps, get back in case of any issues.

Thanks,

Sanjog