END ITEM SUBSTITUTION SETUP FOR ASCP SUBSTITUTION

by
Daniel Miller
This documen is !ro"ided as a uorial# Funcionaliy chan$es since his documen %as
!roduced may a&&ec he oucome o& he es cases#
Oracle in no %ay $uaranees ha his documen is accurae or com!lee# I does no
re!lace maerials conained %ihin he Oracle A!!licaions Users 'uides or maerials
!ro"ided by Oracle Uni"ersiy#
Inroducion
() Iem Seu!s
*) Relaionshi!s
+) Pro&ile Sein$s
,) Creae Demand
-) Run Daa Collecions and Firs Plan
.) Second Plan
/) Issues o loo0 &or
1) Parameers
INTRODUCTION2
This uorial co"ers he basic seu!s &or end3iem3subsiuion &or ASCP#
A brie& ouline o& he !reliminary seu!s re4uired is $i"en %ih he assum!ion ha he
reader is already &amiliar %ih sein$ u! iems5 bills5 resources5 su!!lier and rouin$s#
PRE6IMINAR7 SETUPS
Creae he &ollo%in$ iems5 bills5 resources and rouin$s
DMNOTSUB 8OR' 9 M() 8DEP 9 DM3M(3DEPT) 8RESOURCE 9 ROBOT)
:
DM3SA3( 8M(5 M*5 S() 8DEP 9 DM3M*3DEPT) 8RESOURCE 9 MOUNTM*)
:
CM.;*-/ 8M*)
:
CM((;.* 8M*)
:
CM,-/; 8M*)
:
DM3SA3* 8M(5 M*5 S() 8DEP 9 DM3M*3DEPT) 8RESOURCE 9 MOUNTM*)
:
CM((*** 8M*)
:
CM*-*1/ 8M*)
:
CM<<<*, 8M*)
:
DM3PO3* 8M()
DMISSUB 8OR' 9 M() 8DEP 9 DM3M(3DEPT) 8RESOURCE 9 ROBOT)
:
DM3SA3* 8M(5 M*5 S() 8DEP 9 DM3M*3DEPT) 8RESOURCE 9 MOUNTM*)
:
CM((*** 8M*)
:
CM*-*1/ 8M*)
:
CM<<<*, 8M*)
:
DM3PO3( 8M()
Coss = Iem Coss
M(
DMISSUB( 9 ---
DMNOTSUB 9 .;-
DM3SA3( 9 (--
DM3SA3* 9 (/-
DM3PO3( 9 .-
DM3PO3* 9 --
M*
DM3SA3( 9 (*-
DM3SA3* 9 (,-
S(
DM3SA3( 9 (*;
DM3SA3* 9 (,;
RE6ATIONS>IPS
In"enory = Iems = Iem Relaionshi!s = Clic0 he Ne% buon
Ener he FROM iem# This is he iem ha %ill ha"e he subsiue#
In his case i is DMNOTSUB
Ener he TO iem# This is he iem ha is he subsiue#
In his case i is DMISSUB
I& he Reci!rocal chec0 bo? is chec0ed 8as seen in he ne? screen sho) hen he
subsiuion can $o boh direcions#
DMISSUB can be subsiued &or DMNOTSUB
Also
DMNOTSUB can be subsiued &or DMISSUB
Clic0 on he Plannin$ Deails buon#
Ener he Subsiuion Se#
I& he Parial Ful&illmen bo? is chec0ed hen boh iems can a!!ear on he same sales
order#
E?am!le2
Order 9 (;; o& DMNOTSUB
Onhand 9 ,; o& DMNOTSUB
Onhand 9 (*; o& DMISSUB
The order %ill be &illed usin$ ,; o& DMNOTSUB and .; o& DMISSUB
I& he Parial Ful&illmen bo? is unchec0ed hen only he subsiue iem %ill a!!ear on he
sales order#
E?am!le2
Order 9 (;; o& DMNOTSUB
Onhand 9 ,; o& DMNOTSUB
Onhand 9 (*; o& DMISSUB
The order %ill be &illed usin$ (;; o& DMISSUB
I& he All Cusomers chec0 bo? is chec0ed hen his subsiuion relaionshi! %ill a!!ly o
all cusomers#
I& he All Cusomers chec0 bo? is unchec0ed hen he cusomers ha his rule a!!lies o
%ill need o be !o!ulaed in he Cusomer Re&erence are o& he &orm#
PROFI6E SETTIN'S
MRP2Include Subsiue Com!onens 9 7es
MSC2 Choice o& iem &or %hich o creae su!!lies in subsiue relaionshi!
Possible "alues2
Demanded Iem @ A srai$h subsiuion 8DMISSUB &or DMNOTSUB)
>i$hes 6e"el Iem @ A hierarchical subsiuion 8Com!onen CM.;*-/ o&
DMNOTSUB can be subsiued %ih com!onen CM((*** o& DMISSUB# The
acual subsiuion %ill a0e !lace a he hi$hes le"el %here a subsiuion
relaionshi! is de&ined# So in his case DMISSUB %ould be subsiued &or
DMNOTSUB e"en hou$h he subsiuion is due o com!onens#
Follo% Iem Aribues @ I& more han one subsiuion relaionshi! is de&ined hen
he subsiue iem &or %hich he aribues are mos li0e he !rimary iem and is
a"ailable %ill be subsiued# See !a$e (.3*( &or !ossible con&lics %ih his
sein$#
E?am!le2
Iem A has a subsiuion relaionshi! %ih B5 C and D#
Iem A and B ha"e almos idenical aribues bu B has no on hand#
Iem A has more aribues in common %ih iem C han %ih iem D#
Boh iems C and D ha"e 4uaniy on hand#
C %ill be subsiued o"er B because i has onhand 4uaniy#
C %ill be subsiued o"er D because i has more aribues in common %ih A#
MSC2 Prioriy &or Subsiue Iems Fle?&ield Aribue2
This !ro&ile o!ion sores he name o& he &le?&ield column
ha conains he "alue in he corres!ondin$ able# See
Fle?&ield Aribues &or more in&ormaion#
De&aul "alue 9 ;
MSO2 Choice o& su!!ly &or subsiuion2
Deermines %hich su!!lies are considered by he Plannin$ En$ine &or
subsiuion# Aalid "alues are2
All Su!!lies2 Oracle Ad"anced Su!!ly Chain Plannin$ a0es su!!lies belon$in$
o subsiue iems e"en %hen here is demand &or subsiue iems# Demand
!rioriies dri"e he allocaion#
E?cess su!!lies 3 Oracle Ad"anced Su!!ly Chain Plannin$ a0es su!!lies
belon$in$ o subsiue iems only i& i &inds ha he su!!ly &rom he subsiue
iem is in e?cess# Oracle Ad"anced Plannin$ !er&orms re$ular nein$ lo$ic
%ihin he Subsiuion Bindo% and &ind ha e?cess can be o&&ered &or
subsiuion# The nai"e demand
sais&acion has !rioriy only %ihin he Subsiuion Bindo%# A&er he
Subsiuion Bindo% demand !rioriies dri"e he subsiuion# Oracle Order
Promisin$ does no honor his !ro&ile o!ion# Oracle Order Promisin$ al%ays
honors nai"e demand sais&acion lo$ic#
MSO2 Subsiue Iem Penaly2
De&ines an inernal !enaly %ei$h &or subsiue iem obCeci"e in su!!ly chain
o!imiDaion#
E?am!le2 DMNOTSUB has Dero on hand# DMISSUB has ,; on hand bu no
subsiuion a0es !lace# Chec0 he "alue o& his !ro&ile# I& i is se oo hi$h hen
he !lannin$ en$ine deermines ha i is no cos e&&eci"e o do he subsiuion#
CREATE DEMAND
Creae demand by creain$ a &orecas5 an MDS or ener a sales order#
For his case MDS demand %ill be used#
RUN DATA CO66ECTIONS AND FIRST P6AN
6aunch daa collecions &rom he Ad"anced Su!!ly Chain Planner res!onsibiliy in eiher
Ne Chan$e or Com!lee Re&resh# Tar$eed %ill no !ic0 u! he subsiuion relaionshi!#
De&ine a consrained andEor o!imiDed !lan#
In his case an o!imiDed !lan %ill be used called2
DMSUBT( in TST2M(
The o!ions used are2
Plan Name Validation
Main Tab
Planned Items
Demand and supply schedule
items only
Assignment Set
Material Scheduling
Method
Operation start date
Demand Priority Rules
End Item Substitution Set DMSUBSET
Overrite All
Demand !lass
Demand Time "ence
!ontrol
Unchecked
A##end Planned Orders Checked
Planning Time "ence
!ontrol
Checked
Move $obs to PIP Unchecked
Dis#lay %ey Per&ormance
Indicator
Checked
'ot &or 'ot Checked
"orecast Allocation Do Not Spread Forecast
!onsume by "orecast
(uc)et
Unchecked
(ac)ard Days
"orard Days
Pegging Checked
Peg Su##lies by Demand
#riority
Unchecked
Reservation 'evel None
*ard Pegging 'evel None
Planned Items
Demand and supply schedule
items only
Assignment Set
Material Scheduling
Method
Operation start date
Demand Priority Rules
End Item Substitution Set DMSUBSET
Overrite All
Demand !lass
Demand Time "ence
!ontrol
Unchecked
A##end Planned Orders Checked
Planning Time "ence
!ontrol
Checked
Move $obs to PIP Unchecked
Dis#lay %ey Per&ormance
Indicator
Checked
'ot &or 'ot Checked
"orecast Allocation Do Not Spread Forecast
!onsume by "orecast
(uc)et
Unchecked
(ac)ard Days
"orard Days
Pegging Checked
Peg Su##lies by Demand
#riority
Unchecked
Reservation 'evel None
*ard Pegging 'evel None
Aggregation Tab
Plan Start
Date
1!OCT!"#
Plan End
Date
1$!MA%!"
Days +ee)ly Period
(uc)ets #" &
Items 'tems 'tems 'tems
Resources 'ndi(idual
'ndi(idua
l
'ndi(idual
Routings )outin*s )outin*s )outin*s
Organi,ation Tab
Organi,ation TST+Seattle Manu,acturin*
Name
Organi,ation
!ode
TST+M1
Net +IP Checked
Net
Reservations
Checked
Net
Purchasing
Checked
Plan Sa&ety
Stoc)
Unchecked
Include Sales
Order
Unchecked
(ill o&
Resources
Simulation Set
Organi,ation
Name
TST+Boston Manu,acturin*
Organi,ation
!ode
TST+M-
Net +IP Checked
Net
Reservations
Checked
Net
Purchasing
Checked
Plan Sa&ety
Stoc)
Unchecked
Include Sales
Order
Unchecked
(ill o&
Resources
Simulation Set
Organi,ation
Name
TST+Chica*o Su.assem.ly
/lant
Organi,ation
!ode
TST+S1
Net +IP Checked
Net
Reservations
Checked
Net
Purchasing
Checked
Plan Sa&ety
Stoc)
Unchecked
Include Sales
Order
Unchecked
(ill o&
Resources
Simulation Set
Demand Schedule
Organi,ation !ode TST+M1
Demand Schedule
Name
DMSUBTEST
Demand Schedule
Descri#tion
MDS FO) SUBST'TUT'ON TEST
Demand Ty#e MDS
Inter#lant Demand
"lag
Unchecked
!onstraint Tab
!onstrained Plan Checked
En&orce Demand Due
Dates
Checked
En&orce !a#acity
!onstraints
Unchecked
Days
+ee)l
y
Period
(uc)ets #" &
Resource !onstraints %es %es %es
Material !onstraints %es %es %es
Minutes (uc)et Si,e -in
Days.
"
*ours (uc)et Si,e -in
Days.
"
Days (uc)et Si,e -in
Days.
#"
!alculate Resource
Re/uirements
Checked
Planned Resources
All
)esources
(ottlenec) Resource
0rou#
O#timi,ation Tab
O#timi,e Checked
En&orce Sourcing !onstraints Checked
Ma1imi,e Inventory Turns
Ma1imi,e Plan Pro2ts
Ma1imi,e On3time Delivery 1
E1ceeding Material !a#acity
4
E1ceeding Resource !a#acity
4
E1ceeding Trans#ortation
!a#acity 4
Demand 'ateness &
Decision Rules Tab
5se End Item
Substitution
Checked
5se Alternate
Resource
Checked
5se Substitute
!om#onents
Checked
5se Alternate
(OM6Routing
Checked
5se Alternate Source Checked
6aunch he !lan and re"ie% he resuls# Noice ha no subsiuion oo0 !laceF ho%e"er5
DMNOTSUB has e?ce!ions# This occurred because neiher DMNOTSUB nor
DMISSUB has any 4uaniy on hand#
SECOND P6AN
Do a Miscellaneous Recei! o& DMISSUB ino he F'S subin"enory o& a 4uaniy o& ,;#
Rerun Daa Collecions# For his se! Ne Chan$e5 Tar$eed or Com!lee %ill %or0#
Co!y Plan DMSUBT( ino DMSUBT*#
6aunch he !lan DMSUBT* and "ie% he resuls#
Noe ha his ime he e?ce!ions &or DMNOTSUB are subsiuion e?ce!ions# This
means ha subsiuion did occur# Also "ie% he Su!!lyEDemand &or DMISSUB and see
he resuls#
ISSUES TO 6OOG FOR
P2 Bu$ +((.(./ 8+-) 3 Firm Discree Hobs e?is &or .((;#BAF in or$2 u;(# Only (* o&
/*, o& his BIP is bein$ need o demands in !lan5 he res !e$ o e?cess# Hobs are due
in &irs &e% monhs o& !lan# Ne% !lanned orders are !lanned &or !rimary !ar he &irs
%ee0 o& he !lan#
E2 (# The conradicion be%een ISubsiuion Penaly Facor 8(;#+) and
In"enory Carryin$ Penaly 8;#**)# The &ormer is much bi$$er han he laer
%hich !re"ens he !roducion &rom a0in$ he alernai"e !ah 8i#e# use
subsiuion (+,</ o ma0e (+--,)# I is !robably he sandard cos o& (+,</
is oo small#
#
*# Secondly5 %e ried o con&i$ure he CP6EJ 6P mari? o &orce he !roducion on he
subsiue !ah# The in"enory3carryin$ !enaly &or he hu$e on hand o& +/< a or$ (, is
hi$her han ha in Or$ (- 8%here he BO %as creaed)# The on hand is lar$e enou$h o
sais&y all he de!endan demands comin$ do%n his (+,</ !ah# This &urher !re"ens us
&rom consumin$ he BO#
S2 Fi?ed in ((#-#<
P2 Bu$ *1;*(<* 8<*) 3 SUBSTITUTE >AS ON3>AND T>AT PE'S TO EJCESSF
PRIMAR7 >AS NEB P6ANNED ORDERS
Should ne su!!lies in he &ollo%in$ se4uence2
() ne any e?isin$ su!!lies on he !rimary com!onen !ah hen
*) ne any e?isin$ su!!lies on he subsiue com!onen !ah hen
+) Sar ne% !lanned orders do%n he !rimary com!onen !ah#
Be are no seein$ se! * ha!!en a all# Our undersandin$ &rom Oracle is ha i& you ha"e
a lar$e amoun o& e?isin$ su!!lies &or he !rimary com!onen5 he en$ine may no ne
any subsiue su!!lies a all#
E2 For he !iece !ar issue5 iem PBF;;*<#PPKs 8iem id2 1,,) !lannin$ $rou! id is Dero#
Bu no demands belon$ o his !lannin$ $rou!# So he on hands %ere le& unused#
S2 Correc he !lannin$ $rou! id#
P2 Bu$ *(-11*/ 8<*) 3 OPTIMILED P6AN DOESNKT CA6CU6ATE RI'>T USIN'
A6TERNATE BOMEROUTIN'ESUBSTITUTES
E2 This issue is ri$$ered because SCO im!licily !enaliDes he use o& subsiues more
han usin$ alernae BOMErouin$s#
>ere5 iem (PMU3/;*- has an on3hand in"enory o& (;;; unis ha can be
de!leed eiher2
()as a subsiue com!onen 8as in he !rimary BOM)
*)or as a !rimary com!onen 8as in some alernae BOMs)
Since usin$ alernae BOMErouin$s is !re&erable o usin$ subsiue com!onens in SCO5
he oucome is o!ion *)# he remainin$ demand o& (*+ unis &or iem N(PMU3(B>(3
TA(N 89((*+3(;;;) is hen !roduced usin$ he !rimary BOM#
S2 Decrease he "alue o& he !enaly &acor &or usin$ subsiues# A "alue o& ;#/O;#1 %ould
be reasonable 8de&aul "alue9()#
PARAMETERS
Parameers ha can a&&ec he oucome o& subsiuion2
ASCP
End Iem Subsiuion Se @ For an o!imiDed !lan5 he !arameer Use End Iem
Subsiuion canno be se i& his is no !o!ulaed#
Use End Iem Subsiuion
Consrained Plan
En&orce Demand Due Daes
En&orce Ca!aciy Consrains
O!imiDe
Ma?imiDe Plan Pro&i @ I& his is se oo hi$h and he Subsiue coss more han he
Primary hen subsiuion %ill no occur#
Ma?imiDe On3ime Deli"ery @ I& his is se oo lo% in relaion o Ma?imiDe Plan Pro&i
hen subsiuion %ill no occur#
Demand 6aeness P 3 I& his is se oo lo% in relaion o Ma?imiDe Plan Pro&i hen
subsiuion %ill no occur#
In"enory Carryin$ Coss
INAENTOR7
Coss = Carryin$
MPSEMRP !lannin$ = Subsiuion Bindo%
Bhile subsiuions are !ar o& re$ular business !rocess5 subsiuions done oo
&ar ahead o& demand mi$h no be a!!ro!riae# For e?am!le5 i& you &ind a
subsiue su!!ly &our %ee0s a%ay &rom demand5 you may no %an o
subsiue as you may ha"e a $ood chance o& !roducin$ su!!ly &or he
demanded iem in he ne? hree %ee0s#
A subsiuion %indo% allo%s you o limi he ime &rame &or he subsiuion#
7ou can de&ine he subsiue %indo% &or an iem usin$ iem aribue &orm in
Oracle In"enory# The subsiuion %indo% is e&&eci"e in he &or%ard
direcion &rom e"ery demand# All subsiue su!!lies !rior o demand are
eli$ible &or subsiuion# Please noe ha he subsiuion %indo% is a!!licable
only &or subsiuionF i& you are nein$ su!!ly and demand &rom he same
iem5 he subsiuion %indo% does no a!!ly#
Iem Relaionshi!s2
Parial Ful&illmen
All Cusomers
COST
The acual cos o& he iem %ill a&&ec %heher or no a subsiuion a0es !lace#