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Can an item have both Make & buy sourcing rule -Constrained plan

Summary:

Our client buys an item from a supplier and if the supplier can't provide the item they manufacture the item in house.
We want to setup this scenario in Supply planning cloud/GOP.
We defined the item in PIM as a make item and created a local sourcing rule rank 1 buy from supplier and rank 2 make at org.
We defined a constrained plan and uploaded supplier capacity when we refresh the plan it is suggesting only make orders and not suggesting any buy planned order.
Has anyone come across this scenario and is this expected functionality

Content (please ensure you mask any confidential information):

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