Configure Constraints and Decision Rules

Configure constraints and decision rules for your constrained supply plan on the Plan Options page, Supply tab, Constraints and Decision Rules subtab. You can access the Constraints and Decision Rules subtab in a Supply Planning or a Demand and Supply Planning work area.

When configured, the planning process evaluates alternate sources, alternate work definitions, alternate resources, and substitute components to ensure that supply orders meet demand on time.

Perform these steps to configure the constraints and decision rules for your constrained supply plan.

Access the Constraints and Decision rules subtab:
1. In a Supply Planning or Demand and Supply Planning work area, open a constrained supply plan.
2. Click Actions and then select Edit Plan Options.
3. Click the Supply tab.
4. Click the constraints and Decision Rules subtab.
In the Capacity Constrained Resources drop-down list, select how you want your plan to apply capacity constraints to resources. The two types of capacity constrained resources are:
- All resources: The plan treats every resource as a potential constrained resource and applies capacity constraints on all resources when calculating the plan output.
- Bottleneck resources only: the plan only considers resources that have the Bottleneck attribute set to Yes as a capacity constrained resource.
  
  Note: The resource attribute Bottleneck isn't a source attribute. It can be specified on the Resources page. The default value for the bottleneck attribute is set to No.
Select Apply Supplier Capacity Constraints to have the plan constrain by supplier capacity when generating purchase recommendations.

In the Decision Rules section, select the alternate sources of supply that the plan can evaluate if the primary source of supply can't meet demand on time.

This table describes the decision rules that you can use in your constrained plan. The table also describes how the planning process evaluates each alternative to ensure that supply orders meet demand on time.

Decision Rule	Functionality
Use alternate resources	The planning process uses alternate resources to avoid overloads on a primary resource.
Use substitute components	The planning process uses substitute components to minimize demand lateness or capacity overloads. Existing supplies on primary components are used first to satisfy demand on time before the planning process selects substitutes. You can have multiple substitute components for a primary component. Supply Planning also minimizes excess inventory at the end of the planning horizon.
Use alternate item structures and work definitions	The planning process uses alternate item structures and work definitions when material or resource (or both) in the primary work definition and item structure are causing delay, or having overloads, in meeting demand on time. You can define priorities for alternate item structures and work definitions. The planning process uses alternate item structures and work definitions to meet demand on time. You can define priorities for alternate item structures and work definitions.
Use alternate suppliers and source organizations	The planning process uses alternate suppliers and source organizations to meet demand on time. By default, the planning process tries to minimize using alternate sources and alternate supplies to meet demand on time. However, if it's necessary to use alternate sources or alternate suppliers, then the planning process uses the priority rank that's assigned to select the alternates. Define the priority of alternate sources and alternate supplies in the sourcing rule in Supply Planning.

Click Save and Close.