Concept of Alternative Item group

functionality in BOM
Use of Alternative Items:
When there are several alternative components in an assembly, you can enter these in the bill of material and
combine them by grouping the alternative items.These alternative items are taken into account when exploding the
BOM during the planning run and when reservations are generated against orders.
Additional Checks:

An alternative item cannot also be a co-product

Discontinuation data (Discontinuation data function key) is not supported for alternative items

If an alternative item is defined as a material to be discontinued in its material master, you see
a warning when you enter the alternative item group in the BOM: When the BOM is processed in
related application areas (for example, MRP), the alternative item overrides the discontinuation data.

An item in an alternative item group cannot be a phantom assembly

Data to be maintained in BOM:

Priority : Defines the priority of the item within an alternative item group. This determines the

priority for planned withdrawal of items.

Strategy: Strategy will determine how selection of the item for planned withdrawal is
controlled within the alternative item group.Strategy should be the same for all alternative items in an
alternative item group.If the value 2 (100% check) is defined for the strategy, the first material in the

defined priority sequence for which sufficient quantities are available is reserved.
Usage Probability: MRP plans these alternative material components according to probability
of use.Percentage is entered to show the probability of using an object in production. Material
requirements for the BOM components are planned according to the usage probability. The planned
withdrawal for the production order is based on reservation lists. These lists are based on the priority
and strategy for the alternative item.
Process Steps:

Maintain PIR for FERT material in MD61

Run MRP (MD02)

Check Stock Requirements List (MD04)

Convert Planned Order to Production Order ( CO40 or CO01)

Reservation List (MB24)

Scenario 1: What is the impact on MRP and Reservation List if Master data like different
priority, strategy 1 and different probability % is maintained for alternative items in BOM.

Conclusion : When alternative item strategy is maintained as 1(Manual maintenance/by

usage pr) in MRP Run and Reservations stock availabilty and does not have any role.
Probability % maintained will drive for procurement proposals quantity and reservations
will be generated on probability % only.
Master data Maintained for Scenario 1 :
FERT Material (M-800) , ROH Alternative 1 Material (T-T029),ROH Alternative 2 Material (100-210) are created.
BOM maintained for FERT with two ROH alternative materials as given in below screen shot:

For Alternative material 1 (T-T029) - Maintained Priority - 1, Strategy - 1, Usage Probability - 70 are maintained as
given below:

For Alternative material 2 (100-210) - Maintained Priority - 2, Strategy - 1, Usage Probability - 30 are maintained as
given below:

Step 1: Maintain PIR for FERT Material ( MD61):

PIR maintained for the FERT Material M-800 in MD61 as shown below

MD04 Stock Requirement list

Step 2: Run MRP(MD02)

MRP executed for FERT M-800 in MD02

Step 3: Stock Requirements List:

After MRP executon, planned order generated for FERT M-800 material for qty 100 as PIR maintained for 100 qty.

For Alternative 1 Raw material T-T029 PR generated for qty 140 as the below calculation
Actual Qty = BOM Qty 2 X FERT PIR Requirement qty (100) = 200
Probability % maintained as 70. Hence system should calculate 200 * 70 /100 = 140

For Alternative 2 Raw material 100-210 PR generated for qty 60 as the below calculation
Actual Qty = BOM Qty 2 X FERT PIR Requirement qty (100) = 200
Probability % maintained as 30. Hence system should calculate 200 * 30 /100 = 60

Step 4 : Creation of Production Order for FERT material M-800:

Production Order created for FERT material M-800 for 100 qty as displayed below

Production Order - Component Overview:

System generated reservation for alternative materials 1(T-T029) and alternative material 2(100-210) for qty 140 and
60 as displayed below.
Priority does not have any impact on reservation when strategy is maintained as 1 (Manual maintenance/by usage pr)

Step 5 :Reservation List (MB24)

Scenario 2: What is the impact on MRP and Reservation List if Master data like different
priority, strategy 2 and different probability % is maintained for alternative items in BOM.
Conclusion : When alternative item strategy is maintained as 2(100% check) in MRP Run
system will generate procurement proposals as per the Probability % maintained. In case
of reservations based on priority stock availability will be checked for the alternative
materials and accordingly system will create reservation.
Master data for Scenario 2:
For Alternative material 1 (T-T029) - Maintained Priority - 1, Strategy - 2, Usage Probability - 70 are maintained as
given below:

For Alternative material 2 (100-210) - Maintained Priority - 2, Strategy - 2, Usage Probability - 30 are maintained as
given below:

Step 1: MD02 MRP run for Finsihed Material M-800

Planned order created for FERT material M-800 as displayed below:

For Alternative 1 Raw material T-T029 PR generated for qty 140 as the below calculation
Actual Qty = BOM Qty 2 X FERT PIR Requirement qty (100) = 200
Probability % maintained as 70. Hence system should calculate 200 * 70 /100 = 140

In case of MRP probability % is considered for generating Purchase Requisitions.

Similarlly for Alternative 2 Raw material 100-210 PR generated for qty 60 as the below calculation
Actual Qty = BOM Qty 2 X FERT PIR Requirement qty (100) = 200
Probability % maintained as 30. Hence system should calculate 200 * 30 /100 = 60

Step 2 : MB1C Stock Posting for Alternative materials:

Inorder to check the priority functionality incase of stock availability, manually posted stock for both the alternative
materials as given below:

Step 3: Stock Requirement List:

Stock requirement lis t of Priority 1 maintained alternative material (T-T029) is displayed as shown below

Step 4: Create Production Order :

Production order created for FERT material M-800. In case of strategy 2, system first checks the priority and for
priority 1 material system checks the stock avialabilty. Stock is available for both the alternative materials, but system
proposed reservation for priority 1 material T-T029 for 200 qty as shown below. ie; Probability % is not
considered.

Step 5: Reservation List :

Reservation list is displayed below.

FAQ'S:
1. What happens if the stock of priority 1 material is not available, but stock of priority 2
material is available?
Solution:
Stock of priority 1 material (T-T029) = 100 qty
Stock of priority 2 material (100-210) = 500 qty
As displayed below, system created reservation for priority 2 material as stock is available only for priority 2 material.

Reservation List for Priority 2 material is displayed below:

2. Can we maintain Pobability % as 0 (ZERO) for any one of alternative material ?

Solution:
Yes you can maintain. System will throw warning message but it will be saved.

3. What happens if probability % is maintained as 0 (ZERO) for any one of alternative

material ?
Solution:
MRP will not plan any requirement for that material and in order also system will not generate any reservation
quantity.