Updating overall vendor rating

When you do a full update of the vendor ratings in the Update Vendor Rating (tdpur8850m000) session, the calculation of the overall vendor rating for each business partner is the fourth stage in the calculate/update vendor rating procedure.

The following methods, which you specify in the Methods/Factors field of the Vendor Rating Parameters (tdpur0100m800) session, are used to calculate the overall vendor ratings:

Moving Average
For more information, refer to Moving average
Smoothing Factor
For more information, refer to Smoothing factor

The overall vendor rating is calculated in the Update Vendor Rating (tdpur8850m000) session and displayed in the Vendor Ratings by Period (tdpur8102m000) and Vendor Ratings by Criterion (tdpur8102m100) sessions.

Before LN calculates the overall vendor rating, the period rating for the newest business partner/period combination is calculated. LN calculates the period rating for the business partner/period combination as follows:

Period rating = sum (CR * AW)

CR	Both the objective ratings and the subjective ratings for the newest business partner/period combination are taken into account. The objective ratings are retrieved from the Objective Ratings (tdpur8106m000) session and the subjective ratings from the Vendor Ratings by Period (tdpur8102m000) and Vendor Ratings by Criterion (tdpur8102m100) sessions.
AW	The actual weightings are calculated in the first stage of the calculate/update vendor rating procedure. The objective criteria weightings are retrieved from the Vendor Rating Parameters (tdpur0100m800) session and the subjective criteria weightings from the Vendor Rating Subjective Criteria (tdpur8190m000) session.

Example

The following criteria apply to a business partner in the newest period:

Criterion	Rating	Actual Weighting
Delivery time	90	30%
Quality	80	40%
Customer Service	50	20%
Delivery Service	70	10%

The period rating for this business partner/period combination is calculated as follows:

Overall rating = (90 * 30%) + (80 * 40%) + (50 * 20%) + (70 * 10%) = 76%

LN writes the results of this calculation to these sessions:

Vendor Ratings by Period (tdpur8102m000)
Vendor Ratings by Criterion (tdpur8102m100)

In this case, the Criteria Type and Criteria fields are blank in the Vendor Ratings by Period (tdpur8102m000) and Vendor Ratings by Criterion (tdpur8102m100) sessions to make clear that the displayed vendor rating is the overall rating for the business partner/period combination.