Calculating vendor ratings

To calculate the vendor ratings after orders are processed and questionnaires are compiled, you must update the vendor ratings. You can do a net update or a full update of vendor ratings.

Note

Because the full update process takes a lot of time, you are advised to only do a full update in the following cases:

  • You changed the parameters in the Vendor Rating Parameters (tdpur0100m800) session.
  • You no longer want to take into account the manual changes, which you can make in the Vendor Ratings by Period (tdpur8102m000), Vendor Ratings by Criterion (tdpur8102m100), and Objective Ratings (tdpur8106m000) sessions.

If you did not change parameters and also did not manually change the vendor ratings, calculating the vendor rating gives the same result for a full update and a net update.

Net update of vendor ratings

To do a net update of the vendor ratings, clear the Full Update check box in the Update Vendor Rating (tdpur8850m000) session. As a result, only the purchase order lines that are newly processed in the Process Purchase Orders (tdpur4223m000) session and fall within the defined period, are taken into account. The calculation is as follows:


 NR = ((OR * V) + (nRL * nVL)) / (V + nVL)

NRnew rating
ORold rating
nRLrating of new purchase order line(s)
Vvalue on which the old rating was based
nVLvalue of new purchase order line(s)
Full update of vendor ratings

To do a full update of the vendor ratings, select the Full Update check box in the Update Vendor Rating (tdpur8850m000) session. As a result, all purchase order lines that are processed in the Process Purchase Orders (tdpur4223m000) session and fall within the defined period, are taken into account in the calculation of vendor rating. So, LN calculates totally new ratings that are fully based on the data in purchase order lines history.

If you do a full update of the vendor ratings, LN completes the following calculation steps:

Step 1. Calculating actual weightings

For more information, refer to Calculating actual weightings.

Step 2. Calculating ratings for objective criteria

For more information, refer to Calculating ratings for objective criteria.

Step 3. Calculating ratings for subjective criteria

For more information, refer to Calculating ratings for subjective criteria.

Step 4. Updating overall vendor rating

For more information, refer to Updating overall vendor rating.

Note

You can use the following sessions to view the calculated vendor ratings or manually modify the calculated vendor ratings:

  • Vendor Ratings by Period (tdpur8102m000)
  • Vendor Ratings by Criterion (tdpur8102m100)
  • Graph Vendor Ratings (tdpur8701m000)

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