Component Item Substitution in Oracle ASCP

Objective:

This blog will help in understanding the component item substitute planning using oracle ASCP.

Business Requirement:

To consider the similar component item supplies before suggesting a planned order for the Raw materials. The FG can also be built by using these substitute components. If no supplies exist on BOM components, the planning engine has to check for the substitute item supplies if exists.

BOM Structure:

Let us consider the FG item 324-000694-02R-PEG for the illustration. It has some demand in the form of forecast.

Below is the BOM Structure

Business Scenario:

No supply exists on the main BOM Components. But there is supply on item 319-000024-01. So, the planning should consider it to fulfill the FG demand instead of suggesting a planned order for 319-000023-01

Setup & Process Flow:

Let us define the BOM first

Login into Oracle -> Go to Bills of Materials Responsibility ->Bills-> Define the required Bill of materials.

351-000340-01 is a sub assembly of FG 324-000694-02R-PEG.

Mention the quantity, inverse usage, planning percent, yield etc.

Now define the next level BOM for sub assembly 351-000340-01. This is where we define the substitute component, click on the component 320-000289-01 and then click on Substitutes. Then define the substitute component

Now define the BOM for both 320-000289-01 and 320-000263-01. Their components are last level purchased components

Navigate to Advanced Supply Chain Planning Responsibility -> Run Collections

Before running the collections, all the basis setups like item attributes in item master,

Sourcing rules, assignment sets, forecast data for FG has to be defined in Source system

Check the supplies for Substitute Component BOM item in collected Data

Profile Option: MRP: Include Substitute Components should be set as Yes

Go to plan options:

Plan should be a constrained plan and below decision rule should be enabled

Launch the plan and see the results in workbench

Now, as the component 319-000024-01 has on-hand and PO, the planning engine will not peg the FG demand to 320-000289-01 through level 1 351-000340-01. Instead it will try to utilize the substitute component 320-000263-01 which can be built by the existing supply of 319-000024-01.

Below screenshots will give a clear picture of the above explanation

We can also see the substitute component in item window for item 351-000340-01 -> Components -> Substitutes

Conclusion:

Thus, we can use the substitute component planning in oracle ASCP to meet the business needs where similar items can be utilized to fulfill the FG demand.