Modeling of Replacement Strategies

Use

In Service Parts Planning (SPP), you can model supersession to create various replacement strategies. A replacement strategy is made up of a replacement type (for example, one-to-many substitution or many-to-one substitution) and a link category (AND or OR). The link category can describe the following variants:

Several products together replace one product (AND).
One product replaces several products together (AND).
Several products replace one product alternatively (OR).
One product replaces several products alternatively (OR).

Example
If product A consists of products B and C, and you no longer want to sell product A as a whole but rather as products B and C, this is an AND link category.

If you previously used predecessor product A in both models X and Y, and now want to replace A in model X with successor product B, and A in model Y with successor product C, this is an OR link category.

End of the example.

In SPP it is possible, for example, to only partially replace a product, to replace several predecessor products with one successor product, or to replace a predecessor product with several alternative successor products.

To define a replacement strategy, you use the specified replacement types that you assigned to the respective replacement strategies in Customizing.

Prerequisites

You have assigned replacement types to replacement strategies in Customizing for Start of the navigation path Advanced Planning and Optimization, under Supply Chain Planning Next navigation step Service Parts Planning (SPP) Supersession Assign Replacement Types to Replacement Strategies. End of the navigation path For more information about replacement strategies, see the Implementation Guide (IMG) for Service Parts Planning .

Features

One-to-One Substitution

You want to completely replace a predecessor product with a successor product.

The successor product takes on the entire demand of the predecessor product as well as its own demand.

You model this replacement strategy as a supersession chain with one item. The item consists of one predecessor product and one successor product. If you want to use this replacement strategy, you enter the replacement type, which you assigned to the one-to-one substitution strategy in Customizing, for the item in the product and location interchangeability master data.

One-to-One Substitution with Partial Substitution

You want to only partially replace a predecessor product with a successor product.

The successor product takes on a part of the demand of the predecessor product as well as its own demand. The remaining part of the demand remains with the predecessor product.

Example Example

You replace product A with product B, but continue to sell A.

End of the example.

You model this replacement strategy in the same way as a one-to-many substitution (OR), but you also define the predecessor product as one of the successor products. This means, for example, that for the first item, successor product B replaces predecessor product A, and for the second item, successor product A - which is identical to predecessor product A - replaces predecessor product A.

If you want to use this replacement strategy, you enter the replacement type, which you assigned to the one-to-many substitution (OR) strategy in Customizing, for each item in the product and location interchangeability master data. For one item, you choose a successor product that is identical to the predecessor product. You also have to maintain the demand percentage for the demand quantities for each item.

One-to-Many Substitution (AND)

You want to replace a predecessor product with several successor products together.

The AND link means that each successor product takes on the total demand of the predecessor product.

Example Example

Product A consists of product B and product C. You no longer want to sell product A, but rather sell products B and C as independent products.

End of the example.

You model this replacement strategy as a supersession chain with one item. The item consists of one predecessor product and several successor products. If you want to use this replacement strategy, you enter the replacement type, which you assigned to the one-to-many substitution (AND) strategy in Customizing, for the item in the product and location interchangeability master data.

One-to-Many Substitution (OR)

You want to replace a predecessor product with several successor products alternatively.

The OR link means that the demand of each of the successor products receives a percentage of the demand of the predecessor product. As a precaution, you can define the demands of the successor products so that the sum of all demands is over 100%.

Example Example

You have used predecessor product A in both models X and Y.
You replace predecessor product A in model X with successor product B.
You replace predecessor product A in model Y with successor product C.
You specify how the demand of A should be divided between B and C. B can, for example, take 65% and C 50% of the demand of product A.

End of the example.

You model this replacement strategy as a supersession chain with several items. Each item consists of one predecessor product and one successor product. At item 1, product B replaces product A, and at item 2, product C replaces product A.

If you want to use this replacement strategy, you enter the replacement type, which you assigned to the one-to-many substitution (OR) strategy in Customizing, for each item in the product and location interchangeability master data. You also have to maintain the demand percentage for the demand quantities for each item.

Many-to-One Substitution (AND)

You want to replace several predecessor products together, with one successor product.

The AND link category means that the successor product takes on the total demand of the predecessor product that you have defined as the leading predecessor product.

Example Example

In future, you want to sell individual parts A, B, and C as set D. You define product B as the leading product, and take the demand of B for set D.

End of the example.

You model this replacement strategy as a supersession chain with one item. The item consists of several predecessor products and one successor product, and one of the predecessor products is the leading predecessor product. If you want to use this replacement strategy, you enter the replacement type, which you assigned to the many-to-one substitution (AND) strategy in Customizing, for the item in the product and location interchangeability master data.

Many-to-One Substitution (OR)

You want to replace several predecessor products alternatively with one successor product.

The OR link means that the successor product takes on the sum of the demands of all predecessor products.

Example Example

Models X and Y require different components for the same function. Model X needs service part A and model Y needs service part B. In future, both models will use service part C instead of A and B. C therefore replaces both A and B.

End of the example.

You model this replacement strategy as several supersession chains, each with one item. Each of these items consists of one predecessor product and one successor product. If you want to use this replacement strategy, you enter the replacement type, which you assigned to the many-to-one substitution (OR) strategy in Customizing, for the item in the product and location interchangeability master data.

Substitution of Remanufactured Products

You want a new product to take on part of the demand of a product that is to be remanufactured. The part of the demand that the new product takes depends on the capacity restrictions of the supplier that delivers the remanufactured product.

Example Example

You have to remanufacture 100 pieces of product A. However, your supplier does not have sufficient capacity and can only remanufacture 80 pieces. As a customer service, you deliver 80 pieces of the remanufactured product A, and an additional 20 pieces of new product B to the customer. Product B thus takes on 20% of the demand of product A.

End of the example.

You model this replacement in the same way as a many-to-one replacement, that is, as a supersession chain with one item that consists of a predecessor and a successor product. If a new product can replace several products that are to be remanufactured, you create several one-to-one supersession chains. If you want to use this replacement strategy, you enter the replacement type, which you assigned to the Substitution of Remanufactured Products strategy in Customizing, for the item in the product and location interchangeability master data.

For more information about setting up the master data for product and location interchangeability, see Master Data for Product and Location Interchangeability .