Calculating ratings for objective criteria (step 1)

The first step that LN carries out in the calculate objective criteria ratings process, is the determination of objective values.

The values for the following objective criteria are calculated:

  • Delivery Time
  • Delivery Quantity
  • Delivery Quality
  • Order Confirmation
  • Cost Performance
Delivery Time
Actual Receipt Date  - Current Planned Delivery Date
Note
  • The current planned delivery date is the highest of the delivery dates. As a result, this can be the planned delivery date or the confirmed delivery date.
  • A negative delay means an early shipment
Delivery Quantity
((Approved Quantity + Rejected Quantity) / Ordered Quantity) * 100
Delivery Quality
((Approved Quantity + Rejected Quantity for which the own company is responsible) / (Approved Quantity + Rejected Quantity)) * 100
Note

If the Responsibility field is Own Company in the Rejected Inventory (whwmd2570m000) session, the delivery quality rating is not negatively affected.

However, the responsibility for the rejected quantity is taken into account only if the following are applicable:

  • The Handle Rejected Goods check box is selected and the Inventory Disposition check box is cleared in the Inventory Handling Parameters (whinh0100m000) session.
  • The Responsibility field is manually specified for the rejected quantity in the Rejected Inventory (whwmd2570m000) session.
  • The rejected quantity can be deleted before vendor ratings are updated.
Tip

Do not specify a partial responsibility for the rejected quantity. If the rejected quantity is handled in batches and the supplier is responsible for two pieces and your own company for three pieces, only the responsibility for the last batch is stored in history. Therefore, the delivery quality cannot be correctly calculated.

Example

Total rejected quantity: 10 pcs

The rejected quantity is processed in these batches:

  • 3 pcs destroyed, responsibility is Own Company
  • 5 pcs destroyed, responsibility is Supplier
  • 2 pcs destroyed, responsibility is Own Company

In history, the following is registered: 10 pcs destroyed, responsibility is Own Company.

Therefore, the responsibility value is reliable only when the responsibility is the same for the total rejected quantity.

Order Confirmation
Order Confirmation Date - Purchase Order Entry Date (= delay)
Cost Performance
(Purchase unit price / Average purchase price) * 100

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