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

SAP Term: location substitution chain

• Component: SCM-APO-MD

• Component Name: Master Data

• Description: A chain of locations that can replace each other. A single location is replaced by another location in a location substitution chain.

Smart SAP Assistant

• Key Concepts: 
  Location substitution chain is a feature of SAP Advanced Planning and Optimization (APO) that allows users to define a sequence of locations that can be used to substitute for each other in the event of a supply chain disruption. This feature helps to ensure that the supply chain remains uninterrupted and that the right products are delivered to the right locations. 
  
  How to use it: 
  To use location substitution chain, users must first define the sequence of locations in the system. This can be done by creating a substitution chain in the APO system and assigning each location in the chain a priority level. Once this is done, users can then assign each location in the chain to a specific product or product group. When a disruption occurs, the system will automatically substitute the affected location with the next highest priority location in the chain. 
  
  Tips & Tricks: 
  When setting up a location substitution chain, it is important to consider how long it will take for products to be delivered from each location in the chain. This will help ensure that products are delivered on time and that disruptions are minimized. Additionally, it is important to keep track of any changes made to the substitution chain as these changes may affect future deliveries. 
  
  Related Information: 
  Location substitution chains are just one of many features available in SAP APO. Other features include demand planning, supply network planning, and global available-to-promise. For more information on these features and how they can help optimize your supply chain, please refer to SAP's official documentation.