| The search for alternative materials |  |
| This topic describes how and when ERP LN automatically takes an alternative material for a production order instead of a standard material. For an introduction to the concept of alternative materials, refer to Alternative materials in BOMs. For instructions on how to define alternative materials, refer to To define alternative materials. Note This functionality is available only if the Use Up and Alternative Materials check box is selected in the Implemented Software Components (tccom0100s000) session. How does ERP LN perform the checks ERP LN performs the checks for alternative materials according to the following principles: Each alternative material has a priority. If ERP LN finds any appropriate use-up material, that material is used first, even if a sufficient quantity of the standard material is available. If the standard material is out of stock, ERP LN first tries the highest-priority alternative. If that material is also unavailable, ERP LN tries the alternative that has the next priority, and so on. Material availability ERP LN uses the following methods to determine whether a use-up material or an alternative material is available on the required date: In the Enterprise Planning package ERP LN checks the material's quantity available-to-promise. In the Shop Floor Control (SFC) module ERP LN checks the material's time-phased economic stock. In the Warehousing package ERP LN checks the material's inventory on hand. To distribute a material requirement over multiple items If, on a BOM line in the Bill of Material (tibom1110m000) session, the Allow Multiple Items check box is selected, ERP LN can split a material over multiple alternative materials. Multiple sessions have a check box named Allow Multiple Items: The Allow Multiple Items check box in the Bill of Material (tibom1110m000) session is relevant for the generation of planned orders and production orders. The Allow Multiple Items check box in the Estimated Materials (ticst0101m000) session is relevant for the Generate Alternatives for Estimated Materials (ticst0216m000) session and the generation of the outbound advices. Example 1: Use-up materials Material X-CURRENT has replaced the older item X-OLD. The following table shows the inventory situation.
Item | Inventory | Priority
X-OLD | 15 | Use up
X-CURRENT | 250 | (standard)
For a particular production order, you need a quantity of 100 pieces of X-CURRENT. If multiple items are permitted, ERP LN takes the last 15 pieces of the use-up material (X-OLD) and 85 pieces of the current material (X-CURRENT). If multiple items are not allowed, ERP LN does not use up the old material X-OLD. Another material requirement of 15 or less can occur later, in which case, ERP LN takes the use-up material. Example 2: Alternative materials Material X has two alternatives: X1 and X2. The following table shows the inventory situation.
Item | Inventory | Priority
X | 20 | (standard)
X1 | 30 | 1
X2 | 1200 | 2
For a particular production order, you need a quantity of 100 pieces of X. If multiple items are permitted, ERP LN takes the following materials: 20 pieces of the standard material (X) 30 pieces of the first alternative material (X1), and 50 pieces of the second alternative material (X2) If multiple items are not permitted, ERP LN plans 100 pieces of alternative material X2, because none of the higher-priority materials are available in sufficient quantities. When does ERP LN perform the checks At one or more of the following points during a production order's life cycle, ERP LN can check the timely availability of standard materials and alternative materials: ERP LN performs these checks when the order-planning procedure in Enterprise Planning generates planned production orders. If the Automatic Select Alternatives field in the Shop Floor Control Parameters (tisfc0500m000) session is set to At Generation, ERP LN performs these checks when you create a production order or transfer a planned production order to the Shop Floor Control (SFC) module. If the Automatic Select Alternatives field in the Shop Floor Control Parameters (tisfc0500m000) session is set to At Release, ERP LN performs these checks when you release a production order. You can perform these checks manually by using the Generate Alternatives for Estimated Materials (ticst0216m000) session. You can use this session until the estimated materials are frozen. The estimated costs are frozen if the Estimated Costs Are Frozen check box in the Estimated Materials (ticst0101m000) session is selected. You can check again for material shortages and select alternative materials at the moment when you generate an outbound advice in the Warehousing package. To do so, you must select the Handle Alternative Items check box in the Process Outbound Advice (whinh4200m000) session, or select the Handle Alternative Items check box in the Generate Outbound Advice (whinh4201m000) session. Repeated material checks In general, if ERP LN repeats the material availability check and a sufficient quantity of the currently selected material is available, ERP LN does not change the material allocation, even if a higher-priority alternative material or the standard material has meanwhile become available. This policy avoids a nervous planning process that repeatedly changes the material allocations. However, if you want to make sure that the standard material or the highest-priority alternative material is used in a production order, you can use the Generate Alternatives for Estimated Materials (ticst0216m000) session to recheck all possible materials at any time. In that case, you must select the Always Reconsider Alternatives check box. Example Suppose that the following events occur: During the creation of a production order, ERP LN takes an alternative item because of an anticipated shortage for the standard material at the material allocation date. Before the allocation date for the material, you unexpectedly receive an inbound shipment of the standard material that is sufficient to fulfill the material requirement. Next, you generate the outbound advice in the Warehouse Management package. If the currently selected alternative material is available, ERP LN does not change the material allocation and issues the alternative material from the warehouse to the shop floor, regardless of the availability of the standard material. To force ERP LN to check again for the availability of the standard material, start the Generate Alternatives for Estimated Materials (ticst0216m000) session and select the Always Reconsider Alternatives check box. Related topics Alternative materials in BOMs To define alternative materials Use-up materials and alternative materials in Enterprise Planning |