What is demand substitution type in SAP SCM-IBP-RM - Response?

SAP Term: demand substitution type

• Component: SCM-IBP-RM

• Component Name: Response

• Description: A setting for a location material that defines which kinds of requirements for this location material are allowed to be substituted. If, for example, for a location material the demand substitution type is 0, the location material may only be substituted when the location material is requested to satisfy an independent demand.

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• Key Concepts: 
  Demand substitution type is a feature in SAP's Supply Chain Management (SCM) and Integrated Business Planning (IBP) solutions that allows users to replace one demand item with another. This feature is useful for managing demand variability and ensuring that the right products are available at the right time. 
  
  How to use it: 
  Demand substitution type can be used to replace one demand item with another in order to meet customer needs. For example, if a customer orders a product that is out of stock, the user can substitute it with a similar product that is available. This ensures that the customer's needs are met while also minimizing inventory costs. 
  
  Tips & Tricks: 
  When using demand substitution type, it is important to ensure that the substituted product meets the customer's needs. It is also important to consider the cost of the substituted product and how it will affect inventory levels. 
  
  Related Information: 
  Demand substitution type is part of SAP's SCM and IBP solutions. It can be used in conjunction with other features such as inventory optimization and demand forecasting to ensure that customers' needs are met while also minimizing inventory costs.