A food manufacturing company is making a sauce from a formula that has 20 ingredients. One ingredient in the formula can be substituted by one of two other ingredients. However, because these two ingredients are more expensive than the preferred ingredient, substitution is used only if the preferred ingredient is out of stock. The material that can be substituted is called A, whereas the two materials that can replace it are called B and C. Material substitution by planning is controlled by the Plan group and Priority fields on the formula lines. For this example, you create formula lines for the three materials, and associate the formula lines with the same plan group. In the setup, the formula line for material A has the highest priority (lowest number), the formula line for material C has the lowest priority, and the formula line for material B has a priority that is between the priority of the other two lines. If you have demand for the finished item, master planning first determines whether the demand for material A can be covered. If the demand can't be covered, master planning looks at materials B and C, in order of priority.

This should be changed to:

If you have demand for the finished item, master planning first determines whether the FULL QUANTITY demand for material A can be covered. If the FULL QUANTITY demand can't be covered, master planning looks at materials B and C, in order of priority.

If material B is on hand, it will be used after a planned batch order is firmed for the formula.