What is location interchangeability in SAP SCM-APO-MD - Master Data?

SAP Term: location interchangeability

• Component: SCM-APO-MD

• Component Name: Master Data

• Description: A suite of functions in SAP APO that are used to control the replacement of one location by another. There are basically the following cases: Location substitution chain Location list Location determination procedure Location product substitution chain Location product substitution procedure

Smart SAP Assistant

• Key Concepts: 
  Location interchangeability is a feature of the SAP Advanced Planning and Optimization (APO) module of the Supply Chain Management (SCM) suite. It allows for the substitution of one location for another in a supply chain network. This means that if a certain location is not available, another location can be used instead. This helps to ensure that the supply chain remains uninterrupted and that goods can still be delivered to customers on time. 
  
  How to use it: 
  Location interchangeability can be enabled in the APO module by setting up a substitution rule. This rule defines which locations can be used as substitutes for each other. Once this rule is set up, the system will automatically substitute one location for another if the original location is not available. 
  
  Tips & Tricks: 
  When setting up a substitution rule, it is important to consider the cost implications of using different locations. For example, if one location is more expensive than another, it may not be cost-effective to use it as a substitute. It is also important to consider the lead time associated with each location, as this will affect how quickly goods can be delivered to customers. 
  
  Related Information: 
  Location interchangeability is closely related to other features of the APO module such as transportation lanes and transportation networks. These features allow for the efficient routing of goods from one location to another, which helps to ensure that goods are delivered on time and at the lowest possible cost.