The customer is using item substitutions (plan groups) on formulas that consist of two lines, each with its own priority. The primary and secondary formula item have corresponding item coverage setup that replenish demand with planned purchase orders at warehouse 12 and transfer this demand to warehouse 13. However, when planning is run with demand at warehouse 13 the system completely ignores plan group setup. It covers the demand with on-hand inventory and replenishes the remaining quantity only for the item with priority 1, without considering the on-hand inventory for the item with priority 2. However, if the demand is for warehouse 12 (where no transfer is required), the item substitutions work as expected, and the on-hand inventory for the item with priority 2 is considered.
Comments
We are seeing similar behavior where substitute BOM component items are not being used by planning optimization when the "Item substitution for bill of materials in Planning optimization" feature is enabled as documented here: https://learn.microsoft.com/en-us/dynamics365/supply-chain/master-planning/item-substitution Per the article, we have met the prerequisites (see https://learn.microsoft.com/en-us/dynamics365/supply-chain/master-planning/item-substitution#prerequisites), including: - You must be running Supply Chain Management version 10.0.40 or later.- The feature that's named Item substitution for bill of materials in Planning optimization must be turned on in Feature management. The issue: We are not seeing the expected results when a substitute item has been setup in a Production item's active and approved bill of materials. For our test cases, we have verified that the "Priority 1" item in the bill of materials does not have any available inventory, but the substitute "Priority 2" item does. The expectation is that any Planning Optimization-recommended planned production order will include the substitute item as it has available inventory.
Category: Planning
Administrator on 10/16/2025 1:52:41 PM
Thank you very much for your input. We do not have any current plans to provide such an extended capability in Planning Optimization. We will however continue to monitor how much in demand such an extended capability is.
The Supply Chain Planning Team