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:

AC1.png

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

AC3.png

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

AC4.png

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

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

/wp-content/uploads/2014/02/ac00_380097.png

MD04 Stock Requirement list

AC5.png

Step 2: Run MRP(MD02)

MRP executed for FERT M-800 in MD02

AC6.png

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.

AC7.png

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

AC8.png

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

AC9.png

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

AC10.png

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)

AC11.png

AC12.png

AC13.png

  Step 5 :Reservation List (MB24)

AC14.png

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:

E1.png

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

E2.png

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

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

CC1.png

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.
CC2.png

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

CC3.png

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:

D1.png

Step 3: Stock Requirement List:

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

CC5.png

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.

D2.png

Step 5: Reservation List :

Reservation list is displayed below.

D3.png

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.

D4.png

Reservation List for Priority 2 material is displayed below:

D5.png

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.

Documentation Referred:


Alternative Items (SAP Library – Production Orders (PP-SFC))

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6 Comments

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  1. Krishnendu Das

    Hi Ramgiri,

    Good document 🙂 . If I am not wrong, I have seen a similar document/blog for Alternative Items in SDN before a month ago.

    Regards,

    Krishnendu.

    (0) 
    1. Ramagiri Srinivas Rao Post author

      Hi Krishnendu,

      Thanks. This document is based on my experience in one of the project where i implemented alternative items conept with strategy 1 in 2010. As of now bit free posted the content.

      Regards,

      Ramagiri

      (0) 
  2. Nassar fathy

    Dear

    I want Know the answer of this issue “

    I have known something about PP alternative Group and alternative item functions,

    but i am not sure whether SAP whether SAP PP supports following business scenario. Anyone ‘s responses will be highly appreciated.

    Here is the business requirement:

    Material A is a component of FG,

    And material B can be an alternative item for A when A is in a shortage.

    let’s say the stock of A is 10, the stock of B is also 10.

    And the requirement for A is 12,

    Can system automatically suggest in production order processing that 10 pieces of A and 2 pieces of B should be used in the prod order?

    PS: if A has enough stock, no reservation for B should be proposed by system.

    Please help. and thanks in advance!

    alternative materials in PP

    i faced same problem now in my business

    (0) 
  3. Subrahmanyam B

    Hello all,

    What happens if both components are at shortage ? How system generates the reservations (considering strategy-2) and effect on COGI entries.

    Regards

    Subbu

    (0) 

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