Calculating total scoring values per criterion

If you sent requests for quotation (RFQs) to bidders, you can rank the RFQ responses that you received from the bidders to decide from which bidder you will purchase. Before you can rank the responses, LN must calculate the scoring values for each response. The procedure for calculating the total scoring value for each criterion includes several steps.

Note

LN retrieves the RFQ data that is needed for the calculation from the Purchase Request for Quotation Lines (tdpur1502m000) session and the response data from the Buy-from BP - Quotations (tdpur1506m000) session.

Delivery dates

In the first place, a scoring value is calculated based on the delivery dates. The delivery date difference is calculated as follows:

  • Delivery date is specified on the RFQ and the response
    Delivery difference = RFQ delivery date - response delivery date
  • Lead time is specified on the RFQ and the response
    Delivery difference = RFQ lead time - response lead time
  • Start date is specified on the RFQ and the response
    Delivery difference = (RFQ start date - response start date) + (RFQ end date - response end date)

LN retrieves the scoring value for the delivery difference from the Criteria Set - Scoring Schemes (tdpur1193m000) session.

The scoring value is calculated as follows:

Delivery date scoring value = DW * delivery difference SVAL
Quantity

A scoring value is calculated based on the quantity. The quantity difference is calculated as follows:

Quantity difference = (RFQ quantity - response quantity) * 100 / RFQ quantity.

LN retrieves the scoring value for the quantity difference from the Criteria Set - Scoring Schemes (tdpur1193m000) session.

The scoring value is calculated as follows:

Quantity scoring value = QW * quantity difference SVAL.
Vendor Rating

A scoring value is calculated based on vendor rating. LN

LN retrieves the vendor rating percentage from the Vendor Ratings by Period (tdpur8102m000) session and the Vendor Ratings by Criterion (tdpur8102m100) session.

The scoring value is calculated as follows:

Vendor rating scoring value = VW * vendor rating percentage.
Subjective criterion

A scoring value is calculated based on the RFQ criterion. LN

LN retrieves the subjective scoring value from the Subjective Scoring Values (tdpur1193m100) session. The scoring value is linked to the RFQ in the RFQ Response - Subjective Criterion Scores (tdpur1195m000) session.

The scoring value is calculated as follows:

Subjective scoring value = SW * subjective criterion scoring value.
Price

A scoring value is calculated based on the offered price.

LN retrieves the lowest price and the response price from the RFQ Responses (tdpur1506m000) session. The lowest price is the lowest submitted price of all the selected bidders on an RFQ. The response price is the price of the specific bidder.

The scoring value is calculated as follows:

Price scoring value = PW * ((lowest price / response price) * 100)
Legend
DWWeightage for the delivery dates
QWWeightage for the quantity difference
VWWeightage for the vendor rating
SWWeightage for the subjective criterion
PWWeightage for the price difference
SVALScoring value per criterion

LN retrieves the weightages from the Criteria Set - Criteria (tdpur1192m000) session.

Note

After the total scoring values are calculated, you can rank the responses. For more information, refer to Ranking RFQ responses.

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