How does Substitution (High Spares) work in Ascendo?

The substitution part (sometimes called High Spares) provides the mapping of items that can be replaced by another item. Ascendo uses this information to optimize the spares requirement to see if another part can be used to support the customer demand if there is no inventory available for a given part.

Ascendo supports advanced options for the users to create the substitution order where Ascendo will look through the order to fulfill the expected spares demand. For example, a given part (part 1) has three sub parts (part 2, part 3, and part 4).

Here’s how the substitution logic works:

If inventory is present for a particular sub part, Ascendo suggests the customer to use that part irrespective of its Reorder Point (ROP), providing there is enough inventory of that sub part to meet the spare requirement.

Note that when substitutions are used, one sub part is used to fulfill the demand. Meaning, multiple sub parts will not be used to meet spare requirements at a depot level.

If there is no inventory, then Ascendo suggests planning for the part which has a ROP along the substitution sequence i.e. checking which sub part has ROP in order.

If ROP is not set or zero, then Ascendo suggests the customer to plan for the part which is the last in the substitution order.

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ILLUSTRATION OF LOGIC

Spares demand quantity is 3 for Part 1 in all the below scenarios.

Scenario 1:

Scenario 2:

Scenario 3:

Scenario 4: