SAP Advanced Planning and Optimization (SAP APO) provides a suite of options that controls the replacement of one product by another. This entire process is known as product interchangeability. In this article, I focus on how product interchangeability can be used and integrated in SAP APO Global Available-To-Promise (Global ATP) by using rules-based availability checks. Using rules-based availability checks helps to optimize the decision making process between different substitutions using list of defined rules. Different rules can be defined as per business requirements that control how product interchangeability can be carried out smoothly across locations.

Consider an example of a simple supply chain network of a manufacturer consisting of single plant and multiple distribution centers. Figure 1 diagrams the supply chain network that has been considered for discussion in this article. Products are manufactured at PLANTA and shipped to the distribution centers DC01 and DC02 based on demand and corresponding supply. Product B1 is an old product that is sold by a manufacturer and product B2 is a superior, advanced version of the same product. You need to plan to phase out Product B1, plan for Product B2, and determine a proper planning strategy.

Figure 1

An example of a supply chain network

Configure Master Data Objects Needed in SAP APO

• Locations
• Products

Locations

To configure the master data for locations, execute transaction code /SAPAPO/LOC3. For my example, create Location PLANTA of location type (1001) and DC01 and DC02 of location type (1002) as shown in Figures 2, 3, and 4. Steps to create the location are not included as it is assumed that readers know how to set up master data in SAP APO. These screenprints just display the location and location type via transaction code /SAPAPO/LOC3.

Figure 2

Location PLANT A

Figure 3

Location DC01

Figure 4

Location DC02

Products

To configure master data for products, execute transaction code /SAPAPO/MAT1. For my example, create products (e.g., PROD-B1 and PROD-B2) at locations PLANTA, DC01, and DC02. Figure 5 shows one of the products PROD-B1 at DC01.

Figure 5

PROD-B1 at DC01

Product View

To see the requirements, receipts, and stock of a product available at particular location, execute transaction /SAPAPO/RRP3. In the screen that appears, populate the Plng Version (planning version), Product, and Location fields as shown in Figure 6. Press Enter to save your entries.

Figure 6

Product View

Configure Interchangeability-Specific Master Data in Global ATP

In this section I explain the steps to configure interchangeability-specific master data in Global ATP. These steps are creating an interchangeability master data location list, creating an interchangeability master data location determination procedure, creating a supersession chain, and creating interchangeability master data for the product substitution procedure.

Location List

Locations are grouped together in a location list and are used to combine a set of locations. To create an interchangeability master data location list, execute transaction /INCMD/UI. In the screen that appears, click the create icon highlighted in Figure 7.

Figure 7

Location list

In the same screen, select Group Type as Location List from the drop-down list of options. Enter a name in the Group field and Group Description fields (e.g., LL1). Click the add icon highlighted in Figure 8.

Figure 8

Location List header

In the new row that is created, enter the name of the External Desc. Plant (e.g., DC01) and press Enter. After the Description field is autopopulated, click the add icon again (Figure 9).

Figure 9

Add items to the location list

In the row that is created, enter the name External Desc. Plant (e.g., DC02) and press Enter. The description is autopopulated. After you enter the details, click the release flag icon and then click the Model Assignment button (Figure 10).

Figure 10

Save the location list

In the next screen, select Model 000 on the right side and click the arrow icon to move it to the left side as shown in Figure 11.

Figure 11

Assign the model to the location list

In Figure 12, you can see that Model 000 is now assigned and present under Interchangeability Group LL1. Click the save icon to save the changes.

Figure 12

Model assigned to the location list

Location Determination Procedure

An interchangeability group is for location substitution (i.e., Location List is combined in the Location Determination procedure). To create an interchangeability master data location determination procedure, execute transaction code /INCMD/UI. In the screen that appears, click the create icon highlighted in Figure 13.

Figure 13

Location determination procedure

In the same screen, go to the Group Type field and select Location Determination Procedure from the drop-down list of options (Figure 14). Enter a name in the Group and Group Description fields (e.g., LP1) and then click the add icon.

Figure 14

Header for the location determination procedure

In the new row that is created, enter the name of the subgroup that you created in the above section in the Subgroup column (e.g., LL1) and press Enter. The Subgroup Description field is autopopulated. After you enter the details, click the release flag icon and then click the Model Assignment button as shown in Figure 15.

Figure 15

Save the location determination procedure

Similar to the step in which you created the Location List, assign Model 000 to the Interchangeability Group LP1. Click the save icon to save the changes as shown in Figure 16.

Figure 16

Model assigned to the location determination procedure

Supersession Chain

Creation of a supersession chain is described in detail in the first part of the article on product interchangeability in SNP. Figure 17 is an example of the supersession chain. In the Header tab, you can see that the name of the supersession chain is SC1. In the Location-Independent Attributes section, the field in the Pre. Prod (predecessor product) column is Product-B1, and the Suc. Prod. (successor product) column is Product-B2. The field in the Valid-from column is 12/01/2015, and the field in the Use-up column is No (Figure 17).

Figure 17

Supersession chain header

In the Location tab, you can see this supersession chain is assigned to two locations: DC02 and DC01 (Figure 18).

Figure 18

Supersession chain locations

Finally, the supersession chain is saved and assigned to Model 000 as shown in the previous section for Location List and Location Determination procedure.

Product Substitution Procedure

The interchangeability group for product substitution (i.e., supersession chain) is combined in the product determination procedure. To create interchangeability master data for the product substitution procedure, execute transaction /INCMD/UI. In the screen that appears, click the create icon highlighted in Figure 19.

Figure 19

The product substitution procedure

In the same screen, select Product Substitution Procedure from the drop-down list of options in the Group Type field. Enter a name in the Group and Group Description fields (e.g., PS1) and then click the add icon highlighted in Figure 20.

Figure 20

The product substitution procedure Header tab

In the new row that is created, enter the name of the subgroup that you created in the above section on supersession chain in the field in the Subgroup column (e.g. SC1). Press Enter. The Subgroup Description is autopopulated. After you enter the details, click the release flag icon and then click the Model Assignment button as shown in Figure 21.

Figure 21

Save the product substitution procedure

Just as you did in the steps in the above sections, assign Model 000 to the Interchangeability Group PS1. Click the save icon to save the changes (Figure 22).

Figure 22

Model assigned to the product substitution procedure

Execute Rules-Based Simulation to Carry Out Product Interchangeability

In the above section you learned how to define master data to use product interchangeability. Rules-based simulation helps you to visualize how this master data can be used using a set of rules.

Rule Control

Rule control strategies (product strategy and location strategy) control check processing in a single list. To create a rule control, execute transaction /SAPAPO/RBA04. In the screen that appears, select the maintain rule control icon (highlighted in yellow below Overview), and then click the create icon. A new row is populated. In the field under the Control column, enter the name of the control (e.g., RC1), enter a description (e.g., Rule Control) in the field under the Description column, and press Enter (Figure 23).

Figure 23

Rule control header

In the same screen, on the right side you can see Rule Control RC1 is populated. Enter data for the other required fields. For example, in the Product and Location fields, select Start from top of list in the drop-down list of options. In the Qualified Product and Qualified location fields, select No Restriction from the drop-down list of options. Select the radio button named Combine qualified product with all locations, then qualified loc. W. all prods. In the Combination field, select Union from the drop-down list of options. After you click the save icon, click the Rules & substitutions button as shown in Figure 24.

Figure 24

Maintain rule control settings

Rule

After you click the Rules and substitutions button in Figure 24, select the maintain rule icon (highlighted in yellow below Overview in Figure 25), and then click the create icon. A new row is now populated. In the field in the Rule column, enter a name (e.g., RULE1) and enter a description (e.g., Rule) in the field in the Description column. Press Enter.

Figure 25

Rule header

In the same screen, on the right side you can see Rule RULE1 is populated. In the Rule Type field, select Inclusive from the drop-down list of options as shown in Figure 26. Leave the default settings in the other fields and select the Prod. + Loc. Subst. (InC MD) tab.

Figure 26

Rule details

In the refreshed screen, enter a name in the Product Substitutn. Proced. (product substitution procedure) field (e.g., PS1). In the Loc. Determin. Proced. (location determination procedure) field, enter a name (e.g., LP1). In the Rule Control section enter RC1 in the Rule Ctrl. Key (rule control key) field. These names are the names of the procedures you created in the above sections. Now click the Evaluate Rule tab as shown in Figure 27.

Figure 27

Assign master data to the rule

In the Evaluate Rule tab, enter the name of the product and the location that are to be simulated (e.g., PROD-B1 and DC01, respectively). Click the Start Evaluation button as shown in Figure 28.

Figure 28

Rule simulation

In the same screen, you see results of the evaluation and how the system tries to search using the interchangeability master data defined in above steps. Initially, the system searches for PROD-B1 at DC01, followed by DC02.

Figure 29

Results of rule simulation

Configure Rules-Based Availability Check to Use Product Interchangeability

I assume readers know the basics of an availability check and how it is set up in the SAP system. Therefore, I do not go into details of each object, but show the configuration made for each object that is used in rule determination.

To define the objects and configurations related to rules-based availability, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP). In this section, I describe several steps to define and maintain various processes.

Step 1. Define the Check Mode

To define the check mode, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > General Settings> Maintain Check Mode. Click the execute icon beside Maintain Check Mode.

In the screen that appears, you define a new check mode (W50). Populate the fields as shown in Figure 30 and then click the save icon to save your entries.

Figure 30

Check mode saved

Step 2. Maintain the ATP Group

To define the ATP Group, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > Product Availability Check > Maintain ATP Group. Click the execute icon beside Maintain ATP Group. In the screen that appears, define enter T1 in the ATP Group field and populate the other fields as shown in Figure 31. Click the save icon to save your data. Both are default entries that are populated when new the ATP group is defined and is not used in this article.

Figure 31

Maintain details for the ATP group

Step 3. Define the Condition Table

To define the condition table, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > Rules-Based Availability Check > Define Condition Table. Click the execute icon beside Define Condition Table. In the screen that appears, enter 400 (Product/Plant) in the Table field with the Product Number and Plant fields created as shown in Figure 32.

Figure 32

Define the condition table

Step 4. Maintain the Access Sequence

To define the access sequence, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > Rules-Based Availability Check > Maintain Access Sequences. Click the execute icon beside Maintain Access Sequences.

In the screen that appears, enter AS01 in the Access field to create this access sequence. In the Table field enter 400 to assign condition table 400 that you created in step 3 to access sequence AS01. After the assignment you can see the fields Product Number and Plant as shown in Figure 33.

Figure 33

Access sequence defined

Step 5. Maintain the Condition Type

To define the condition type, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > Rules-Based Availability Check > Maintain Condition Type. Click the execute icon beside Maintain Condition Type.

In the screen that appears (Figure 34), enter CT01 in the field in the CTyp (condition type) column and also enter a description in the field under Short Text. In the field in the AcSq column, enter AS01 to assign the access sequence AS01 created in step 4 to condition type CT01. Enter a description under Short Text and press Enter to save your data.

Figure 34

Define the condition type

Step 6. Maintain the Rule Strategy

To define the rule strategy, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > Rules-Based Availability Check > Maintain Rule Strategy. Click the execute icon beside Maintain Rule Strategy.

In the screen that appears (Figure 35), select the Control Data folder and enter RS01 in the Rule Strategy field. In the field in the CTyp (control type) column, enter CT01 (the name of the condition type created in step 5) to assign this condition type to rule strategy RS01. Press Enter to save your entries.

Figure 35

Define the rule strategy

Step 7. Maintain the Rule Strategy Sequence

To define the rule strategy sequence, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > Rules-Based Availability Check > Maintain Rule Strategy Sequence. Click the execute icon beside Maintain Rule Strategy Sequence.

This action displays the screen shown in Figure 36. Select the Control folder and in the Rule Strat. Seq. (rule strategy sequence) field, enter RSS. In the field in the Strategy column, enter RS01 (the name of the rule strategy created in step 6) to assign this rule strategy to the RSS rule strategy sequence and then click the save icon (not shown) to save your data.

Figure 36

Define the rule strategy sequence

Step 8. Assign Rule Strategy Sequence

To assign the rule strategy sequence, execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > Rules-Based Availability Check > Assign Rule Strategy or Rule Strategy Sequence.

In the screen that appears (Figure 37), enter AA in the Tech. Scenario (technical scenario) field, AAAA in the Business Trans. (business transaction) field, and A in the Action Type field. In the Assign Rule Strategy or Rule Strategy Sequence section, enter RSS (the name of the rule strategy sequence RSS created in step 7) in the Rule Strat. Seq. (rule strategy sequence) field as shown in Figure 37.

Figure 37

Assign the rule strategy sequence

Step 9. Create a Rule Determination

To create a Rule Determination, execute transaction /SAPCND/AO11. In the screen that appears (Figure 38), enter the name of the Condition Type created in step 5 (CT01) in the Condition Type field. Press Enter.

Figure 38

Rule determination

In the next screen (Figure 39), enter a name in the Product Number field (e.g., PROD-B1). Make the validity period to be valid from 11/01/2015 to 11/30/2015 and create two rows for plants DC01 and DC02. In the Rule column, assign the Rule created in above section (e.g., RULE1) to plants DC01 and DC02. After you enter all these details, click the save icon.

Figure 39

Rule determination for PROD-B1

In the same screen, follow the same steps to create an entry for PROD-B2 valid from Dec-2015 at DC01 and DC02 and save the changes as shown in Figure 40.

Figure 40

Rule determination for PROD-B2

Execute ATP Simulation in SAP APO Using Rules-Based Availability and Product Interchangeability Directly

There are two ways to use interchangeability master data: using product interchangeability directly and using product interchangeability via rules. In this section, I explain how to use interchangeability master data directly. When you use product interchangeability directly, rules are not used, the system directly uses the interchangeability master data to carry out substitution, and only product substitutions are allowed.

Check Instruction Settings to Use Product Interchangeability Directly

Based on the combination of check mode and business event, check instructions are defined. To complete this step execute transaction code SPRO and follow menu path Advanced Planning and Optimization > Global Available-to-Promise (Global ATP) > General Settings > Maintain Check Instructions. Click the execute icon beside Maintain Check Instructions.

In the screen that appears (Figure 41), make a new entry in the Check Mode field (e.g., W50) and Business Event field (e.g., A). The other fields are default entries that you do not change. In the Rules-Based ATP Check section, define the important configuration related to using rules-based availability and product interchangeability directly.

Figure 41

Check instruction settings to use product interchangeability directly

In the product view, you can see PROD-B1 at DC01 has stock of 250 while PROD-B2 at DC01 has no stock as shown in Figures 42 and 43. (To access the product view, read the instructions in the “Product View” section.)

Figure 42

Initial scenario for product B1 at DC01

Figure 43

Initial scenario for product B2 at DC01

To run ATP simulation, execute transaction code /SAPAPO/AC04. In the screen that appears (Figure 44), enter parameters in the following fields:

• Product (e.g., PROD-B1)
• Location (e.g., DC01)
• Check Mode (e.g., W50)
• Business event (e.g., A)
• Date (e.g., 11/30/2015)
• Requirement Quantity (e.g., 200)
• Unit (e.g., ST)

Figure 44

Run an ATP simulation

After you have entered your data, click the execute icon.

In the pop-up screen that appears, enter the parameters as highlighted in Figure 45 and click the execute icon.

Figure 45

Enter parameters for rules-based check execution

In the next screen (Figure 46), you can see the requirement of 200 is confirmed as PROD-B1 at DC01 had stock of 250 as shown in Figure 42. Close the screen.

Figure 46

ATP simulation results

In the main screen, change the material available date to Dec 30 and click the execute icon as shown in Figure 47.

Figure 47

Run ATP simulation

In the next screen (Figure 48), you can see that requirement of 200 is not confirmed because in the supersession chain you have defined the Use-up strategy as No and the Valid Date is 1 Dec 2015. Therefore, PROD-B1 is no longer valid after 1-Dec-2015 and with Use-up as No, it can’t use the existing stock of 100 after 1-Dec-2015. In the above scenario, the requirement of 200 was on 12/30/2015 and since PROD-B1 is no longer valid on that date and can’t be used, its stock requirement was shifted to PROD-B2 at DC01. However, since PROD-B2 at DC01 does not have any stock as shown in Figure 43, the quantity of 200 quantity was not confirmed here either.

Figure 48

ATP simulation results

In the supersession chain defined in Figure 17, Use-up is changed to Yes and saved as shown in Figure 49.

Figure 49

Supersession chain with Use-up as Yes

Now run the simulation via transaction code /SAPAPO/AC04 again as shown in Figure 47. In the next screen you can see that the quantity of 200 is now confirmed as you have changed Use-up to Yes, so even after 1-Dec-2015 any requirement for PROD-B1 at DC01 can use the existing stock of 200 as shown in Figure 50.

Figure 50

ATP simulation results

Now run the simulation by changing the Requirement Quantity to 300 and click the execute icon as shown in Figure 51.

Figure 51

Run the ATP simulation after changing the Requirement Quantity

In the next screen (Figure 52), you can see that out of the requirement of 300, 250 is confirmed at DC01. After that the system tried to confirm the remaining 50 for PROD-B2 at DC01 as per the supersession chain, but since PROD-B2 at DC01 has no stock, it was not confirmed.

Figure 52

ATP simulation results

Execute ATP Simulation in APO Using Rules-Based Availability and Product Interchangeability Using Rules

This is the second option to use interchangeability master data using rules. In this case, the system applies condition records to determine rules processes in rules-based ATP. So here rules are read from the product substitution and location determination procedure.

Check Instruction Settings to Use Product Interchangeability using Rules

In order to use this option, you need to modify the Check Instruction defined in Figure 41 to a new setting as shown in Figure 53. Importantly, the section highlighted in green is the major difference in the configuration. Click the save icon to save the changes made.

Figure 53

Check instruction to use product interchangeability with rules

In the product view, you can see PROD-B1 at DC01 has stock of 250; PROD-B1 at DC02 has stock of 100, while PROD-B2 at DC01 and DC02 has no stock as shown in Figures 54 to 57.

Figure 54

Initial scenario for product B1 at DC01

Figure 55

Initial scenario for product B1 at DC02

Figure 56

Initial scenario for product B2 at DC01

Figure 57

Initial scenario for product B2 at DC02

To run ATP simulation, execute transaction code /SAPAPO/AC04. In the screen that appears (Figure 58), enter parameters in the following fields:

• Product (e.g., PROD-B1)
• Location (e.g., DC01)
• Check Mode (e.g., W50)
• Business event (e.g., A)
• Date (e.g., 11/30/2015)
• Requirement quantity (e.g., 350)
• Unit (e.g., ST)

Figure 58

Run ATP simulation

Click the execute icon.

In the next screen, you can see that out of the requirement of 350 quantity, 250 are confirmed for PROD-B1 at DC01, while the remaining 100 are confirmed at DC02 as shown in Figure 59.

Figure 59

ATP simulation results

Now again run the simulation for requirement of 450 quantity as shown in Figure 60.

Figure 60

Run ATP simulation

In the next screen (Figure 61), you can see that out of the requirement of 450 quantity, 250 are confirmed for PROD-B1 at DC01, and 100 are confirmed at DC02. For the remaining 100, the system tried to check for PROD-B2 at DC01 and DC02, but since both have zero stock, it was not able to confirm as shown in Figure 61.

Figure 61

ATP simulation results

Alok Jaiswal

Alok Jaiswal is a consultant at Infosys Limited. He has more than six years of experience in IT and ERP consulting and in supply chain management (SCM). He has worked on various SAP Advanced Planning and Optimization (APO) modules such as Demand Planning (DP), Production Planning/Detailed Scheduling (PP/DS), Supply Network Planning (SNP), and Core Interface (CIF) at various stages of the project life cycle. He is also an APICS-certified CSCP (Certified Supply Chain Planner) consultant, with exposure in functional areas of demand planning, lean management, value stream mapping, and inventory management across manufacturing, healthcare, and textile sectors.   If you have comments about this article or publication, or would like to submit an article idea, please contact the editor.