Examples of End Item Substitution and Supersession
How end item substitution and supersession are performed depends on your selection in the Use of Related Items Supplies field on the General subtab on the Supply tab on the Plan Options page for your replenishment plan.
The sections in this topic provide examples for end item substitution or supersession when you select Maximize use of related items to minimize new replenishments or Use related items only when necessary to avoid stockouts in the Use of Related Items Supplies field.
Example for Maximizing Use of Related Items to Minimize New Replenishments
When you select Maximize use of related items to minimize new replenishments in the Use of Related Items Supplies field, the shortage of an item is calculated as follows:
- If the Beginning Inventory Position is less than or equal to the Minimum Quantity or ROP Quantity, the shortage is calculated as Beginning Inventory Position - Minimum Quantity - 1 or Beginning Inventory Position - ROP Quantity - 1.
- If the value of the Minimum Quantity or ROP Quantity is null, when the Beginning Inventory Position is less than zero, the shortage is equal to the Beginning Inventory Position.
The excess is calculated as the least positive value for Projected Available Balance - Minimum Quantity - 1 or Projected Available Balance - ROP Quantity - 1 for a day in the excess window.
In this example, we have two items, A and B, at organization WH1. Item B is a substitute for item A or the item that supersedes item A. The excess window is 1 day. The policy type is min-max planning.
On Day 1, the data for item A is as depicted in this table:
| Measures for Item A | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 10 |
| Total Supply | 40 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 25 | 20 | 10 | 0 | -10 |
| Beginning Inventory Position | 25 | 20 | 10 | 0 | -10 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 16 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
On Day 1, the data for item B is as depicted in this table:
| Measures for Item B | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 23 | 8 | 10 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 90 | 85 | 62 | 54 | 44 |
| Beginning Inventory Position | 90 | 85 | 62 | 54 | 44 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 49 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
For item A, the Initial Shortage for Substitution measure is -16 (25 - 40 - 1).
For item B, the Initial Excess for Substitution measure is 49 (90 - 40 - 1).
On Day 1, the data after end item substitution or supersession for item A is as depicted in this table:
| Measures for Item A | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 10 |
| Total Supply | 56 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 41 | 36 | 26 | 16 | 6 |
| Beginning Inventory Position | 41 | 36 | 26 | 16 | 6 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 16 | 0 | 0 | 0 | 0 |
| Substitute Supply | 16 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
On Day 1, the data after end item substitution or supersession for item B is as depicted in this table:
| Measures for Item B | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 31 | 5 | 23 | 8 | 10 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 74 | 69 | 46 | 38 | 28 |
| Beginning Inventory Position | 74 | 69 | 46 | 38 | 28 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 49 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 16 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
For item A, the Substitute Supply measure is 16.
For item B, the Substitute Demand measure is 16.
On Day 2, the data for item A is as depicted in this table:
| Measures for Item A | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 10 |
| Total Supply | 56 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 41 | 36 | 26 | 16 | 6 |
| Beginning Inventory Position | 41 | 36 | 26 | 16 | 6 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 16 | 5 | 0 | 0 | 0 |
| Substitute Supply | 16 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
On Day 2, the data for item B is as depicted in this table:
| Measures for Item B | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 31 | 5 | 23 | 8 | 10 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 74 | 69 | 46 | 38 | 28 |
| Beginning Inventory Position | 74 | 69 | 46 | 38 | 28 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 49 | 28 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 16 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
For item A, the Initial Shortage for Substitution measure is -5 (36 - 40 - 1).
For item B, the Initial Excess for Substitution measure is 28 (69 - 40 - 1).
On Day 2, the data after end item substitution or supersession for item A is as depicted in this table:
| Measures for Item A | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 10 |
| Total Supply | 56 | 5 | 0 | 0 | 0 |
| Projected Available Balance | 41 | 41 | 31 | 21 | 11 |
| Beginning Inventory Position | 41 | 41 | 31 | 21 | 11 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 16 | 5 | 0 | 0 | 0 |
| Substitute Supply | 16 | 5 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
On Day 2, the data after end item substitution or supersession for item B is as depicted in this table:
| Measures for Item B | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 31 | 10 | 23 | 8 | 10 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 74 | 64 | 41 | 33 | 23 |
| Beginning Inventory Position | 74 | 64 | 41 | 33 | 23 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 49 | 28 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 16 | 5 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
For item A, the Substitute Supply measure is 5.
For item B, the Substitute Demand measure is 5.
On Day 3, the data for item A is as depicted in this table:
| Measures for Item A | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 10 |
| Total Supply | 56 | 5 | 0 | 0 | 0 |
| Projected Available Balance | 41 | 41 | 31 | 21 | 11 |
| Beginning Inventory Position | 41 | 41 | 31 | 21 | 11 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 16 | 5 | 10 | 0 | 0 |
| Substitute Supply | 16 | 5 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
On Day 3, the data for item B is as depicted in this table:
| Measures for Item B | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 31 | 10 | 23 | 8 | 10 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 74 | 64 | 41 | 33 | 23 |
| Beginning Inventory Position | 74 | 64 | 41 | 33 | 23 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 49 | 28 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 16 | 5 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
For item A, the Initial Shortage for Substitution measure is -10 (31 - 40 - 1).
For item B, the Initial Excess for Substitution measure is zero (41 - 40 - 1).
On Day 3, the data after end item substitution or supersession for item A is as depicted in this table:
| Measures for Item A | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 10 |
| Total Supply | 56 | 5 | 0 | 0 | 0 |
| Projected Available Balance | 41 | 41 | 31 | 21 | 50 |
| Beginning Inventory Position | 41 | 41 | 31 | 21 | 50 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 16 | 5 | 10 | 0 | 0 |
| Substitute Supply | 16 | 5 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 39 | 0 | 0 |
On Day 3, the data after end item substitution or supersession for item B is as depicted in this table:
| Measures for Item B | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 31 | 10 | 23 | 8 | 10 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 74 | 64 | 41 | 33 | 23 |
| Beginning Inventory Position | 74 | 64 | 41 | 33 | 23 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 49 | 28 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 16 | 5 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
On Day 3, for item A, the Substitute Supply measure is zero because item B doesn't have any excess. Therefore a planned order of 39 units is created on Day 3 for bringing the inventory level to the Maximum Quantity.
Example for Using Related Items Only to Avoid Stockouts
When you select Use related items only when necessary to avoid stockouts in the Use of Related Items Supplies field, the shortage and excess of the item are calculated as follows:
- If the Projected Available Balance for the item on a day is less than zero, the Projected Available Balance is the shortage.
- The excess is calculated as the least positive value for the Projected Available Balance in the excess window.
In this example, we have two items, C and D, at organization WH2. Item D is a substitute for item C or the item that supersedes item C. The excess window is 1 day. The policy type is min-max planning.
On Day 1, the data for item C is as depicted in this table:
| Measures for Item C | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 50 |
| Total Supply | 40 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 25 | 20 | 10 | 0 | -50 |
| Beginning Inventory Position | 25 | 20 | 10 | 0 | -50 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 45 | 0 | 0 | 0 | 0 |
On Day 1, the data for item D is as depicted in this table:
| Measures for Item D | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 23 | 8 | 10 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 90 | 85 | 62 | 54 | 44 |
| Beginning Inventory Position | 90 | 85 | 62 | 54 | 44 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 90 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
For item C, the Initial Shortage for Substitution measure is zero because the Projected Available Balance Measure is 25 and not a negative value. A planned order of 45 units is created on Day 1 for bringing the inventory level to the Maximum Quantity.
For item D, the Initial Excess for Substitution measure is 90.
On Day 5, the data for item C is as depicted in this table:
| Measures for Item C | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 50 |
| Total Supply | 40 | 0 | 45 | 0 | 0 |
| Projected Available Balance | 25 | 20 | 55 | 45 | -5 |
| Beginning Inventory Position | 25 | 65 | 55 | 45 | -5 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 5 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 45 | 0 | 0 | 0 | 0 |
On Day 5, the data for item D is as depicted in this table:
| Measures for Item D | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 23 | 8 | 10 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 90 | 85 | 62 | 54 | 44 |
| Beginning Inventory Position | 90 | 85 | 62 | 54 | 44 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 90 | 85 | 62 | 54 | 44 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 0 |
For item C, the Initial Shortage for Substitution measure is 5 because the Projected Available Balance measure is -5 and a negative value.
For item D, the Initial Excess for Substitution measure is 44.
On Day 5, the data after end item substitution or supersession for item C is as depicted in this table:
| Measures for Item C | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 10 | 10 | 50 |
| Total Supply | 40 | 0 | 45 | 0 | 5 |
| Projected Available Balance | 25 | 20 | 55 | 45 | 0 |
| Beginning Inventory Position | 25 | 65 | 55 | 45 | 0 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 0 | 0 | 0 | 0 | 0 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 5 |
| Substitute Supply | 0 | 0 | 0 | 0 | 5 |
| Substitute Demand | 0 | 0 | 0 | 0 | 0 |
| Planned Replenishments by Order Date | 45 | 0 | 0 | 0 | 70 |
On Day 5, the data after end item substitution or supersession for item D is as depicted in this table:
| Measures for Item D | Day 1 | Day 2 | Day 3 | Day 4 | Day 5 |
|---|---|---|---|---|---|
| Total Demand | 15 | 5 | 23 | 8 | 15 |
| Total Supply | 105 | 0 | 0 | 0 | 0 |
| Projected Available Balance | 90 | 85 | 62 | 54 | 39 |
| Beginning Inventory Position | 90 | 85 | 62 | 54 | 39 |
| Minimum Quantity | 40 | 40 | 40 | 40 | 40 |
| Maximum Quantity | 70 | 70 | 70 | 70 | 70 |
| Initial Excess for Substitution | 90 | 85 | 62 | 54 | 44 |
| Initial Shortage for Substitution | 0 | 0 | 0 | 0 | 0 |
| Substitute Supply | 0 | 0 | 0 | 0 | 0 |
| Substitute Demand | 0 | 0 | 0 | 0 | 5 |
| Planned Replenishments by Order Date | 0 | 0 | 0 | 0 | 31 |
For item C, the Substitute Supply measure is 5. A planned order of 70 units is created for bringing the inventory level to the Maximum Quantity.
For item D, the Substitute Demand measure is 5. A planned order of 31 units is created for bringing the inventory level to the Maximum Quantity.