Item Substitution

With substitute items, you can predefine valid alternates for an item to use when that item is unavailable. Using PeopleSoft Inventory, when an ordered item is unavailable (either temporarily or permanently), the proper replacement item is automatically substituted to fill the order. When using substitute items with PeopleSoft Manufacturing, PeopleSoft Supply Planning automatically suggests the substitute item when the original is in short supply. You can define substitute items at three levels:

Field or Control	Description
Item Definition (Item SetID level)	This level is primarily used for PeopleSoft Purchasing, and is the default for the business unit level substitutions.
Item Attributes by Unit (BU/Item level)	This level is used by PeopleSoft Manufacturing and Inventory, and as a default for setting up BOM/EBOM level substitutions. Substitute information appears by default (optionally) at this level from the SetID level.
Maintain BOMs/EBOMs (BOM/EBOM level)	This level is used by PeopleSoft Manufacturing for all item substitutions. Information at this level appears from the business unit (BU) level.

You can define substitutes for an item in the Item Definition and Item Attributes by Unit pages and use them as defaults when maintaining components on a BOM. When defining substitutes, you can specify start and end dates, as well as a conversion factor. The conversion factor defines how many of the substitutes are required to replace the original item. You can set a priority by which the substitute item with the highest priority or lowest number is substituted first in the PeopleSoft Supply Planning solvers.

Using the Item Definition pages, you can define substitutes for an item. You can define user security and limit access to those individuals permitted to define the substitutes.

You have the option to push the item level substitutes to the Item/BU level. If you create an effective date for a substitute, the item can only be substituted within the effective to obsolete date range.

Use the BOM Maintenance Substitute page to define substitutes for BOM components. The system calculates the quantity based on the conversion factor specified (if defined at the item level) and the original item's quantity per.

You can copy the substitute list from the item attributes at the business unit level to the BOM/EBOM level. This functionality isn't available if substitutes don't exist at the BU level.

BOM inquiries include the list of substitutes for each component. Additionally, you can search for components defined as substitutes using the Component Where Used Inquiry.

When copying and transferring BOMs and EBOMs, you can also copy and transfer the substitute list for the BOM/EBOM components. Additionally, mass maintenance on the substitute list is supported.

PeopleSoft Supply Planning enables you to set the level of substitution that occurs during solving. Define these settings at the BU level:

Field or Control	Description
Allow Substitution	Denotes whether the solvers can fulfill the production component demand of an item with a defined substitutes available supply.
Create Substitute Supply	Determines whether the solvers can create new supply for substitute components to resolve constraints. If this option is not checked, the substitute algorithm may only use on-hand quantities. This option is only possible if substitutes are allowed in the BU.
Check Substitute First	Determines whether the solvers will attempt to use substitute components before using alternate sourcing options. If the flag is not checked, the solver checks alternate sourcing options first before trying to use substitutes to resolve a constraint failure. This option is only possible if substitutes are available for the BU.

PeopleSoft Supply Planning passes the list of valid substitutes to the planning engine. When the projected on-hand quantity of the primary item cannot meet the demand, the feasible and enterprise feasible solvers can use substitutions when creating new planned production, if these criteria are met:

• You selected the Allow Item Substitution option on the BU group definition.

• You selected options for allowing substitutions during the running of the corresponding solver.

• No partially completed operations exist for the item.

• Items have not been issued for the operation.

• Item substitution is not frozen for the order.

When a production ID or production schedule is identified as frozen for substitutes, no substitution is performed. Solvers use substitutions for dependent demand only. They do not use substitutions for end items, such as sales orders, transfers, or forecasts. Solvers consider substitute items (all of the items effective for the period considered) according to the order of their priority.

Note:

PeopleSoft Supply Planning assigns higher low-level codes to substitute items rather than to primary items. This ensures that primary items are planned before substitute items.

The substitute item projected quantity on hand must meet the total demand of the substitute item quantity needed for each primary item multiplied by the conversion factor. The solvers do not use partial substitutions. If the solvers cannot meet this demand with substitutions, they plan supply for the primary item.

Note:

The material solver performs substitutions only when a component is beyond its phase-out date and there is a dependent demand for the component.

Once a substitution occurs, the original item required and the substitute item are received and applied. When the system creates the component list, substitute items are distinguished from the original required component.

Using PeopleSoft Manufacturing, you can make manual substitutions during the picking process and when recording component consumption. You can also indicate a substitute on the component list in advance, viewing the list of valid substitutes for that component. Alternatively, you can request a list of valid substitutes if insufficient supply exists for the original item when generating a production pick plan. During the review plan process, you can indicate that a substitute item was picked, rather than the original.

When recording completions and scrap, you can indicate a substitute item was consumed. You can also freeze the component list to prevent further substitutes from occurring when the next planning optimization occurs.