Component Pick Release Consider Substitute Items?
Unfortunately as per current functionality, Oracle Work in Process does not consider substitute items in its pick lists.
This is stated cleary in in Oracle user guide Section"Assigning Substitute Components" where it is mentioned that Substitutes are only used by Oracle Master Scheduling/MRP, and not by WIP
Also in section "Job and Schedule Values for Picking" segment of WIP User Guide we see that one of the mandatory condition for component picking is that Material is defined at the operation and autocharge is enabled.
As stated above, material must be defined at the operation. Given that substitute components is not defined as a material requirement for the repetitive schedule, it will not be pick released. Your requirement requirement is not supported in current version.